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Do most of LET providers run their own DC?
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Do most of LET providers run their own DC?

GreenWoodGreenWood Member
edited December 2022 in General

Hey,

Just curious, do most of LET providers have their own DC or they are a reseller of big providers such as OVH, Hetzner...?

Do you think running your own DC is something you could consider? or you prefer to be just a reseller?

Thanks!

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Comments

  • MikeAMikeA Member, Patron Provider

    When you say "DC" are you wanting to know if the provider owns their own physical building? Most just lease racks/cabinets or use rented hardware.

    Running a DC requires a huge amount of money unless it's a ShedDC.

  • WoodenRackDC

    Thanked by 2lanefu WebProject
  • @MikeA said:
    When you say "DC" are you wanting to know if the provider owns their own physical building? Most just lease racks/cabinets or use rented hardware.

    Running a DC requires a huge amount of money unless it's a ShedDC.

    Sorry for the confusing.

    As I know, a hosting business can be a reseller of other big providers, for example they rent a server then split it into VPS instances.

    Some big players just run their own DC, like run their own hardware and network in their own physical building.

    By saying "rented hardware" do you mean renting a physical hardware then host it in their DC? or you mean just renting a dedicated server?

    Sorry, I'm still new to this and interesting to know more about running a hosting business.

    Thank you!

  • Also, what do you mean by "lease racks/cabinets"?

  • ninjatkninjatk Signature Restricted

    who cares if you own the building or not, all customers happy is with who they can be trust, and we know someone could take care of it for us. no need to be a DC to do that.

  • @JabJab said:
    WoodenRackDC

    You are hired.

  • jmgcaguiclajmgcaguicla Member
    edited December 2022

    @GreenWood said:
    As I know, a hosting business can be a reseller of other big providers, for example they rent a server then split it into VPS instances.

    Some big players just run their own DC, like run their own hardware and network in their own physical building.

    It doesn't have to go big or go home; colocation is a thing, a middle ground between reselling hardware and owning the DC.

    Thanked by 1PulsedMedia
  • @ninjatk said:
    who cares if you own the building or not, all customers happy is with who they can be trust, and we know someone could take care of it for us. no need to be a DC to do that.

    So do you think that most providers just rent a dedicated servers virtually from big companies and resell it?

    I'm just so curious about how things work in this industry. I just wanna know all the options/possibilities to run a hosting business.

    For example, I see some big players on LET such as Racknerd, Buyvm (by Francisco)...

    I have no idea if they really own their DC or they are resellers.

  • ninjatkninjatk Signature Restricted
    edited December 2022

    @GreenWood said:

    @ninjatk said:
    who cares if you own the building or not, all customers happy is with who they can be trust, and we know someone could take care of it for us. no need to be a DC to do that.

    So do you think that most providers just rent a dedicated servers virtually from big companies and resell it?

    I'm just so curious about how things work in this industry. I just wanna know all the options/possibilities to run a hosting business.

    For example, I see some big players on LET such as Racknerd, Buyvm (by Francisco)...

    I have no idea if they really own their DC or they are resellers.

    every person have their own role in it industry, if you like to go with big guy go ahead, no one blame that, carefully read the comment and understand it is the key, people would like to purchase from someone they trust, someone could take care for their online home, not only how big or small they are.

    If someone realy small, small guy who reseller product, but his mind are good, talent, and good cares, i dont mind to quit big and go for small.

  • jarjar Patron Provider, Top Host, Veteran
    edited December 2022

    Everyone's a reseller of something. Even if you have to bend a little bit to draw that conclusion, it isn't hard to do. But I'd say average expectation is owned hardware in rented racks, for LET hosts.

    I'd bet on a nearly even split between renting racks from a DC customer and renting directly from the DC.

    Thanked by 2PulsedMedia greentea
  • @jmgcaguicla said:

    It doesn't have to go big or go home; colocation is a thing, a middle ground between reselling hardware and owning the DC.

    So they are doing colocation? Is it that hard to run your own DC? IMO, colocation is a costly option.

  • yoursunnyyoursunny Member, IPv6 Advocate

    We have own data center in Antarctica.

    I think @PulsedMedia and @Calin and @DataIdeas-Josh have own data centers too.

    Providers with many different locations, more often than not, lease several racks in each location.
    Even if they provide colo, it could be for the empty space in their rack.

    Providers with only VPS service but no dedicated server, more often than not, lease just a few servers.

  • @GreenWood said:
    colocation is a costly option.

    So is building a DC... in a foreign country.

    Thanked by 1lentro
  • @jar said:
    Everyone's a reseller of something. Even if you have to bend a little bit to draw that conclusion, it isn't hard to do. But I'd say average expectation is owned hardware in rented racks, for LET hosts.

    I'd bet on a barely even split between renting racks from a DC customer and renting directly from the DC.

    What do you mean by "rented racks"? You mean, they rent a building or colocation?

  • jarjar Patron Provider, Top Host, Veteran

    @GreenWood said:

    @jar said:
    Everyone's a reseller of something. Even if you have to bend a little bit to draw that conclusion, it isn't hard to do. But I'd say average expectation is owned hardware in rented racks, for LET hosts.

    I'd bet on a barely even split between renting racks from a DC customer and renting directly from the DC.

    What do you mean by "rented racks"? You mean, they rent a building or colocation?

    I'd say "colocation customer" is a good alternate way to say what I mean. Some colocating with other hosting providers, some in direct contract with the facility itself.

  • @ninjatk said:

    @GreenWood said:

    @ninjatk said:
    who cares if you own the building or not, all customers happy is with who they can be trust, and we know someone could take care of it for us. no need to be a DC to do that.

    So do you think that most providers just rent a dedicated servers virtually from big companies and resell it?

    I'm just so curious about how things work in this industry. I just wanna know all the options/possibilities to run a hosting business.

    For example, I see some big players on LET such as Racknerd, Buyvm (by Francisco)...

    I have no idea if they really own their DC or they are resellers.

    every person have their own role in it industry, if you like to go with big guy go ahead, no one blame that, carefully read the comment and understand it is the key, people would like to purchase from someone they trust, someone could take care for their online home, not only how big or small they are.

    If someone realy small, small guy who reseller product, but his mind are good, talent, and good cares, i dont mind to quit big and go for small.

    Yes you are right! I don't underestimate the small players either. But, isn't bad to own your DC and control your stuff rather than rely on a parent company.

  • jarjar Patron Provider, Top Host, Veteran

    Also of interesting note, I feel like companies that rent racks directly from the data center itself tend to more closely refer to said data center as "theirs" and probably rightfully so, since they have far more ability to negotiate power, upstream, etc. Even though it's not that they literally built a building.

  • hyperhostsolutionshyperhostsolutions Member, Patron Provider

    @GreenWood said:

    @ninjatk said:
    who cares if you own the building or not, all customers happy is with who they can be trust, and we know someone could take care of it for us. no need to be a DC to do that.

    So do you think that most providers just rent a dedicated servers virtually from big companies and resell it?

    I'm just so curious about how things work in this industry. I just wanna know all the options/possibilities to run a hosting business.

    For example, I see some big players on LET such as Racknerd, Buyvm (by Francisco)...

    I have no idea if they really own their DC or they are resellers.

    if your a smaller host you would more than likley be reselling another Larger DC's Servers and infrastructure and branding it as yours,

    if you are a stable hosting company who has been running for a handful of years you proberlly have your own hardware and renting colocation space in a DC or Multiple , very much doubt and LET Providers have there Own DCS

    that is a very large outlay.

  • @yoursunny said:
    We have own data center in Antarctica.

    I think @PulsedMedia and @Calin and @DataIdeas-Josh have own data centers too.

    Providers with many different locations, more often than not, lease several racks in each location.
    Even if they provide colo, it could be for the empty space in their rack.

    Providers with only VPS service but no dedicated server, more often than not, lease just a few servers.

    I got your point.

    So do you think providers with dedicated servers are mostly the owner of their DC or at least they own the hardware and doing colocation or something, yeah?

    Also, what do you mean by rack?

  • Also, I would like to know, what is the affordable option for a dedicated server hosting business, to run your own DC/hardware or just rent few servers from lets say OVH?

  • @jmgcaguicla said:

    @GreenWood said:
    colocation is a costly option.

    So is building a DC... in a foreign country.

    But it doesn't need to run it in a foreign country, nah? I mean, some providers only have single location.

  • jarjar Patron Provider, Top Host, Veteran

    @GreenWood said:
    Also, I would like to know, what is the affordable option for a dedicated server hosting business, to run your own DC/hardware or just rent few servers from lets say OVH?

    Most affordable road in is to rent a dedicated server. Most affordable spread over time is probably to colocate with an established hosting provider who has empty rack space. Building a system is more money up front than renting one for a month, obviously.

  • jmgcaguiclajmgcaguicla Member
    edited December 2022

    @GreenWood said:
    But it doesn't need to run it in a foreign country, nah? I mean, some providers only have single location.

    The answer is still valid even if you remove that part. I think you're underestimating what physically building a DC entails.

  • @jar said:

    @GreenWood said:

    @jar said:
    Everyone's a reseller of something. Even if you have to bend a little bit to draw that conclusion, it isn't hard to do. But I'd say average expectation is owned hardware in rented racks, for LET hosts.

    I'd bet on a barely even split between renting racks from a DC customer and renting directly from the DC.

    What do you mean by "rented racks"? You mean, they rent a building or colocation?

    I'd say "colocation customer" is a good alternate way to say what I mean. Some colocating with other hosting providers, some in direct contract with the facility itself.

    Oh I see. do you think that is much better than just be a reseller of other providers? meaning you own no hardware/rack.

  • You're throwing DC around like that, like its nothing. Its a big deal to have own building and dealing with multiple network providers, multiple power providers, as you can't just have one and then be offline when there are issues. Having the building "fireproof" and ready in events of anything. Its not a small feat, and unless you are a really big provider it's not worth it. It's a really big investment.

    There are some providers here that have own datacenter of course, but most lease space / collocate their hardware in another datacenter, and some lease the servers themselves and resell those.

    Thanked by 1PulsedMedia
  • @jar said:
    Also of interesting note, I feel like companies that rent racks directly from the data center itself tend to more closely refer to said data center as "theirs" and probably rightfully so, since they have far more ability to negotiate power, upstream, etc. Even though it's not that they literally built a building.

    Ohh, so that is how big LET providers are running their stuff? How safer is renting rack/colocation when it comes to security?

  • aquaaqua Member, Host Rep
    edited December 2022

    I do not run my own DC. I run out of a DC with my own hardware.

    Running DCs isn't as easy as before, because of all the new technology that wholesale Datacenters have. In the long run, it's easier to lease from them.

    Having a ton of transits, cooling, redundancy, and power available is a perk that takes a major hassle off the company's hands.

    Edit: Also the price of real estate, lumber, and all other supplies has sky rocketed in recent years. Getting a well-built datacenter with all of those things can cost millions, and even close to billions. Getting space in a major city like Dallas, Chicago, New York City, Los Angeles, and Miami is nearly impossible.

    Thanked by 1yoursunny
  • @Jasonhyperhost said:

    @GreenWood said:

    @ninjatk said:
    who cares if you own the building or not, all customers happy is with who they can be trust, and we know someone could take care of it for us. no need to be a DC to do that.

    So do you think that most providers just rent a dedicated servers virtually from big companies and resell it?

    I'm just so curious about how things work in this industry. I just wanna know all the options/possibilities to run a hosting business.

    For example, I see some big players on LET such as Racknerd, Buyvm (by Francisco)...

    I have no idea if they really own their DC or they are resellers.

    if your a smaller host you would more than likley be reselling another Larger DC's Servers and infrastructure and branding it as yours,

    if you are a stable hosting company who has been running for a handful of years you proberlly have your own hardware and renting colocation space in a DC or Multiple , very much doubt and LET Providers have there Own DCS

    that is a very large outlay.

    That is the answer that I was looking for. You upgrade when you outgrow.

  • @jar said:

    Most affordable road in is to rent a dedicated server. Most affordable spread over time is probably to colocate with an established hosting provider who has empty rack space. Building a system is more money up front than renting one for a month, obviously.

    Got you. So interesting.

    Oh yeah! You are a provider too. You mind sharing if you are a reseller (if yes, which provider are you getting your servers) or you do colo/rent racks?

  • @jmgcaguicla said:

    @GreenWood said:
    But it doesn't need to run it in a foreign country, nah? I mean, some providers only have single location.

    The answer is still valid even if you remove that part. I think you're underestimating what physically building a DC entails.

    Not really, I do know that it takes more than money, experience...

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