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Thread: VPS Potential

  1. #1
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    VPS Potential

    We are considering entering the VPS market and are just wondering if there is enough potential in it..? I find a lot of customers don't even know what VPS is.. and even more would just settle for a regular hosting account (which would be a lot cheaper since we wouldn't need to pay the huge Virtuzzu fees).

    If the demand is there, what price point would be best? If we roll this out we would be doing a full-scale implementation and would need a good amount of sign ups to offset the tens of thousands of dollars in investments.

    Any kind of comments or suggestions will be greatly appriciated!
    Alex Melen
    █ Co-CEO at Melen, LLC (dba SmartSites)
    █ Founder of T35 Hosting (established 1997)

  2. #2
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    There are many advantages and disadvantages, you have to weigh them up for yourself, but I'll give you a few pointers.

    -Are you going to be making enough money on your VE's to make it a worthwhile business (30-40% ideally).

    -VPS's and Shared Hosting are completely different markets, these people are generally resellers who want more power, there is no advantage in giving a VPS to a shared customer. So you have to decide which market are you going for.

    -You have to think how advanced you are in terms of support, are you ready to support something more than your average cPanel web server - because believe me there is a lot more management and experience required to manage a Virtuozzo node, you really need to know your stuff - or get someone else to do it for you.

    -Hardware, have you got the capital to be able to afford hardware that's going to stay up and perform well? Remember Dual CPU, SCSI , RAID, etc, etc.

    HTH

    Dan

  3. #3
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    Thanks for the response..

    We have the capital and the hardware... Have an idle quad xeon with 6gb of ram that would be perfect for the job.

    My only concern is the market for VPS... Is it strong enough for us to start offering it and get two dozen customers within the first month? Is that even possible? What prices would we have to have to do that?

    We already have our own data center with plenty of BW, so we should be able to offer VDS at a cheap enough price point.. I am just wondering if there is enough people wanting to get VPS.. and enough that would choose us over some of the other VPS hosts. The second question might be the most important, because at the very best we can only match the prices of the other guys, I don't know how much we would be able to undercut them.
    Alex Melen
    █ Co-CEO at Melen, LLC (dba SmartSites)
    █ Founder of T35 Hosting (established 1997)

  4. #4
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    For the plan, I was considering the following. I am not very experienced in VPS/VDS so please give me all the comments/suggestions you can.

    10gb Space
    100gb BW
    128mb dedicated ram (burstable to 2gb)
    $30/mo
    --- cpanel + $10/mo


    To make it easier on our side I am trying to get away with having just 1 plan.

    Comments/suggestions would be greatly appriciated.
    Alex Melen
    █ Co-CEO at Melen, LLC (dba SmartSites)
    █ Founder of T35 Hosting (established 1997)

  5. #5
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    Just as a note, I am hoping to put 20-30 such accounts on each of the servers (quad xeon with 6-8gig of ram). Is that realistic?
    Alex Melen
    █ Co-CEO at Melen, LLC (dba SmartSites)
    █ Founder of T35 Hosting (established 1997)

  6. #6
    I belive that this serevr can handle up to 30 or more with out a proplem with an acceptable performance is depent wich VPS tech will use.

    As i c the other VPS providers for the Xeon, put about 15-20 per CPU .
    EdgeVPS
    http://www.edgevps.com

  7. #7
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    Thanks for the info!
    Alex Melen
    █ Co-CEO at Melen, LLC (dba SmartSites)
    █ Founder of T35 Hosting (established 1997)

  8. #8
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    Btw... migman, are you getting a lot of sign ups / sales from your VPS plan?
    Alex Melen
    █ Co-CEO at Melen, LLC (dba SmartSites)
    █ Founder of T35 Hosting (established 1997)

  9. #9
    I just start the vps selling , untill now i was reselling VPS.
    but as reseller i have in about 1 year and 1/2 some users

    I thing the VPS have ground to grow up....

    And i thing 2 plans a VPS company sould have very big and very small
    plans for $70 and for $20 the user will go for.
    EdgeVPS
    http://www.edgevps.com

  10. #10
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    Hmm.. I was thinking of selling a plan @ 30/mo.. You think its too expensive?

    10gb Space
    100gb BW
    128mb dedicated ram (burstable to 2gb)
    $30/mo
    --- cpanel + $10/mo
    Alex Melen
    █ Co-CEO at Melen, LLC (dba SmartSites)
    █ Founder of T35 Hosting (established 1997)

  11. #11
    depenting of the performance.
    do you run the unix benchmark to check the performance of the VPS you will sell .
    ?
    EdgeVPS
    http://www.edgevps.com

  12. #12
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    What do you mean "performance" ? Performance of the network? That should be outstanding (far above average). Performance of the server? That should also be very good considering its a very high end machine.

    I wish I could make the price lower, but the Virtuozzo liscence is just soo damn expensive.. (And I am not too impressed with the performance of the free VPS systems).
    Alex Melen
    █ Co-CEO at Melen, LLC (dba SmartSites)
    █ Founder of T35 Hosting (established 1997)

  13. #13
    yes I belive the $30 will be very good price.

    for CPanel will be better about 192 MB or more.
    128 will be fine for DA.

    VE how much cost the lic ?
    EdgeVPS
    http://www.edgevps.com

  14. #14
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    I don't believe they are too happy about people discussing it.. but its XX per VPS per month (ie: we are planning to have 30 VPS's). You think 160mb of ram would be enough?
    Alex Melen
    █ Co-CEO at Melen, LLC (dba SmartSites)
    █ Founder of T35 Hosting (established 1997)

  15. #15
    propably will be ok .
    i belive the plan is very good .
    EdgeVPS
    http://www.edgevps.com

  16. #16
    Join Date
    Nov 2003
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    63
    Decent hardware but without prompt, capable support can be had at places like Godaddy.

    Some of the more popular VPS hosts are Servint, PowerVPS, and Liquidweb. They're popular because they offer excellent support, as well as excellent hardware, uptime and features.

    Where will your services fit into this mix?
    Jack.

  17. #17
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    Good question... I don't know what kind of support quality I can provide at those prices.. It would pretty much be our current support staff which is already nearing capacity. Hmm..

    Any ideas anyone?
    Alex Melen
    █ Co-CEO at Melen, LLC (dba SmartSites)
    █ Founder of T35 Hosting (established 1997)

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