I had a very small hosing business of course not as a primary source of income. I worked for about three years and made profit during the whole period. I could make profit as twice as the expenses! However, before two years I figured out that I'm not able to compete anymore and I have to develop to new ideas and new services or expand my business by any sense. I did not have the time to do so and just left the industry.

I was concerned if this industry is going to expand or not. If one is not a primary hosting provider, can he/she make real profit?
Dedicated servers, resellers, virtual servers, etc... but what is next? How can small hosting businesses survive with the current competition? Even local markets are already saturated and still lots of people are out there who wish to run hosing business.

I might be a bit outdated about what's going on around here but it's not bad to have some discussion about how can a small business grow up given current situation?

Find a niche that needs serviced, and focus on that. There definitely are ways to do well in the industry, but you'll have to be creative to find avenues that aren't already full. ;)

It's like anything else . . . takes money to make money unless you get in on the ground level, which if you're starting now, it's probably too late to do ;)

I believe the VPS and the remote desktop scene is going big!

Alot of people in countries with slow connections are interested in taking remote desktop accounts from the high end countries.

The dedi is where the money is at.

OK. But a big problem is finding the target community. That would eliminate the available options for what to go for next.

A small hosting business can never target the global community at first. The local market may also not be enough to grow up. Then what? Maybe a bigger region?

The dedi is where the money is at.
How did you reach that conclusion?

I've found that Business style hosting and Servers are the current goers in the market

Business style hosting is going right now because companies are resorting to the web to sell products as it's more cost effective for them.

And the Server Market (Dedis,VPSs, etc) I find are going well with larger companies and individuals wanting to develop or run hosting services.

Basically you have to target market - i see a lot of companies that offer many, many services, and don't tunnel their ideas and dedication into one market. Eg. If you want to do Shared hosting, Then offer shared hosting for a while and expand when you have profit.

It always helps to have a Business Strategy and Model.

I'll be honest, I've never put too much thought into what other hosts are up to or marketing for new clients. I'm not too worried about what's hot in hosting, or the latest fad. I have a product that I know is in demand, and I knuckle down and slowly build the client base, focusing on making sure they're happy and new accounts come in as a result of happy clients. I'm the oldish turtle who likes it slow and steady. :)

Excellent Advice Aussie Bob!

I suppose VPS market will be going large. VPS is most secure service.

The dedi is where the money is at.

I suppose VPS market will be going large. VPS is most secure service.

Where are people coming up with these statements? What market research have you conducted to prove this?

I suppose VPS market will be going large. VPS is most secure service.

You can't just pluck figures out of the sky buddy..where do you know VPS is the MOST Secure Service?

You can't assume. Successful companies don't assume and pluck figures and hopefully strike lucky and make it. Intensive planning, research and solid business plan is all thought out.

To compete with the giants, you have to overcome your own FEAR. Fear is nothing but F-alse E-vidence A-ppearing R-eal. Fight the demon within your own mindset. Only then will your creative juices flow.

There's always a place for any Web Hosting company to make it big. What I mean by BIG is, Big within your local market, region, area, country, globally.

And lastly, you need to think BIG. But by doing so, you are not suppose to falsify things. Which means, if you are a reseller, just say you are a reseller. If you don't own a data center, don't say you own a few just because you want to think big.

The right way to thinking big is, "I'm going to start small, this is my plan, after I hit X amount of clients, I'm going to upgrade to VPS, get a few guys for 24x7 tech support, launch a feedback session with existing clients to find out how they feel. Next I want to expand to my region. People in my neighboring countries and lastly, I am going to announce myself to the world"

Now that's thinking big AND honest.

I'll be honest, I've never put too much thought into what other hosts are up to or marketing for new clients. I'm not too worried about what's hot in hosting, or the latest fad. I have a product that I know is in demand, and I knuckle down and slowly build the client base, focusing on making sure they're happy and new accounts come in as a result of happy clients. I'm the oldish turtle who likes it slow and steady. :)
That's great strategy.
It's not necessary to look for what is current trend in the market. As you said, one can develop smoothly while building a solid client base. But then you still need to know what is your market and what is the demand?
This is the main problem.

...But then you still need to know what is your market and what is the demand? This is the main problem.

Without knowing this, I don't think you should start a business. You need a plan, before venturing to start a buiness. You're just going in blind.

You absolutely need a business plan. Part of that plan should be analysis of the market - starting with your local communities. The growth of broadband, coupled with current economics, contribute to increased numbers of small business start ups, all needing Internet and web services. The opportunities are there right now.

I'm the oldish turtle who likes it slow and steady. It may be easier to like it slow and steady when you've a home, and made a name for yourself. When you're a younger wannabe, patience is something you can afford only in limited amounts, or so I think.

Any suggestions on how to sense the market?
It could be a very broad question but just looking for general guidelines.

... contribute to increased numbers of small business start ups, all needing Internet and web services.

I like this part.