How to become a hosting provider?

Started by Kevin56, Jul 11, 2022, 10:02 AM

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Kevin56Topic starter


Recently, an interesting thought came to my mind, I want to become a Hosting provider in my city. Already found out what kind of license is needed for this.

Please help with the technical part. Tell me what equipment is needed to provide good hosting services and how much will it cost? Thanks in advance.


Numbers order:
Server - 5-10K USD to start.
Data-center $300 per month.
Well, consider that the server will need to be constantly improved, buying new servers.
And so 10-15K USD enough at the beginning.

Gareth Brown

Hello. It's hard to answer right away. Your question is from the category: "I have a screwdriver - how to become an electrician?".

Before thinking about the technical part, you must decide what services you will provide - reseller, vps, dedicate, unique servers or something completely unique.

Here's an example for you: VPS hosting can be run without your own equipment. For this you will need:

1) rented dedicated server with support for hardware virtualization (one or more),
2) subnet of IPv4 addresses,
3) an agreement with the payment system,
4) VPS creation software,
5) billing platform,
6) site for the sale of services.

To start providing VPS services, you need one dedicated server with support for hardware virtualization. For example, on the Intel Xeon E5 processor. The E5-2630v2\64GB RAM server will allow you to run up to 55 VPS. RAM is needed as much as will be allocated by the VPS.

Each VPS is allocated a certain number of IP addresses. Therefore, you will need your own subnet of IPv4 addresses or several different IPv4 addresses. Additional addresses can also be rented from a hosting provider.

To sell VPS, you need to install VMmanager and BILLmanager.

BILLmanager supports CentOS 7, while VMmanager supports CentOS 7 x64 or CentOS 8 x64. You can use a physical server or a virtual one based on KVM.

And this is just the tip of the iceberg. It is better for you to read amateur forums that are geared towards creating a platform for hosting providers.


In general , it is dreary and expensive ! Are you ready to spend a lot of money just to become a legal hoster? At least try to submit the licensing documents first - maybe the desire will disappear by itself? :) Please note that in order to get a license for telematics, you need to hand over the communication node first.


Hosting services are extremely inconvenient to carry out alone. And in the absence of your own servers, the presence of hosting partners is a prerequisite for work.

The following legal entities can become partners for a new business on hosting:

Data centers.
Various intermediaries.
Companies that assign part of a large order that cannot be implemented alone.
Service companies that repair and prevent equipment.
Companies that supply software.
A data center (from the English data center), or a data storage and processing center, is a specialized building for hosting server and network equipment and connecting subscribers to Internet channels.


what do you need to know and be able to open your own hosting business?


To begin with, one dedicated server is enough. Unix or Windows - it's up to you. We needed support for both ASP and PHP, so we had to take it under Windows.

You need to choose a reliable provider with a good reputation. Our choice was on LayeredTech, but now I would not recommend them. They have raised prices and technical support is sometimes stupid. They also had problems with leaking customer data.
When the number of clients on the server reaches a certain critical value (100-250 clients, depends on many parameters), take another server, etc.

If you have several providers in mind, subscribe to their mailing list. They have very interesting sales. For instance, we took a server with a prepayment and a small monthly payment, which has already justified itself.

  Control panel

The beauty of hosting is in a control panel such as Plesk, Helm or DirectAdmin. The panel makes life easier for the administrator by hiding most of the unnecessary details from him. In addition, it provides an interface for end users where they can configure FTP, email, password protect directories, etc.

We chose Plesk and were satisfied. Everything is quite simple and intuitive.


To collect money from customers on a regular basis, you need a billing system. We first installed ModernBill, but it turned out to be unbearably buggy. Neither we nor the specialists from their technical support were able to launch it. We lost two months on that and switched to WHMCS. It has fewer features, but everything works and is much easier to configure. Moreover, for some pennies, their technical support installed and configured everything on our server. I strongly recommend it.

  Backups and redundancy

You can't afford to lose customer data. There are several strategies the best results are achieved by combining them.

Using a RAID controller, you can protect yourself from hard disk failure. It is unlikely that both disks will fail at the same time. Automatic backups will save you from the physical destruction of data, for instance, in the event of a fire or as a result of the actions of a virus. As a backup software, I recommend looking at Acronis True Image. Plesk has its support.


Everything is simple here. A suitable template is found on OSWD and is being finalized with a file.
Here is the original template. Here's what happened at the exit.

  Accepting payments

If you are not doing business online for the first day, that is not a question for you. Accept payments in all ways available to your customers and you will be happy. Don't forget to make sure that your billing system supports all these payment methods.

As an experiment, I opened a full-fledged merchant account for that case and filled the cones. The main points are as follows:

you need to be ready to provide a bunch of documents and financial statements of the company.
if you have several web sites or areas of activity, each of them may require its own merchant account. I recommend that you specify the main site and type of activity
at the opening, the companies providing merchant account may have their own rules that may go against the needs of your business. For instance, my provider requires that all services and goods be provided within 90 days. This makes it impossible for me to sell through them such services as technical support for one year.

  Technical support of users
We provide web hosting only to those who have already bought one of our programs. Thus, we have few hosting clients and they are loyal. Questions about hosting are sent to the main queue of technical support and are answered along with other questions.

If you are thinking of hosting as an independent business, you need to approach the issue of technical support more seriously. Most hosting clients expect a response and a solution to their problem within a few minutes or hours, 24x7.


It's hard to promote a general-purpose web hosting company, the competition is great. Since we promote hosting only among existing customers, the following methods are used:

the mention in the mailing
list of the signature "Ask me about our hosting special" in the answers to users' questions
, we offer serves to customers who have problems with existing web hosting
a button in the program that allows you to upload the generated application to the server in one click. This works, of course, only for our hosting clients, because in addition to the actual download, some actions are barely performed on the server
a little later we will add a web  hosting offer at a discounted price to the checkout process.
Actually, that's all. The initial cost of buying software and renting servers was approximately $2,500. Now there are several dozen customers who are quite satisfied with the service. When we finish the run-in, we will promote the service more aggressively.