- How to start business of renting servers? how to start, what to do, how to do and is it worth it?

Shaping the great minds.

Friday, 2 March 2018

How to start business of renting servers? how to start, what to do, how to do and is it worth it?

  • Some basic information to take into consideration:
  • The market size globally is huge.
  • Dedicated server marketWill reach 5.72 billion dollars in 20186.03 billion dollars in 2019 and 6.53 billion dollars in 2020.
  • Shared Hosting (Their providers usually use VPS, dedicated servers). In 2018, the market for shared hosting services is predicted to reach 18.7 billion U.S. dollars worldwide.
  • Competition in the web hosting industry (Shared, dedicated, VPS and cloud) is very aggressive. So be ready for that!
  • How do I start business of renting servers:
    • Perform an initial idea evaluation and market research to avoid time waste!
    • Starting a business requires a combination of different aspects: Technical skills, $$, marketing, team, passion, timing, … check this video: The single biggest reason why startups succeed
    • There are many people and businesses who enter the market and succeed, and others who fail and exit for different reasons.
    • In the web hosting, things are much easier that other markets where you need buildings, infrastructure, …
    • You have to take into consideration what kind of services do you want to sell (managed servers, unmanaged servers, …).
  • how to start, what to do, how to do
    • I suggest to start SMALL and expand as needed based on your context.
      • You can start as a reseller of other big brands (This will help you from the branding and marketing perspective). Select your partner carefully to make your journey easy!!
      • You can try the VPS servers and go to the dedicated servers, or take both based on on your potential to attract customers and create a profitable business.
      • If you already have what it takes, other businesses acquisition may be an option to consider. (It takes more funds, but may make other things easier instead of starting from scratch. You have to carefully evaluate the deals based on your business objective)
  • and is it worth it?
    • I will say Yes. If the existing providers are making money and are able to build good brands and exit the market buy acquisition, why not you?
    • It really requires a VERY VERY HARD WORK!
Hope this helps and good luck!

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