Web Hosting Talk : Advertising Forums : Web Hosting Related Offers & Requests : Web Hosting Companies And Clients For Sale or Purchase : Web Hosting Company - 3 Owned Servers - Juniper Switch - 25 Shared & 40 VPS clients

[skatehall35]

Serious Inquiries only!

I am considering offers on a web hosting company that has been in business for just under 2 years. All equipment is owned by me and I co-locate a 1/4 cab that everything is housed in.

With the purchase you get the following (see below for hardware specifics):

The Website (with WHMCS integrated)
WHMCS No-Branding Full License $324
2 Servers running Hyper-V with website panel for control panel
1 Server running CentOS with cPanel
APC Switched PDU
Juniper Gugabit Switch
24 shared hosting (cPanel) customers
40 VPS (hyper-v) customers

Hyper-V Server 1
1 X RAID CARD ADAPTEC|2269500-R R
5 x HDD 1T|SEAGATE ST31000524NS
8 x MEM 4G|KST KVR1333D3D4R9S/4G RT
2 x CPU AMD|OPT X8 6128 2.0G G34 RT
2 x CPU COOL DYNATRON| A6 RT
1 x SERVER_BB SUPERMICRO|AS-2022G-URF R
$3265.33

Hyper-V Server 2
Supermicro SuperServer SYS-6015B-T+B 4Bay Hotswap Chassis 1U Rackmountable
- Supermicro SuperBoard X7DBR-i+ Dual Socket Xeon 5400 Series Server Board
- 32GB ECC/Registered DDR2 Memory (32GB Maximum)
- 2x Intel Xeon Quad Core E5440 2.83 GHz w/ 12MB Cache (8 physical cores)
- 2x 500GB Seagate Constellation ES Enterprise Drive
- 2x Mushkin 120GB SSD Drive
- Areca ARC-1110 Unified RAID Controller - 256MB RAM - 4port - PCI-X
- Dedicated Onboard KVM/IPMI 2.0 w/ Virtual Media and Power Management
- Heatsink - Mounting Rails - Raiser Card Included
$3069.00 USD

Shared cPanel Server with SSDs
Supermicro 2U - TWIN Hot-Pluggable Server (2 dedicated servers in one)
2x Intel Xeon E5620 Quad Core w/ HT (16 vcores total)
6x 8GB DDR3 ECC/Registered 1333MHz memory - 48GB Total Usable (expandable up
to 96GB)
4x 1TB Western Digital RE4 Enterprise Drives w/ 64MB Cache (expandable up to 6 drives)
Adaptec 2405 Unified RAID Controller (RAID-10)
Rails / Heatsinks / Riser Cards / Onboard KVM Included. *
$5200 USD

APC AP7941 30A 208v 24port Switched PDU (include shipping) * $390.00 USD

Juniper EX3200-24T Layer-3 Gigabit Switch (include shipping) * $1540.00 USD

Shared Customers Breakdown:
Basic Plan (Disk Storage 1 GB, Bandwidth 10 GB, $5.95/mo)
4 Monthly - 1 Semi-Annually - 3 Annually

Middle Plan (Disk Storage 3 GB, Bandwidth 30 GB, $7.95/mo)
3 Monthly - 2 Semi-Annually

Highest Plan (Disk Storage 6 GB, Bandwidth 60 GB, $11.95/mo)
9 Monthly - 3 Annually

Some shared customers are getting promotional prices in order to get customers in the door and help spread the word. Many are receiving 50%/Month.

40 VPS Customers
These customers have a variety of plans and prices, but their monthly income is: $965.16 USD

Expenses:
Cabinet Size: 1/4 Cabinet Included
120v Power: 10 Amps
Bandwidth: 100Mbps 95th Perc
Network Port: 1Gbps Full-Duplex (Copper)
IP Addresses: /25 (125 Usable)
Datacenter: Jacksonville FL - United States
Remote Hands: 1 Hour Per Month Included
Windows 2008 R2 Datacenter License 2-CPU(s) SPLAs
$736.05 USD

cPanel/WHM Monthly License
Fantastico Monthly License
$42.00 USD

This is not an auction but I am willing to consider any offers over $20,000. This auction has EVERYTHING that someone wanting to start a web hosting company needs. You have your equipment, website, WHMCS integration etc. Additional servers can be added to the co-location at no extra cost. Adding servers and customers only gets you more revenue. Your expenses will not increase unless you were to completely fill your 1/4 cabinet.

Anyone that would like more information please ask in the thread. If you need to see the site please request a NDA.

Thanks

[MyITGuy]

Would you be interested in selling the customers only?

[BigScoots-Scott]

Originally Posted by MyITGuy

Would you be interested in selling the customers only?

I've got the same question.

[skatehall35]

Originally Posted by MyITGuy

Would you be interested in selling the customers only?

Unfortunately not. I'm looking for a package deal only.

[BigScoots-Scott]

I agree with you, this is a good setup for anyone just starting out, sort of.

However the margins are slim to none given the massive servers for such a small client base, its not realistic for someone to take it on who is already established -- which is what you will normally find around these parts. Also, are the servers/equipment 2 years old? It looks like you are advertising them as new. They are certainly not worth their original value, tax wise even they would be worth 50% of that assuming you took the typical MACRS values for hardware.

If I'm looking at this correctly, shared you make ~ $2500/yr and with VPS you make ~ $11500/yr. Your expenses are ~ $10,000. So your profit margins are ~ $4000/yr. Given there would be little tax benefit remaining on the hardware, that would basically be it, dollar for dollar. It would take 5-6 years to break even on the investment.

Its highly likely I'm missing something here, but this is my interpretation at the moment with the provided information. I'm stating this because I am interested in the purchase but $20,000 is unrealistic, and the servers do not fit with the amount of resources you actually use.

$15,000 in equipment, $4,000 in clients. Just doesn't seem like a good fit at the moment. Of course we are certainly willing to purchase the clients off of you as stated above, and would even be willing to purchase *1* server, likely the SSD after some due diligence. If you'd like to chat further feel free to shoot me a PM or e-mail the NDA to scott [at] bigscoots.com, otherwise best of luck on the sale. Hope it works out for you.

[swiftnoc]

Looking at the figures, we have the same concerns as Scott mentioned above. The profit margin is indeed slim and the servers are aged, with the exception of the Dual 56xx
Do you have spare parts for that mainboards and controllers onsite as well? are the servers in a onsite hardware warranty program?

We would be willing to discuss taking over the package, but i doubt we will come at $20k to take it over. If you are willing to discuss, please mail akkermansr @ swiftway.co.uk

[webtech]

We'd be interested in talking about the clients but as the previous posters, $20k just is not reasonable for several year old equipment and expenses of roughly $10k/yr

[Jedito]

I agree, but the shared income is even lower than what Scott spotted since many have a 50% off. It's going to take years to get the invest back. If you are interested in sell it in parts, let us know.

[skatehall35]

Thanks for the replies. Yes, Jedito is also correct that some of the clients are receiving 50% off.

I see where the concerns are coming in from a profit stand point and they are all justified. The positive is that ANY customers added going directly to the bottom line, they are instant revenue as the monthly expenses are not going to increase unless you were to add enough servers to outgrow the 1/4 cabinet.

As for the asking price, please feel free to PM with any reasonable offers.

If you have any additional questions I will gladly answer them.

[BigScoots-Scott]

Very true, however I think the whole clients going directly to the bottom line thing applies to most well structured companies. Just meaning that typically with 1/4, 1/2 or full cabs and beyond, there is always room/amps/bandwidth to spare. Specifically in my case, while you are in a good position to bring on new clients, our full cab offers more room for savings so your 1/4 would actually cost us more. At any rate, a right price might still work itself out. I'm not sure for us, although I will PM you with an offer, but someone out there I'm sure could use those 3 servers. It might even be in your best interest to sell the equipment and customers separately just because of the margins for the company as a whole don't look good, but separate, things look great.