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  1. #1

    Question Offering Dedicated Servers


    I am wanting to start offering dedicated servers through my web hosting company.
    What do you think I should consider to get this going?
    Can I sell dedicated servers from a reputable company that already sells them but at a different price for me to make money?

    What are your ideas?



  2. #2
    Join Date
    Aug 2006

    Most dedicated server companies will offer discounted pricing for resellers. There are some things you need to decide first:

    1.) How much support do you want to provide to the customers? How much support to you want the datacenter to Provide?
    2.) Your customers will be able to know what DC you are buying from. Do you want to promote this or do you want to act more like your own shop?

    A lot of companies buy servers from unmanaged or semi-managed providers, add on custom software and higher-end management, and resell them for more than the original DC charges. Others choose to drive a hard bargain and resell the servers at or just below the price charged by the original DC. Some choose to provide end-to-end support. Others even arrange to have thier new customers submit tickets directly to the DC selling them the servers. No matter what end of the spectrum you want to be on, there is a way to get it done.

    The decision is yours. I would advise figuring out what kind of customers you think you can get and how you think you can best compete. Shop around to a bunch of datacenters. Just let them know what you are thinking about doing and how many servers you project having and most will respond back to you with something that will be mutually beneficial.

    Good luck.
    Caro.Net: Support is everything
    Offering High Quality Dell Dedicated Servers since 1995

  3. #3
    Thanks for your feedback, caronet! What do you think would be the best approach if I wanted to act more like my own shop?


  4. #4
    Join Date
    Feb 2006
    New York
    There are 3 ways to 'offer' dedicated servers to your customer base:

    #1) Affiliate resale (your customers basicaly become customers of the underlying datacenter, and you get a monthly commission check). Advantage is you don't have to worry about billing or support, but less margin.

    #2) Straight Resale (you buy the server(s) but provide the billing, and possibly some extra support). Advantage is you can make more margin per sale, BUT it requires more work in some cases. BIG DISADVANTAGE: You are on the hook to the datacenter financialy, if a customer is late or stiffs you, you are out the money.

    #3) Your own Physical servers (you buy your own servers, racks, datacebter, bandwidth). You can start with as little as a 1/4 rack colocation and put in a few servers, or build your own datacenter and go that route. Depends on the budget and plans of course. Advantages include highest possible margin, but the most level(s) of work and highest costs (need your own switch, routers, firewalls etc as you grow and grow - to start with you can get away pretty cheap though).

    Good luck on the business venture.
    TurnKey Internet, Inc : phone 1.518.618.0999 and 1.877.539.4638 | Contact Us
    Cloud Servers | Dedicated Servers | Colocation | VPS | Mail Services | Reseller hosting
    New York / East Coast Green Datacenter

  5. #5
    Join Date
    Apr 2006
    Mandaluyong, Philippines
    Quote Originally Posted by SurfWebTech

    I am wanting to start offering dedicated servers through my web hosting company.
    What do you think I should consider to get this going?
    Can I sell dedicated servers from a reputable company that already sells them but at a different price for me to make money?

    What are your ideas?


    How large is your hosting company now? Are you thinking of offering them just so you have them available for your long term clients, or is this a new product line that you want to aggressively market?

    The folks who have replied thusfar are 100% dead on. Its probably best that you find a data center that has a good reputation and strike up a deal with them so you can launch your own private label brand of servers.

    Here's some advice :

    Start out with just a few kinds. Don't offer up a whole smorgasboard from the start. Too many offerings on your site will cause people to click through all of your deals yet not purchase quickly if at all. Develop 3 - 5 offerings , something for everyone and take some time to research them. Get to know the kind of boards your DC will be selling, chipsets, benchmarks of the CPUs you offer, type of RAM, etc. Put this data in easy to understand terms on your site.

    Spec out in plain english what each of your offerings will, or will not do. For example, let people know that attempting to put 300 php/mysql intense sites on a celeron 2.4 may not be a great idea.

    Find a data center that allows you to be as self sufficient as possible. Get one that offers APC remote reboot ports, KVM over IP / etc with the servers you purchase. This lets you work on customer's issues immediately rather than relying on your data center to do it.

    Be sure to know in advance what your data center's abuse and disconnect policy says, as well as hardware replacement SLA (if any). Your customers are going to be asking you how long it would take to swap out a bad drive or chassis, its good to have accurate information handy.

    Watch out for fraud, verify all of your orders and don't be shy to request a photo ID.

    Best of luck to you

  6. #6
    Depending on how much hands on attention you want to give your customers personally, you can justify charging more if you are willing to provide "managed services" yourself.
    Steve Eschweiler- Hivelocity- Director of Operations
    Bare Metal Servers. Colocation. Private Cloud.
    Customers in over 130 countries. Privately owned and operated data centers.
    Limited Supply Outlet Server Specials

  7. #7
    The problem I got in the past reselling servers, it's that if you customer don't pay you, you still have to pay the bill with the datacenter.

    In my case was a $800 bill, that finally was paid by the customer, but it's a thing to think about.

    P.D. now I don't resell servers but I'm looking for another option, perhaps doing colocation. honest european provider

  8. #8
    yes, thats definately something to keep in mind
    SurfWeb Technology
    Linux Hosting | Web Designs | Dedicated & Colocation Servers

  9. #9
    Join Date
    Aug 2006
    You could try being a LT reseller, it's pretty good!
    █ Tech-Hosts
    █ UK Shared Hosting, Reseller Hosting, VPS & Dedicated Servers

  10. #10
    Capitalize on your forte, what separates you from the rest. Have a reason to come to YOU for the buisiness and market on that aspect.

    Good Luck.
    Caro.Net: Support is everything
    Offering High Quality Dedicated Servers.

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