Hosting opening and development

Started by inaevrodom, Aug 26, 2022, 09:25 AM

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inaevrodomTopic starter

Good evening.

I would like to discuss with you the hosting business or the development of a hosting service as such on a small scale.
Let's imagine that there is an N-th amount of money and a desire to open hosting service.
Experienced sharks and bison, tell me how things are in this difficult matter?

1. What is the approximate payback period for a small hosting operator? Which wagon and a small cart on our Internet.
2. What injections, of course, in your opinion, are necessary to open hosting service. In terms of money.
3. What billing do you prefer to use from what is on the market?
Which DCs to take and where is it better to take servers?
4. What kind of hired server admins do you need to take and who provides such services?
5. Any advice about experienced hosting providers?

It is clear that nobody will ever say what and how in the end, but it is always worth listening to opinions and advice!
Is there a hosting forum somewhere where all providers communicate with each other?

Thank you all!


I will assume that "small scale" means a small income, but the expenses will be like everyone else (not small). Due to the scale, large players will be able to offer lower prices + they have recognition + they have trust (how many years on the market). And what can a small hosting provider offer?

"Not knowing the ford, do not go into the water." M.b. you should get a job at a hosting company and look at their kitchen from the inside.

For hosting service in its purest form, you need a team of prof. admins and a great desire on their part to develop this business. We didn't have the last one. Maybe some kind of borderline option in the form of a service, for instance, some kind of constructor?

To get started and develop, you first need to take care of convenient registration / payment, fast 24/7 operational support and fault tolerance (backups, backup servers, etc., to recover in minutes).
Infrastructure can naturally be rented.


Currently, this business has many competitors. And at the same time, the dollar exchange rate is growing, and there are no more customers. Think for yourself whether a small hosting will be able to compete with already well-known brands. If there is still a strong desire to start such a business, then first try yourself in attracting customers. No matter how well you understand the technical part, advertising will play a major role. Try yourself in marketing with another major provider under the affiliate program.


How much can you earn by renting out servers?
Earnings in this business vary depending on the set of services that you provide. Different hosting providers have their own sets of options. Everyone decides for himself what he will provide.
For example, you can find one firm, work with it for many years, and it alone will provide business. Or rent a server to some esports company that arranges competitions. There are hundreds of options. The list of possible services is very large, it is almost impossible to present it as a single list.

But you can take the average figures for the market. If at the start — the amount of $10K, then the payback period will be from two months to two years. Here are some examples.

Find 100 clients who make money on website promotion, and provide them with hosting services for $500 a month. Plus help with various settings and support.
This strategy will bring $40K of revenue monthly. Such a business model will pay off in about half a year. In this case, you will additionally need a couple of system administrators who will provide customer support through the feedback form.

If you just rent out servers, then the payback period will be longer, since the customer takes over all the work on setting up the equipment. But such a model will not require the availability of appropriate personnel.

In addition to the standard options, there are also many non-standard strategies. For example, to enter into a partnership with an Internet café. This will provide a constant traffic of people who need a computer at the moment. Our article "How to create your own interactive café" will help you understand and find such a client.

Why does the server rental business deserve attention? Firstly, the fact that hosting services are in demand due to the growth of the Internet services market. Secondly, this type of business is very flexible. It can be started without initial investments, gradually increasing assets. You can find such a person on the system administrators forum and start a business with him.


I have always been extremely interested in the hosting business. However, I never decided to open my own hosting. It's probably even right. Many people have told me that the opening and development of hosting is quite expensive, both in money and in time and effort. Friends, think a hundred times before you start hosting.