I have always thought that sago palms were very beautiful. Since I have lived most of my life in areas where the temperatures stay well below freezing for most of the winter season, I only saw these palms used as decorative, indoor plants. After moving to Arizona, I have seen many sagos planted outdoors.
My research on sago palms has revealed that there are actually two plants which bear the same name. Both Metroxylon palms and Cycas revoluta (also referred to as a Japanese sago palm) are called sago palms. The former belongs to the palm genera, whereas the latter is a member of the Cycas genus. The five species of Metroxylon palm, which is a massive tree that accumulates starch in the pith of the trunk, are found in five separate areas of Micronesia and Melanesia. Species include M. salomonense (heavy nut palm or ivory nut palm), M. warburgii, and M. sagu. The last palm is the one which is called a sago palm. Found in Malasia, Indonesia, Mindanao, and New Guinea, it grows to 26-65 feet tall and 6 inches to two feet in diameter!
The Japanese sago palm belongs to the Cycas genus, which includes approximately 40 to 50 species such as C. circinalis (Queen sago), C. taiwaniana, and C. rumphii of palm like plants. C. revoluta (Japanese sago palm), found mainly in the Japanese Nansei Islands and South China, is much smaller than M. sagu. Although the trunk can grow to 10 feet high and 16 inches in diameter, many are only half this size. Cycas revoluta is a choice container or bonsai plant, useful for a tropical look, and the most widely grown cycad. It is tough and hardy to 15?F.
Sources: A Guide to Palm and Cycads of the World (Lynette Stewart) and Sunset Western Garden Book