New on LowEndTalk? Please Register and read our Community Rules.
All new Registrations are manually reviewed and approved, so a short delay after registration may occur before your account becomes active.
All new Registrations are manually reviewed and approved, so a short delay after registration may occur before your account becomes active.
How is the hosting market currently?
nameserver
Member
in General
At the moment, would there still be opportunity for a hosting company to grow?
Comments
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.
It's on fire and like hell. nothing you can do about it
Despair.
Grow? Sure
I hope it's workable! I started in January and have been slowly but steadily onboarding new customers.
Still burning about $500/month, though.
virtual hell on virtual earth
Can you host H200s / GB300s? Then sure, there's ample room to grow!
Ok, let me be blunt on this
No.
Either you accept a 12 month loss before anything can or could happen, or just walk away….
Please, do yourself a good thing, walk away for the moment
In height right?, or grow fruits and vegetables.
Lucky you for burning only 500 USD/Mo, the envy I have now
Sure, it's easy:
With all the vibe coders right now, i think its booming like crazy. All want to have an app or an website. Most ai solutions tend towards a vps.
By revenue lol, As for profit, it declines
Ban MJJs and you might survive the market.
I think this is the worst time start a new company. Even recovering investment would be hard.
Of course there still is opportunity for a hosting company to grow. In the LE market though I'm doubtful.
And frankly, the fact that you need to ask that question, leads me to "NO".
If you don't try to offer LET prices it's not too bad. Good luck with 7$/y though.
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.
Always.
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.
By volume yes, By revenue yes, by profit Noooo. Small companies are suffering.
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....
If I recall, last year there were also almost no interesting offers.
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.
So, no chance of 32G $32/y ever again?
No never again
I see I have made many mistakes in the past
Selling idle stock for cheap is one thing and making profit of regular sale is another thing.
I love donations
The hosting market is a shower, not a grower.