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How is the hosting market currently?

At the moment, would there still be opportunity for a hosting company to grow?

«1

Comments

  • forestforest Member
    edited October 3

    Oh definitely. RAM is soooo cheap, and electric companies are practically paying you to use their power.

    And most customers, especially those from China, are extremely respectful and understanding of mistakes.

  • FubukiFubuki Member

    It's on fire and like hell. nothing you can do about it

    Thanked by 1host_c
  • Despair.

  • rpqurpqu Member

    Grow? Sure

    Thanked by 1host_c
  • slowserversslowservers Member, Host Rep

    I hope it's workable! I started in January and have been slowly but steadily onboarding new customers.

    Still burning about $500/month, though.

    Thanked by 3host_c mrTom kuroit
  • virtual hell on virtual earth

    Thanked by 1whiterider
  • nikionikio Member

    Can you host H200s / GB300s? Then sure, there's ample room to grow!

    Thanked by 2host_c mrTom
  • host_chost_c Patron Provider, Top Host, Megathread Squad
    edited October 3

    @nameserver said:
    At the moment, would there still be opportunity for a hosting company to grow?

    Ok, let me be blunt on this

    No.

    Either you accept a 12 month loss before anything can or could happen, or just walk away….

    Please, do yourself a good thing, walk away for the moment :D

    @rpqu said:
    Grow? Sure

    In height right?, or grow fruits and vegetables.

    @slowservers said:
    I hope it's workable! I started in January and have been slowly but steadily onboarding new customers.

    Still burning about $500/month, though.

    Lucky you for burning only 500 USD/Mo, the envy I have now :D

    Thanked by 2jsg kuroit
  • kukara4kukara4 Member, Patron Provider

    Sure, it's easy:

    1. Rent a dedi, install Virtualizor on it.
    2. Sell 32GB VPSes for $13 with "unmetered" bandwidth.
    3. Hope nobody actually uses what they paid for.
    4. Blame customers when they do.
    5. ???
    6. Profit.
  • @nameserver said:
    At the moment, would there still be opportunity for a hosting company to grow?

    With all the vibe coders right now, i think its booming like crazy. All want to have an app or an website. Most ai solutions tend towards a vps.

  • rpqurpqu Member

    @host_c said:

    @rpqu said:
    Grow? Sure

    In height right?, or grow fruits and vegetables.

    By revenue lol, As for profit, it declines

    Thanked by 1host_c
  • TrKTrK Veteran

    Ban MJJs and you might survive the market.

  • HostDZireHostDZire Patron Provider, Veteran

    I think this is the worst time start a new company. Even recovering investment would be hard.

    Thanked by 2jsg kuroit
  • jsgjsg Member, Resident Benchmarker

    Of course there still is opportunity for a hosting company to grow. In the LE market though I'm doubtful.
    And frankly, the fact that you need to ask that question, leads me to "NO".

  • servers_guruservers_guru Member, Patron Provider
    edited October 3

    If you don't try to offer LET prices it's not too bad. Good luck with 7$/y though.

  • forestforest Member
    edited October 3

    @forest said:
    Oh definitely. RAM is soooo cheap, and electric companies are practically paying you to use their power.

    And most customers, especially those from China, are extremely respectful and understanding of mistakes.

    Joking aside, if you are actually interested in hosting, my suggestion would be to buy some cheap white-label reseller package with monthly payments from an established and friendly provider and set up your own site. That puts a cap on your potential losses because the investment is minimal and all the hard work is being done by someone else. It also, however, limits the potential profit to be made. But that's fine if you're just learning. Limiting the damage is more important.

    If you outgrow that, then consider renting a cheap dedi with an E5 or something, installing PVE, and selling VPSes more directly. And if you find that you're actually doing well and handling catastrophes and hardware failures when they occur and want to expand, then buy another node or two. But only when it's financially reasonable.

    But don't jump straight into having your own colocated hardware on your own network. Even if the market was doing amazing and things were cheap, jumping straight in would be a stupid idea. The amount of money required to run even a decently-sized hosting company is staggering from upfront investments alone.

    Thanked by 1OpaqueRegistrant
  • NeoonNeoon Community Contributor, Veteran

    Always.

    Thanked by 1classy
  • blame AI

  • NeoonNeoon Community Contributor, Veteran

    @Andy10tbit said:
    blame AI

    I would go and blame the guy, that leaked covid from the lab.
    The shitload of money the printed, fuck inflation.

    Thanked by 1nikio
  • forestforest Member

    @Neoon said:

    @Andy10tbit said:
    blame AI

    I would go and blame the guy, that leaked covid from the lab.
    The shitload of money the printed, fuck inflation.

    The price increase of RAM has way outstripped the pace of inflation.

    Thanked by 1rpqu
  • @rpqu said:

    @host_c said:

    @rpqu said:
    Grow? Sure

    In height right?, or grow fruits and vegetables.

    By revenue lol, As for profit, it declines

    By volume yes, By revenue yes, by profit Noooo. Small companies are suffering.

  • NeoonNeoon Community Contributor, Veteran

    @forest said:

    @Neoon said:

    @Andy10tbit said:
    blame AI

    I would go and blame the guy, that leaked covid from the lab.
    The shitload of money the printed, fuck inflation.

    The price increase of RAM has way outstripped the pace of inflation.

    Yes, but covid already made it worse, shit was so cheap before.

  • I don't think this year any provider will offer BF prices in BF....

  • HostDZireHostDZire Patron Provider, Veteran

    @anubhavhirani said:
    I don't think this year any provider will offer BF prices in BF....

    If I recall, last year there were also almost no interesting offers.

  • HostDZireHostDZire Patron Provider, Veteran

    @forest said:

    @forest said:
    Oh definitely. RAM is soooo cheap, and electric companies are practically paying you to use their power.

    And most customers, especially those from China, are extremely respectful and understanding of mistakes.

    Joking aside, if you are actually interested in hosting, my suggestion would be to buy some cheap white-label reseller package with monthly payments from an established and friendly provider and set up your own site. That puts a cap on your potential losses because the investment is minimal and all the hard work is being done by someone else. It also, however, limits the potential profit to be made. But that's fine if you're just learning. Limiting the damage is more important.

    If you outgrow that, then consider renting a cheap dedi with an E5 or something, installing PVE, and selling VPSes more directly. And if you find that you're actually doing well and handling catastrophes and hardware failures when they occur and want to expand, then buy another node or two. But only when it's financially reasonable.

    But don't jump straight into having your own colocated hardware on your own network. Even if the market was doing amazing and things were cheap, jumping straight in would be a stupid idea. The amount of money required to run even a decently-sized hosting company is staggering from upfront investments alone.

    Yes, those are very good steps you have suggested.
    It applies to every business. Start small, see if you can make a profit, then grow using the profit you make. After 1-2 years, when you can more easily see fewer chances of loss, then you can invest more from your pocket to go big.

    Till now, I have not invested anything from my own pocket.
    100$ was the investment when I started. I bought a dedicated server and started offering shared rdp service. Then I increased the server using the profit I made, and the same thing till date.

    The most important thing is you should know how to sell. If you can get good customers, making a profit has a good chance. Do not rely on LET or any other alternative website where lots of good deals are posted, I mean dirt cheap deals. These websites are to clear stock, not to make good profit. Currently, I clear 50% of stock using LET and the rest I sell using the website.
    If I go 100% on LET or a similar forums, then we would be out of business within 6 months.

    Thanked by 2forest rpqu
  • rpqurpqu Member

    @HostDZire said:
    The most important thing is you should know how to sell. If you can get good customers, making a profit has a good chance. Do not rely on LET or any other alternative website where lots of good deals are posted, I mean dirt cheap deals. These websites are to clear stock, not to make good profit. Currently, I clear 50% of stock using LET and the rest I sell using the website.
    If I go 100% on LET or a similar forums, then we would be out of business within 6 months.

    So, no chance of 32G $32/y ever again?

    Thanked by 1host_c
  • HostDZireHostDZire Patron Provider, Veteran

    @rpqu said:

    @HostDZire said:
    The most important thing is you should know how to sell. If you can get good customers, making a profit has a good chance. Do not rely on LET or any other alternative website where lots of good deals are posted, I mean dirt cheap deals. These websites are to clear stock, not to make good profit. Currently, I clear 50% of stock using LET and the rest I sell using the website.
    If I go 100% on LET or a similar forums, then we would be out of business within 6 months.

    So, no chance of 32G $32/y ever again?

    No never again :/
    I see I have made many mistakes in the past :#

    Thanked by 2rpqu host_c
  • Selling idle stock for cheap is one thing and making profit of regular sale is another thing.

  • kukara4kukara4 Member, Patron Provider

    @HostDZire said: No never again

    I love donations

    Thanked by 2HostDZire host_c
  • The hosting market is a shower, not a grower.

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