You need to size the load based on the plans you have available and the usage of your customers.
You really should have multiple VPS servers so you can move VPS's between servers to balance resources and load better as needed.
There's a pretty big initial investment to get Virtuozzo licensed and running, especially if you buy HSPcomplete. You're really not going to see that great of a return until you can scale large enough with multiple servers that you're able to leverage that initial investment and time spent.
Well the margin is there like Dan pointed out, but you can have nearly the same support load as shared accounts as well so it can be a pain.
It is possible to boot strap your investment and get in relatively cheap for a couple thousand with the licenses or leasing. But the leasing gets very costly in the long run.
Honestly if you're done your due diligence, tested the trial, and you ready to commit to the product I'd highly recommend buying the full licenses up front if possible. Definately scale it past those initial customers to your break even point to get out of the red.
Are you looking at using HSPcomplete? You'd probably be better off going that route for the integrated sales/management plus the reseller portion.
Just because someone is new to WHT doesn't mean they haven't been in business for a couple of years.
It was someone from my office that was asking these questions. He is new to WHT. He is starting A-Major hosting under our company - SAM Business Solutions, LLC. (Go ahead, check your whois record for sambusinesssolutions.com - June, 2003.)
Arch - my employee, was put in charge of looking into VPS's to offer under our new -REGISTERED tradename A-Major.
Often we are quick to try to judge people here and we shouldn't.
Very simple questions about VPS's shouldn't turn into something else. The fact that you actually spent the time to lookup amajorhosting.com in a whois says a lot. This domain isn't mentioned anywhere in this post.
For those of you who actually gave arch good input, I personally thank you.
President, SAM Business Solutions, LLC
Last edited by SBS Marketing; 07-30-2005 at 12:27 PM.
We did our research on VPS's as well, and figured out the profit % was not high enough as compared to support and hardware/setup costs to justify expanding into this arena. When we can make 5-7 thousand per shared server per month, it is hard to try and capture that kind of profit in a VPS scenario.
For us, offering VPS solutions was not the way to go. We focus on shared hosting and fully managed dedicated server hosting. It works well in our situation, YMMV.
How much account do you put on a shared server to get a 7K return on it ??
About the vps, the problem to our point of view is the pricing of the virtuozzo licence.
If there was a reliable and easy other vps solution we would definitely go for it.
At the moment, we have decided to take a try with a small Xeon server, one one cpu virtuozzo licence and we will see if it is profitable.
If other vps systems (freevps, uml, ... ) where reliable to our criterias we aldready be focusing on that bisness.
SBS marketing, thank you for clarifying, there was no need to get worked up over it though.
There are lots of wannabes on WHT who are always lying to people about their "success" and Im pretty sick of it.
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