Me: So are you going to start a hosting company?
Friend: If I had the $$$ I would
Me: How much do you think you'd need?
Friend: This world needs good hosts with lots of capability.
Friend: $125,000 initial equipment capital, and $10,000 a month operating capital for at least 6 months
Me: hahaha
Friend: not ****ting you
Me: funny. hold on
Friend: that is what it would take

He is referring to think of "I was refering to starting your own company with all your own equipment, and all your own bandwidth"

And then I go on laughing...

He does not seem to understand that you can Co-Locate or Lease a Dedicated Server and still be better than some of the big guys. But yet again I'm not insulting his intelligence either.

Some people don't know what web hosting is, so at least your friend is a step ahead on that piece.

well, at least he's not thinking of reselling for ***** or anything just as worse!!! :D

Looks like he wants to have a small Noc with a T3.

There are not much to make from webhosting in the first place. The big money are made from dedicated service. IMO