Is there anyone interested in starting a webhost?

Discussion in 'General Business' started by TrafficSales, Mar 11, 2008.

  1. #1
    I'm curious if anyone is interested in a bit of investment to start a webhosting biz? I can design a layout, install / manage webservers and can find customers. I believe at the low cost of my find and low colo fees this could be a good revenue opportunity to someone with interest.

    I have been searching around alot for a decent buy on a server and I came across an amazing deal of not one but 5 server. Now normally one wouldn't think about this deal as it would cost too much to colocate all five servers right?
    The good news is I have a friend where I live that owns an ISP with a 100mbit line and he's willing to work with myself and whomever decides to invest. I know how to manage linux webservers so it would be nice if my partner knew too but not absolutely necessary.

    Total cost of the servers?
    Get this 5 Servers for a total of $3,499.99

    Are they junk / obsolete servers?
    They look pretty decent to me with the stats below

    Each of the servers is the following specs. They won't sell just one either all five need to be purchased at the price.

    Specs on the servers can be found here.

    http://www.dell.com/downloads/global/products/pedge/en/sc1425_specs.pdf

    2x64-Bit Intel Xeon 3.4GHz - 4GB RAM

    1x73GB 10K RPM U320

    Component Description

    CPU 2x64-Bit Intel Xeon 3.4GHz - 800MHz FSB - 1MB L2 Cache - Hyperthreading
    Memory 4GB (4x1GB) REG ECC DDR2 SDRAM (Max. 16GB, 6 slots total, 2 slots free)
    Hard Drive 1x73GB U320 10K RPM
    SCSI Controller Adaptec 39320R U320 SCSI - S/W RAID 0/1
    SATA RAID Controller CERC SATA 2s (Adaptec Controller - S/W Based) - RAID 0/1/JBOD - 2 SATA Ports
    Chipset Intel E7520
    PCI 1x64-bit/133-MHz PCI-X
    Power Supply 1x450W Non-Redundant - 100-240V, 6-3A, 50/60 Hz
    Onboard Ports 2xUSB 2.0, 2xPS2, 1xSerial, 1xVGA Out, 2xRJ45, 1xHD68 External SCSI
    Remote Management IPMI 1.5 compliant Baseboard Management Controller - Dell PDF Details
    Network 2xIntel 10/100/1000 Gigabit Ethernet
    Other Drives 24X CD-Rom
    Tested Yes - Knoppix, Dell Diagnostics
    History Off-Lease
    Notes Front cover & rack rails are included. Manuals and CDs are not included. Please inquire for alternative SATA or SCSI hard drive configurations if required. The SCSI card, SCSI cable, and hard drive can be exchanged for $100 CAD credit per server.

    I'm not worried about the software as I have copies of Redhat / Fedora Linux.
    I also have Cpanel / WHM already.

    Even simply upgrading the harddrive storage of each server to 500 or 1000 gb mirrored running Raid would enable each server to make around 9000.00 per month fully occupied.

    If anyone thinks this is a good opportunity they can send me a pm.
     
    TrafficSales, Mar 11, 2008 IP
  2. JohnJ

    JohnJ Active Member

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    #2
    I would recommend posting a thread at WebHostingTalk.com about this. There are a lot of people searching for opportunities like this, and they are most likely to hang around WHT.

    As for those servers, I'd never recommend starting a web hosting company with so many. In all honesty, you aren't going to grow that fast, seeing that the market is so saturated. Leasing five servers will do nothing but waste your money. I'd recommend starting your company with one or two servers. This would cut your expenses and maintenance time as well.
     
    JohnJ, Mar 11, 2008 IP
  3. TrafficSales

    TrafficSales Peon

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    #3
    These aren't leases.They were ex - leases. It's a purchase of 5 completes. Each has 4 gb of Ram.
    If you put dual 1000 gb drives in them instead of the single in them now you could sell great value packages dirt cheap and sell space in volume without overcrowding due to having 5 servers instead of 1? The bonus is the lack of a heavy colocation fee thanks to my friend.
     
    TrafficSales, Mar 11, 2008 IP
  4. JohnJ

    JohnJ Active Member

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    #4
    I see. Then I guess it's up to you. :)
     
    JohnJ, Mar 11, 2008 IP
  5. foxxx

    foxxx Peon

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    #5
    if it was me, i wouldnt be targeting shared hosting with them, since its a group of servers you'd be buying, your in a good position to start a grid service.

    sell virtual servers like slicehost.com etc. grid hosting of vps is a better market, lower client numbers required, less support required, and controllable resources not thousands of sites hammering your server with proxies and warez.

    http://www.3tera.com/

    i'm half interested, can email or msn me todd at vexill dot com
     
    foxxx, Mar 11, 2008 IP
  6. TrafficSales

    TrafficSales Peon

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    #6
    Good idea. I've added you to msn. Lets discuss.
     
    TrafficSales, Mar 12, 2008 IP
  7. QiSoftware

    QiSoftware Well-Known Member

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    #7
    Sounds interesting-- however isnt' this market saturated?

    Q...
     
    QiSoftware, Mar 12, 2008 IP
  8. TrafficSales

    TrafficSales Peon

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    #8
    One could argue that but there's some money to be made still. It's all in marketing / presentation / and the biggest customer service. Having a low overhead would enable offering of these services at a lower rate with all the bells and whistles.

    If anyone is seriously interested please send me a pm. I'm in the process of also trying to arrange a local grant to get going on this but the hardware purchase has to come first.

    I propose that we also keep one of the five servers for our own project development (sites) at zero cost to those involved.
     
    TrafficSales, Mar 12, 2008 IP
  9. Pixelrage

    Pixelrage Peon

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    #9
    Webhosting is a great side business as long as you're willing to commit a portion of your life to being a tech support guy. One of the main reasons why it is so tough, though, is that you basically have to compete with Hostgator's prices to be considered.
     
    Pixelrage, Mar 12, 2008 IP
  10. TrafficSales

    TrafficSales Peon

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    #10
    I've had BAD experiences with hostgator (support wise). Yeah I'm already speculating spending my days doing support. I think it's key that support is priority #1
     
    TrafficSales, Mar 12, 2008 IP
  11. Pixelrage

    Pixelrage Peon

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    #11
    it's very tough to compete with their $5/mo plan with unlimited domains. My friend used to charge something like $20/mo for a package like that!
     
    Pixelrage, Mar 12, 2008 IP
  12. TrafficSales

    TrafficSales Peon

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    #12
    It's not so tough though if you have very little overhead and all the hardware lined up. Hostgator is overpopulated and their support minimal.

    I think you'd get alot of loyalty customers too if you treat them well.

    It's not always about 5.00 vs 20.00

    Alot of people would spend that extra 15 for the safety blanket of knowing they aren't going to lose 6 months work in the event of a crisis.

    Hostgator actually did that to me too. Lost 6 months of my work by deleting my vps by accident mistaking it for another account without so much as an apology and not a single backup.
     
    TrafficSales, Mar 12, 2008 IP
  13. pottz

    pottz Peon

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    #13
    I've often considered doing this myself, but the overheads were too much. That said, I have 40 domains now and moving into my own reseller account is becoming more and more realistic option so I cut out the middle man..

    Where are you located is the pivotal question for me? I worked in a datacentre for 4 years so I know a bit out hosting, servers, bandwidth, rack space, etc.. and have a few contacts still so..

    Add me to MSN if you want..
     
    pottz, Mar 13, 2008 IP
  14. tolisd

    tolisd Peon

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    #14
    how much is your servers upload speed
    in which network you belong to?
     
    tolisd, Mar 13, 2008 IP
  15. TrafficSales

    TrafficSales Peon

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    #15
    Western Canada
    100 Mbit line.
    Network is Grade A
     
    TrafficSales, Mar 13, 2008 IP