Is there any kind of market for "rent to own" servers? Let's say an HP-branded rack server, 2x quad core, 8GB ram, 2x 146GB drives, 100mbit for $150/month then you own the hardware after 6 or 8 months. Would people buy such a package? Has anyone ever tried it?
Yes. I would collocate the server then after the 6, 8, or whatever month period is up, you can cancel at any time (assuming you want to) and the server would be shipped to you. If you cancel prior to that, you would forfeit the server.
lease to own
basically service provider just add the "value" of the server into monthly price.
R210II, E3-1240, 8GB Ram, 2*500GB HDD with price say USD$1,500
Colo of 1U with price say USD$100/mth
Then customer can choose lease to own for like USD200/mth and take away the server after 15mths.
Some people like it because they would like their data to be secure(at least the server belongs to them not the DC) after a period of time in a data center. Just a rough calculation.
Alex - info[@]serverhk.org Server Hong Kong Company - The optimized choice
No limitation at service scope but promise you always the best price for whatever service level required.
I believe there is a market for it. I'm not sure if most users would actually think to look for a rent to own server though. I think it's something most would have to stumble upon and think, "hey that's neat. I can own a server."
I'm going to give dacentec a try soon. They're not overly expensive servers, so I'm sure the cost is low for them. Looking at reviews and stuff they must have a fairly large client base and doing lots of turnover.
I'm willing to bet the majority won't stick out the contract. Would you replace hardware while on contract? Or charge the user for it?
It sounds good on paper. In reality, it's not. Remember this. Once the server is yours, you will get to pay a lot when a component breaks down. If you rent a server, your provider will be responsible for the hardware.
If you mean to get the server back, expect to pay a lot for just shipping and by time you paid for the server, it will be one or two generations older which renders your server obsolete and making your newly purchased server totally not worth the money you paid in total.
I choose not to use my signature for advertising.
It doesn't matter how much you claim how important your data is. If it's not backed up, it's not important.
It might be the beginning of a good idea. Now think it through more. Pretend you are the customer. Customers like to understand the future. They want to know what their path looks like. And, you can help shape that.
Once they own the server they can move it or keep it with you. You need to show that this is affordable. As @alucasa says components break. How can you handle that "sales road block" and make money? Can you offer a service contract that together with colo is still a good deal? Now you are building a suite of products that takes the client further into the future.
The cost of acquiring a customer is great. So do all you can to offer a long term path to retaining that customer.
I like the concept...
Last edited by gPowerHost; 10-05-2013 at 05:37 PM.
I have seen this by others before, and it is a great idea. The one that I saw, offered dedicated machines monthly, with a premium on top of this if you wanted to take the lease to own option... but it was an extra fee on top, NOT included by default in the basic lease. This way they were competitive for normal dedicated pricing, yet still able to offer the lease to own service.
like your example, of $150 server, you might offer lease of say $135, but $15 extra to lease to own... this way you can be attractive to all potential users.