If I'm thinking of running a hosting business, have many contacts and money. Should I resell or go colo, hire a couple of people(Tech,Support) and run the whole show for myself?

I'm assuming Colo+Hire is more profitable as this cuts Value chain short and makes me more directly attached.

Please post your views.

I always suggest going resell first. If you make it and it works then move up to dedicated and go forward. Easier to go forward than backwards

I'm assuming Colo+Hire is more profitable If you have the customers to make it profitable that is. As a new company, unless you've got a big advertising budget, it'll take time to gain sufficient customers to break even. ;)

If you are just starting out without ANY customers, go reseller. Theres no reason to be paying for a dedicated server if you arent using any of its resources. Its just like wasting money. I guess the upside to a dedicated server would be that you could offer reseller plans. If that is what you want to do, then go with a VPS. Best of both worlds :)

I agree with, dbbrock1. There is no need to buy a dedicated server unless you're planning to start with load critical projects (when you would need whole server's power).
You can also consider choosing a VPS. Not so expensive as dedicated it provides you guaranteed resources.

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