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  1. #1

    Advice on Starting a VPS Hosting Company

    I am looking into starting my own VPS host primarily for businesses in the Denver area and I would like to get some advice on what Im about to dive into here.

    Just a quick background on myself. I have 15 years experience as a Systems Admin. Much of that in consulting where I have been in everything from wiring closets to various data centers for both small and large companies. Ive been lucky enough to work on some really neat stuff. Most of my time has been spent in RHEL and VMware environments. I also know my way around a LAMP stack and have created a handful of my own programs. Enough about myself.

    Now I would like to get into the cloud hosting game. I think I have the right hardware to build a extremely high performance, highly available, Hyper-V cluster. A few questions:

    1. Any advice on landing my first customers despite having zero track record?

    2. Is there demand for full SSD systems or would I be wasting my money?

    3. Anybody have experience hosting Hyper-V (2012 R2) w/ System Center & Azure pack? Any thoughts on this solution?

    Thanks in advance for tips and feedback!
    Last edited by Spiffster; 12-11-2013 at 11:21 PM.

  2. #2
    Join Date
    Oct 2013
    My advice: work on figuring out the answer to #1 before you invest money and build anything. Especially for technical people, the norm is to take a bit of a 'if you build it they will come' approach. This generally does NOT work.

    Technical people that succeed in hosting, software, or really any kind of technical business generally have SOME kind of special "in" or ability that lead to them closing lots of sales. The majority that do NOT have that connection or angle figured out, generally just lose money.

    So anyway, I'm sure you can build an extremely high performance, HA cluster. But make sure someone is buying before you do.

    The answer to your #2 is that yes there's definitely a market for SSD.

  3. #3
    Thanks for the reply xBenx! I think thats some solid advice and it makes sense... Unfortunately, like any other business venture, Its not what you know, but who you know.

    I think I will wait until an opportunity presents itself.

    My advantage right now is low overhead. I would be running the show as a side job as I am currently a full time employee.

    Running the numbers with equipment and SPLA licensing I should be able to provide self managed VPS and cloud services for small to medium businesses at VERY low rates. Think 6-Cores, 200GB SSD / 1.5TB SATA, 32GB RAM (All dedicated w/ HA) for about $350/ month with VM deployment limited only by resources allocated... kind of a run your own cloud for less than you could yourself business model.

    I would be targeting small businesses here in Denver who have IT on hand to manage their own resources while I would have the ability to provide hands-on assistance from time to time.

  4. #4
    Join Date
    Dec 2013
    Europe and US
    Hey Spiffster,

    Based on my own 20 years plus, i should disadvise to invest in your own infrastructure but resell other companies IaaS as it becomes more and more a commodity. Marketplaces like ours are filling in the need of customers to pick and choose what, where and how they would like to have their services delivered. What current customers are missing is knowledge to help them get the correct route thru the forrest of VPS,VPC,VM,VDI,SDN,SDS etc. You can fill in this spot and put your money on marketing instead of infrastructure. As soon you have bought your infrastructure it's deduct with 30% compare to the technology race which is currently running.


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