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Depends on the needs of a host.
Vague question, vague answer.
I guess my biggest question would be in relation to storage.
Like I said, it depends. How many VMs are you hosting? Average disk size per VPS?
Depends on the amount and quality of storage you want.
Let say... 42!
Yet again. 42 is the correct answer.
How long is a piece of string?
End-to-End.
This big.
Multiply the amount of vms by the average amount of memory. That's the amount of memory the host needs.
Multiply the average storage per vm by the amount of vsm. That's the amount of storage the host needs.
Multiply the average cpu usage by the amount of vms. Double it, thats the amount of cores you need.
Typical node consists of all of the below
CPU
memory
storage media
fans
Others have bells and whistles, but this isn't strictly required.
Let's assume you don't oversell - just to begin.
You have an Intel E3 based host with 4 cores and 8 threads. The server costs you $80 a month to lease from say @clouvider and you want to make a 50% margin. Your target is $120 in revenue, but you probably want some buffer on resources and better estimate revenue. Let's say you target 80% utilization to hit that $120 revenue.
Now you sell a single product - the " @WSS Rocket VPS " - a 2GB ram, 1 vcpu dedicated VPS. You can fit 8 of these on a host, and you offer 40gb of disk space. You need roughly 40*8 + 50 GB or 370GB of disk space. Minimum. You will want raid1 unless you are trying to be the next Vultr, so figure two 480-600gb disks. Since you are only selling 8 VPS at 2GB of ram, 24-32GB of ram on the node would provide nice caching.
Now you wanted to make $120/m, but only target 80% uilization so let's do the math at say 7 VPS per node. $120/7 means you need to sell each VPS for $17.14/m. Any less than 7 active VPS you cut into your margin. Sales and give aways cut into your margin, as do charge backs.
If you get these numbers wrong, you Deadpool like @serverhand.
Take home assignment:
Most hosts share cores/threads and oversell CPU. They also might oversell disk, and if they like to live dangerously ram. Figure out how to use the cost, revenue expectations, realistic utilization points, and what the market demands for price points.
How do things like the cost of IP's, Panel Software and Support factor in. Add these to an Excel revenue model.
Write an essay on "why I want to be a summer host".
Lookup pricing on E5 based hosts and figure out what your ROI might be at various price points.