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Getting into the Server Business?

post #1 of 18
Thread Starter 
Not 100% sure if this is the right place or even the place to ask it, but here goes..

I am trying to figure out if it is possible to start up a small server company. My plan is to upgrade my internet speed to business or enterprise package and build a dedicated server and start hosting dedicated server space. Is it possible for there to be a "little guy" in this industry or would the big companies with a warehouse, climate controlled units, and rows of server towers just simply be to much to compete against.

This is the early stages of my research, but I figured a post on OCN would be a good place to start..

Obvious things I need to look into:
ISP Provider Costs
Electricity for 24/7 usage
Server itself
Advertising for Clients

Most important:
Is there any long term profit...

Maybe it wouldn't hurt to start out renting a dedicated server from a company and building a client base in the game server hosting community?

Any serious help or guidance is appreciated and yes I know there is a pretty huge start up cost.. I have a funny feeling that the market is flooded with hosting companies and everyone is very competitively priced making it impossible for a "little guy" to cover even his overhead..
Edited by JMattes - 6/2/13 at 11:11am
post #2 of 18
Quote:
Originally Posted by JMattes View Post

Any serious help or guidance is appreciated and yes I know there is a pretty huge start up cost.. I have a funny feeling that the market is flooded with hosting companies and everyone is very competitively priced making it impossible for a "little guy" to cover even his overhead..

Unfortunately, I believe this is going to be the case. Unless if you already have a small client base, you will not be able recoup your expenses from the hardware or hosting costs to make any kind of profit.
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post #3 of 18
Thread Starter 
Thanks for the post. I was hoping someone has some insight or has thought about or is doing this..

Maybe it would be a good idea to rent space from an already established provider and then build the client base.. Once I have a small client base myself I would run the numbers to see if it were cheaper to own my own set up?
post #4 of 18
What you do mean by "dedicated server space"? Shared webhosting? VPS? Define that first.

Next, what can you guarantee for your customers out of your home in terms of reliability? Are you going to have multiple ISPs drop internet into your home for link redundancy? What about power? Do you have a backup generator so your customers don't have unexpected downtime? If you can define what you actually want to sell, and then you can see how much it's going to cost to invest in your home. My bet is you'll want to look at colocation, or renting dedicated servers to fulfill your business model successfully.
post #5 of 18
There's no profit in this unless you have high volume and/or the hardware/software infrastructure is already paid for. Factoring in stuff like uptime, data retention, backups, weird client configuration needs, etc., your ambitions are misplaced.
    
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post #6 of 18
Thread Starter 
Quote:
Originally Posted by Oedipus View Post

There's no profit in this unless you have high volume and/or the hardware/software infrastructure is already paid for. Factoring in stuff like uptime, data retention, backups, weird client configuration needs, etc., your ambitions are misplaced.

I have to agree that my ambitions may be misplaced and I may not know enough about the subject to define what service I want to provide to customers..

I really love computers and learning even more than i already know and will try to research this further. I am just looking for something to do with the capital i have that is sitting around to create more capital and do something I can love.
post #7 of 18
You might be able to do something profitable using Amazon EC2. Very little investment required. But the whole buying servers and the infrastructure to support them and running all of that out of your home thing is not a good idea.
Edited by Shub - 6/3/13 at 9:13am
post #8 of 18
Honestly, there is no such thing as "The Server Business".

If you want to get into hosting, get a partnership account with a hosting company. Refer people and make some money. This way you can build up some clients.
    
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post #9 of 18
Thread Starter 
Quote:
Originally Posted by Shub View Post

You might be able to do something profitable using Amazon EC2. Very little investment required. But the whole buying servers and the infrastructure to support them and running all of that out of your home thing is not a good idea.

Quote:
Originally Posted by killabytes View Post

Honestly, there is no such thing as "The Server Business".

If you want to get into hosting, get a partnership account with a hosting company. Refer people and make some money. This way you can build up some clients.

Its advise like this ^^ that brought me to OCN. Saves people like me from making BIG mistakes.. Haha

Thanks guys!

I will continue to explore my options and looking to a partnership or possible Amazon EC2?
post #10 of 18
What I was thinking about yesterday was getting a bunch of hard drive space, and setting up a bittorrent sync with people. Charge like $5 per synced folder per month and go from there. Definitely wasn't intending to make (net) any money from it, but I thought it might be something fun to do.
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