Starting a Shared Web Hosting Company
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@hobbit666 I have about 20 sites to start with.
The market is full of low cost providers providing little or no customer service.
What will make us better is our customer service.
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Maybe I can host grovesocial.com for @Danielle-Ralston .....
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These guys have fantastic support.
The pricing is brilliant.
Their team is big enough to deliver, small enough to care https://www.tsohost.com/about/meet-the-teamCan you beat all 3 of the above?
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This is going to be more than difficult. Even at $5 a month per site, that's only $100 a month with 20 sites. Is that even enough to cover your costs for this?
Are you just hosting Wordpress sites or are you saying your main advertisement site will be Wordpress?
Also unless you automate account creation, you are going to have to manually set up folders for each site.
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Just don't. You can't beat prices and make any money you need large scale setups/data centers to make money with it. And offering multiple things in that DC to make it more cost efffective.
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It's true that there are many with bad customer service, but there are also many with good customer service. One of the problems, in general, is that low cost and great customer service cannot go together reasonably. The cost of customer service can easily become more expensive than the company pays.
Say you do normal pricing which is, at most, $5/mo (that's actually mid range pricing but it is decently low) which comes out to $60/year.
That $60/year has to cover your cost of collections (covering credit card fees and such) and all of the issues with people who don't pay (do you just cut them off, no warning... is that good customer service, do you bill them months in advance, do you give them free service for a while until they decide to pay... none of these things are free and all are very common issues) and if the customer has a single issue in a year it can easily cost more than $60 to support that one ticket.
So even if your entire hosting infrastructure is free, just the backend management stuff could end up costing you more than the customer is worth. It is a very tough business.
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We were a web host going back to the 1990s. Back when there weren't the low cost hosts out there everywhere. It kind of made sense then. We phased it out over a decade ago, it was just not a viable business model until you have tens of thousands of clients and even then, very hard to do.
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One of the difficult things is that to have good pricing you need to run on your own hardware. But to have scalability you'd want cloud. That makes things very hard.
Likely your only reasonable option would be to start with dedicated hardware and project as best as possible when to buy and just stop taking on new customers if you grow too fast until new gear arrives.
Something like Dell R730xd with some SSDs for the MariaDB server VMs and then SATA disks for your application VMs would work well and be cost effective.
Something like the Scale HC2100 and HC2150 hybrid tiered cluster would do the same and allow you to grow from three nodes to a dozen or more with high availability built in and growth built in giving you an HA infrastructure plus a growth system. Otherwise growing past one node is going to be very, very painful as you move from local storage to a CEPH cluster or whatever.
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A HyperConvereged system (compute and storage in one). So you can just add another node a scale out both storage and compute power you just add another node.
However this is not cheap, a single node with a few TB can easily cost as much as house.
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@Jason said:
A HyperConvereged system (compute and storage in one). So you can just add another node a scale out both storage and compute power you just add another node.
However this is not cheap, a single node with a few TB can easily cost as much as house.
A very cheap house
I know that an entry level Scale system starts at roughly ~$25K in the US. That would be a full three node HA cluster with all of the storage and compute included. So while it is far more than just buying a single server and figuring out scaling later, it gets you into the HA world and the scale out world all in a single purchase and let's you host quite a lot of web before needing to invest more. And it would be under $300/mo to host in a Tier IV datacenter.Scaling to more capacity would be done in chunks of like $8500 or so. So you can grow as you bring in customers.
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How does bandwidth work in those solutions? I hear Scott saying that he gets 100 Mb connections in those colo's but I'm assuming that it's just one per server. Not sure if a Scale cluster would be considered 1 or 3 (assuming 3 servers?) But really that's not relevant - what's relevant is what you are providing to your customers on that cluster.
I have no clue, so I'm putting this out there as a question.
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@Dashrender said:
How does bandwidth work in those solutions? I hear Scott saying that he gets 100 Mb connections in those colo's but I'm assuming that it's just one per server. Not sure if a Scale cluster would be considered 1 or 3 (assuming 3 servers?) But really that's not relevant - what's relevant is what you are providing to your customers on that cluster.
Depends if you are buying by the rack (this would be a quarter rack probably) or by the "U". If you buy by the U, you get one connection from each node. If you buy by the rack, you get one connection to your rack.
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You could easily negotiate a quarter rack with three node, two switches (that's 5U) and a GigE drop with metered bandwidth.
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@scottalanmiller said:
@Jason said:
A HyperConvereged system (compute and storage in one). So you can just add another node a scale out both storage and compute power you just add another node.
However this is not cheap, a single node with a few TB can easily cost as much as house.
A very cheap house
I know that an entry level Scale system starts at roughly ~$25K in the US. That would be a full three node HA cluster with all of the storage and compute included. So while it is far more than just buying a single server and figuring out scaling later, it gets you into the HA world and the scale out world all in a single purchase and let's you host quite a lot of web before needing to invest more. And it would be under $300/mo to host in a Tier IV datacenter.Scaling to more capacity would be done in chunks of like $8500 or so. So you can grow as you bring in customers.
Most be pretty low end, VBlock starts around $180,000 for entry level. though for true shared webhost only you don't need much the fanciest.
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@Jason said:
@scottalanmiller said:
@Jason said:
A HyperConvereged system (compute and storage in one). So you can just add another node a scale out both storage and compute power you just add another node.
However this is not cheap, a single node with a few TB can easily cost as much as house.
A very cheap house
I know that an entry level Scale system starts at roughly ~$25K in the US. That would be a full three node HA cluster with all of the storage and compute included. So while it is far more than just buying a single server and figuring out scaling later, it gets you into the HA world and the scale out world all in a single purchase and let's you host quite a lot of web before needing to invest more. And it would be under $300/mo to host in a Tier IV datacenter.Scaling to more capacity would be done in chunks of like $8500 or so. So you can grow as you bring in customers.
Most be pretty low end, VBlock starts around $180,000 for entry level. though for true shared webhost only you don't need much the fanciest.
VBlock is crazy stuff, doesn't have any low end offerings. Most hyperconverged starts at a fraction of that price. VBlock is, AFAIK, the most expensive offering on the market, not "normal" by any stretch. And only comes in very large sizes.
Other hyperconverged players like Scale, Starwind, Nutanix, Simplivity start around the same range as each other.
VBlock makes their money off of people buying the name, you pay a massive VMware tax on that gear. Not that that is bad, they have great technology, but like Cisco, you pay a ton of overhead just for the name.
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Why delete this? If you have the ability to do it, more power to you. It's also a good reference for people who might be wanting to do the same thing.
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@johnhooks I didn't delete it.....
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@aaronstuder said:
@johnhooks I didn't delete it.....
Somebody did, and then you put it back up. When most of us were reading this, OP was deleted.
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@aaronstuder said:
@johnhooks I didn't delete it.....
What it back?
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No idea why the OP was deleted. But it is not purged, or was not last that I checked. That means that it can be recovered.
