Hello all,

I have been observing these sites like Hostgator, Site5, resellerzoom and blah blah,

Would anyone care to share how do they work, i mean do they have their own datacenters or what do they do,

Like content site owners, they get a server and hook their content, that's it, but hostgator guys resell space. So, i buy a reseller package from them and go into hosting but my host is hostgator.

Who is hostgator's host? where do they get space from?

Sorry I am confused but I am sure many over here will be able to explain it.

HostGator has a full blown server (a "type" of a computer); more than one of course. Each server usually has the same specifications as high-end computers, although servers can be low-end as well. The server is hosted in a data center (a building), which provides a very fast internet connection (10/100 mbps theoretically), redundant power and makes sure that nobody tampers with the server.

Basically, HostGator rents space from the data center, and perhaps also servers (I do not know their practice). If they do not rent the servers, then they collocate (send their own servers) in the data center facility.

where do they get space from?Hostgator gets servers from ThePlanet, Site5 from NAC and Liquidweb, ResellerZoom from ThePlanet and NAC.

The vast majority of hosts don't own their own datacenter, as having one really makes sense only after they reach a certain size.

Thanks so far, just because you mentioned the planet here, I am sure there must be biz dealings but then when they also sell dedicated servers which are more or less same as theplanet price then where does their profit share comes from

Does, theplanet or other bighost like theplanet, layeredtech or dedicated now provide some discounts to them( i can only think of this'discount' term as i guess there only lies the profit for hostgator)

Guys, this thread is not for me particularly but there are many who will be able to learn from this, i hope u understand
I am dead confused

The actual numbers are obviously never publicised, but I imagine that since Hostgator is the biggest (or at least one of the biggest) customers of The Planet, they get a significant discount. The margin for dedicated servers remains relatively low though. That's just how this market is.

All the host you write, they didn't have own datecenter, they get the servers from datacenter, like the best ThePlanet has good number of server with hostgator

Dan,

I can understand about the specific numbers but then what i need to know is whether hostgator/resellerzoom/site5 have their own racks/ colocate ( I am not sure what does this means)
It would be better if they themselves or someone else like
who are just ceritified resellers care to explain.

If i need to start something like hosts mentioned above, what do i need to do, ( Though i can understand about support/payment/fraud) but I am not sure about the concept.

Originally posted by dibooker
what i need to know is whether hostgator/resellerzoom/site5 have their own racks/colocate

Ask them. If you are not sure what their replies mean, ask them to elaborate.

ML

Originally posted by MeatLoaf
Ask them. If you are not sure what their replies mean, ask them to elaborate.

ML

ML.

I am sure they must be going through this thread so I don't find any other way to let not only myself but many others to know about this concept

Di

I'm not sure that there would be many (relatively speaking) others that are confused by this concept. Perhaps if this was a forum about deep sea fishing, there would. :)

ML

The Comapnies providing Reseller plans would fall into one of a few categories depending upon their size, location and operating procedure

1. They have a dedicated server (s) they lease from a data centre then divide it up into reseller plans which they sell to their clients

2. The have their own server(s) which they colocate in a data centre - this means they own the actual box but lease the space and the bandwidth in the data centre to have it located there

3. When they have enough boxes they will lease a Rack form the data centre. Servers are stored in racks with x per rack depending upon its' size. (You can see pics of servers in racks on most hosts sites on their Network or Data Centre info page

Each of these stages come from Economies of scale - by buying your own hardware you save money on the ongoing lease of the server then the more servers you have the more bandwidth you use/buy and the cheaper rate you will get

All in all it doesn't make a lot of difference to the end user how the host sets it up at the top

For example with our US based servers we lease them form the data centre and they maintain the hardware for us as they retain ownership of it. This is quite simply because with us being located in Australia it is not practical for us to have our own and maintain the hardware or pay someone to do it for us

Whereas in Australia we have in the past leased servers in the same way as above but we are now purchasing our own hardware and colocating it in a data centre and in time will obtain possibly 1/3rd of a rack then a full rack etc

Essentially the more servers you have the more your buying power and the more options which are open to you

Hope this he lps explain what you wanted to know ;)

Hi Angus,

Yeah, it gives an idea to some extent but then I would like to get some other brain's poke in here as well.

To add more, Suppose I start getting a single P4 dedicated server for ev1 and have all my frontend ready/billing/support.

Soon, i start getting few customers and need to get to upgrade and have some more servers. Do i need to inform ev1(just for example) that I am a reseller and a discount on the servers would be better( from a biz point of view) or the discount is offered by themselves. It might sound something stupid of me but still there's no harm asking it.

Opinions would be appreciated

Originally posted by dibooker
Hello all,

I have been observing these sites like Hostgator, Site5, resellerzoom and blah blah,

Would anyone care to share how do they work, i mean do they have their own datacenters or what do they do,

Like content site owners, they get a server and hook their content, that's it, but hostgator guys resell space. So, i buy a reseller package from them and go into hosting but my host is hostgator.

Who is hostgator's host? where do they get space from?

Sorry I am confused but I am sure many over here will be able to explain it.

The host's you've listed either have a wealth of co-located/dedicated servers, or run their own datacenter.

EV1 or whoever couldn't care less what you use the server for.

It is about buying power and while you can always ask I doubt they will give you a discount for a second server

You need more than that

Lets face it Dedicated prices are cheap as chips for a simple machine and margins are very tight due to competition so they don't have much room to move discount wise

If getting a discount on a second or even first server is essential to your business plan then I suggest you just pack up and go home now

Hey Angus, thanks for your smartups, but let me inform you, i have nothing to pack up now as my box is empty though. With such a rude post I can understand how you will particularly care about your clients but you should you have seen earlier i mentioned ev1 ( as an example), even they need more sales , so they would be happy to give a first discount( might be a case with me if not yours).
I am sure there are many good hosts here who are there to help the newbies and help them to start their biz

My post wasn't intended to be rude I was just saying that it sounds like your need of a server is greater than a data centre's need of a client

I am also not from a culture that believes everything is negotiable

If I want a product and I believe the price is appropriate I am happy to pay it without trying to beat them down

They have to make a living as well :)

If you don't have any clients then I would seriously recommend you consider looking at a reseller plan before getting a dedicated server

That way you can build up clients and revenue to make the move to a ded profitable from the start

Speaking of data centers and The Planet, just check out some dc's sites...like theplanet dot com.

They'll give you an extensive overview of what a data center is all about. Most people/web hosts use dc's rather than having their own so if you rent web space from a host, they are just (more or less) re-selling what they rent from whatever data center they use.

yeah WHG, thanks, i would look into this. Anymore suggestions pls