How to start a VPS hosting business

Starting VPS hosting business

In today’s world, the World Wide Web plays a critical role in the day-to-day lives of many people. The number of people who depend on it for maintaining touch with their friends, researching, reserving plane tickets, ordering items, sending documents,  has increased tremendously. As a result, millions of websites have been developed. Consequently, this has created a demand for reliable and quality hosting services.

Shared servers, virtual private servers (VPSs), and dedicated servers are the most common hosting options. Shared servers expose hosted sites to security issues and malware infections. On the other hand, dedicated servers are quite expensive and most small businesses cannot afford. To bridge the gap, a virtual private server offers the capabilities of a dedicated server at a reasonable price. As such, the demand for VPS hosting services has been growing at an impressive rate. In case you are planning to venture into VPS hosting, then you have come to the right place because we have gathered tips that will enable you to make well informed decisions. To succeed in this business, you will need to consider the following key factors:

1- Reasonable pricing plan

 To win and retain customers, you must be able to offer them high quality services at reasonable prices. To come up with a good pricing plan, it is important to research in order to understand how your competitors charge for their services. Doing so will enable you to set a price that is favorable for your business as well as your customers.

2- Quality customer support

 Customers are attracted to hosting companies that offer reliable and quality customer support. Such companies are also able to retain their customers because a reliable 24×7 support translates to minimum downtime. You can either employ a support team or you can opt to outsource support services from a third party. In case you want to ensure that your clients get best quality support services, then employing your team may be the best option.

3- Cost-effective and reliable ISP

To offer high quality VPS hosting service, you will need to have a reliable ISP to provide you with enough bandwidth. You should ensure that you get a provider who has a high up time score. Considering that bandwidth is core to your hosting business, you should make a purchase depending on the number of customers that you expect to have. You can increase the bandwidth as your business expands.

4- Rent or Buy Dedicated Server?

Rent or Buy Servers Hardware?

It is always recommended to start your VPS Hosting business with renting dedicated servers, you can later move virtual machines to your own hardware, dedicated bandwidth, and rack colocation space if you reached the break point to save cost.

To meet the demands of your customers, you will need to research and identify the best dedicated servers for your hosting nodes. You should ensure that you get the best deals in the market as the cost will determine the charges for your services in balance with other factors.

5- Competition strategy

Considering that the market has many players and the competition is usually high, you will need to have a good strategy that will enable you to attract and retain customers. If you are a competitive provider of VPS hosting services, your chances of winning new customers to your pool will be high.

6- Service up time

To provide your customers with uninterrupted services, you will need to make sure your hosting provide a reliable source of power. This will help to ensure that your uptime score remains high and it is unaffected by power outages. Also your hosting provider/Data Center must insure multiply peering with bandwidth upstream provider to avoid internet connectivity outage during fiber cuts or maintenance.

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