Results 1 to 14 of 14
  1. #1
    Join Date
    Mar 2012

    Rent to Own Hosting?

    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?

    I'm considering offering on my host.

  2. #2
    Join Date
    Jul 2010
    Do you mean colocation ?

  3. #3
    Join Date
    Mar 2012
    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.

  4. #4
    Join Date
    Jul 2010
    Never heard that before! You wanna colo and then cancel to receive server ? Why not just by server without colo I think is cheaper

  5. #5
    Join Date
    Jul 2013
    US; UK/EU; Asia/Australia
    what OP means is that he considers offering such a service.
    I think it is brilliant and it will market well!

  6. #6
    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.
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  7. #7
    Join Date
    Sep 2013
    You would want to buy a server and make payments on it, then place it at a colo facility. Dell is well known for working with small businesses and offering credit.

  8. #8
    Join Date
    Jan 2003
    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?
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  9. #9
    I never know about it before
    but I thought it's too good

  10. #10
    Join Date
    Jul 2000
    Lease to own has been around for a long time.

    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.
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  11. #11
    Join Date
    Mar 2013
    North and South America
    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. Reason: typos

  12. #12
    Join Date
    Nov 2006
    Lease to own doesn't make sense on such a cheap server - you could probably by one of those for about $200-300 used anyway, then just colo it.
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  13. #13
    Join Date
    Mar 2003
    Moved > Colocation and Data Centers.

    Instead of saying "we know some hosts do it" , why not tell the OP instead?

    OP: You may check . They do this rent to own.
    Last edited by net; 10-05-2013 at 07:55 PM.
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  14. #14
    Join Date
    May 2011
    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.

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