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  1. #1

    taking the leap ... an investment for colocation

    Hello everyone,

    I have been researching colocation prices for my server, I bought it from a friend.

    I live in New Jersey, and looking for a data center close by. So far, (and I know it's not much), but I am just scared about the amount of money that I would loose if I fail to gain clients in the first couple months. The current prices for colocating my server seem to range from $200 - $400 a month depending on the data center.

    I just want to hear from those that started with just one colocated server, and have built their business up from there. What I fear, is that I will either never get enough clients to break even, or that the number of clients I get will just never rise above that.

    This would not be immediate, I still need to draft a business plan, I am simply in the pre-planning stage and looking for feedback on your experiences.

    Thank you,

  2. #2
    Join Date
    Jun 2001
    Chicago, IL
    Why dont you start with reselling, build a client database, then move on to colocation, it will give you time to hopefully save some more money and learn the os/extra software
    Chicago Electronic Cigarettes: Tobacco Free, Smoke Free. 3 E-Cig Models, 11 flavors, and accessories.

  3. #3
    Join Date
    Oct 2002
    Reselling is definently the way to start. Who knows, after dealing with the public for a year, you may not want to be in the biz any longer.

    Try to find something with as little (or preferably no) neg. cash flow. Many resellers are hacks (positive reference) and their boxes are pretty up to date with the lates sw so not having root shouldn't be a problem.

    Take it slow, one domain at a time, and when your cash pos. enough to take on your own box, then do so.

    Resellers can make some pretty decent bucks without ever owning their own boxes. Most do it with personal support, and add ons like web dev, script writing....


  4. #4
    Join Date
    May 2001
    Indiana, Florida
    i second reseller account, after your business grow you can transfer your accounts to your own dedicated server easily (with new feature in WHM you don't have to have root password of the server you are transferring accounts from)

    good luck

  5. #5
    Join Date
    Oct 2001
    If you're still looking for an NJ datacenter, check out - they have datacenters in Newark and Hackensack... we use them and would recommend them. Im not sure what their rates are like for individual boxes
    Avi Brender
    Reliable Web Hosting by Elite Hosts, Inc
    CPANEL Reseller Hosting - Fantastico - Rvskins - ClientExec

  6. #6
    Join Date
    Aug 2001
    Orange County, CA
    When we started a few years back, we began by leasing Cobalt RAQs (yeah, ouch, I know ). Within a couple months we were able to drop our own hardware in a dedicated 40U cabinet in the datacenters colo area.

    I assume your $200-400/mo figure is talking about a half cabinet or pre-bandwidth cabinet price. If for a single machine, I definitely consider you continue looking around.

    A full or half cabinet around $200-500/mo (pre bandwidth) won't take you long to break even, assuming you've set yourself apart from the pack and are bringing in business. It's also nice to know you own the hardware, but keep in mind you have nowhere to turn when a piece of hardware fails. In our case everything is redundant (dual processor, 2GB RAM, 160GB RAID-10 per machine), but someone still has to hop into the car to swap out equipment. Make sure you factor that into your decision.

    If you're just getting started, I'd suggest leasing a machine from Rackshack, Rackspace, Host2Own, etc. Build up a customer base, and then drop your own equipment in the IDC.
    Jeff Standen, Chief of R&D, WebGroup Media LLC. - LinkedIn
    Cerb is a fast and flexible web-based platform for business collaboration and automation.

  7. #7
    if you know your way around a linux/*bsd/your favorite os box, i suggest you start by getting a cheap server from rackshack et al.

    you will be in control of the server - no bad host screwing it up for you. you will also be able to cut much better deals than a reseller would.

    just something to think about,
    * Rusko Enterprises LLC - Upgrade to 100% uptime today!
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