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Heng Chai
31-01-2003, 13:54
This is a PM that jason sent me today. I figured its a good topic to put out to the public.


jason wrote on 31-1-2003 10:07 AM:
ask u to start out at a data centre.. i believe you did some research.. which 1 do u think i can go for quarter rack for a startup business like me and bandwidth is still so call value for money one..?


Startup? It all depends on 2 things.
1. How much $$ you have to burn. The more you have, the better your startup.

Comparisions:
Sharing/getting colocation with another company
vs
Getting direct from ISP

Sharing/getting from another company comes cheap, the cost of the space you actually use + bandwidth only. That comes to about $100-200 per U depending on the upstream, with inforev even offering $88. That's how cheap it can get.

Getting direct from ISP, you can expect to pay from at least $500 per month not including massive setups of $500 and above for a bare 10U with 10mbps shared.

The difference is that, paying cheap means you have to rely on them for everything. If they screw up, you're dead. And the probability of them screwing up is definately higher than the ISP screwing up. Pay more for a good night's rest or pay less and take the risk.

For server, also the same. Buy a P4 Xeon and burn $4000 at a go, or spend $1000 and get a simple 1U server. The difference will come when you have enough customers. I have seen my 1U server crawl even though it has 1GB ram and running a P3-1GHz cpu. And it has less than 100 sites hosted. (That was when I had to move sites to a backup server and move the server to STIX).

2. How much you know. If little or none, how much do you want to spend to hire someone?

Server maintainance isn't your everyday cup of tea. Its not just click here and there and expect things to work. Even installing a good control panel may not get you everywhere. Don't think of pulling off a server just knowing how to use telnet/ssh. Its barely the basics.

If you pay someone to do it, its going to eat into your budget, depending on how much he demands. Chances are you aren't going to hire him for once only, so it might be either a few times a month or long term.

Finally, the easiest and safest way to startup is still getting a reseller account from a reliable provider. It will benefit in the short term while you build up your customer base, get enough cash for expansion plus take time to learn how to handle the server. Then its a good time to expand to either a dedicated server or colocation.

jason
31-01-2003, 14:36
so for a startup, get from qala 10u.. is it worth it? i feel its the cheapest from what i have check with singnet and pacnet..

Heng Chai
31-01-2003, 14:49
Qala. Then I wish you all the best of luck. Its no doubt the cheapest available right now, but without 24/7 onsite staff and proper security checks, its not somewhere I'm going to recommend.

jason
31-01-2003, 14:52
alright so which is the cheapest one that u recomend that at least has the necessary stuffs?

Heng Chai
31-01-2003, 15:06
The Inforev one seems cheap. But I have no idea on their history and other details. I was told of Inforev just recently by a friend who wants to try them out. You really gotta ask around if anyone else knows about them.

For the others, you have to hunt around. Some of the Starhub colocated customers should be able to host you cheaply.

jason
31-01-2003, 15:08
i mean directly thru isp..which one cheapest and average service.. except qala.. the next cheaper 1.. d1?

Heng Chai
31-01-2003, 15:12
D1 I'm not too sure. I think Junpei is the right person to ask. I hosted there for 3 months a long time ago. I'm not sure about their network now but I didn't check with them when I was looking for a new place to move recently.

jason
31-01-2003, 15:22
so which isp do you recommend cheapest startup cost for isp colocation plus service so so one..no need to be premium

Heng Chai
31-01-2003, 16:01
Anyone can recommend him?

I can't help you here. The quotations I requested are all from premium providers. Min is $1k odd.

Zoomer
31-01-2003, 17:24
1k odd for how much space?

If its not confidential, could you list it out?

jason
31-01-2003, 18:51
my fren has a pte ltd company.. he offer to let me use his office and stuffs even letterhead and company name to do webhosting..he oso doing IT business.. he charge me 20% comission from those that i sell.. you guys think its a good deal?

Junpei
31-01-2003, 19:00
Originally posted by jason
my fren has a pte ltd company.. he offer to let me use his office and stuffs even letterhead and company name to do webhosting..he oso doing IT business.. he charge me 20% comission from those that i sell.. you guys think its a good deal?

Hmm i think not bad deal loh.
IF need colo look out for me too i also doing it.Keke

jason
31-01-2003, 19:13
even if client call the office he also will ask the client to call me.. his office has 4 staff and those standard stuffs like pc and stuffs

chin
31-01-2003, 19:14
why not get him as a partner?

Junpei
31-01-2003, 19:38
Originally posted by chin
why not get him as a partner?

Good idea keke...

jason
31-01-2003, 19:41
still wondering if its a good deal? should i negotiate the comission lower and stuff?

Junpei
31-01-2003, 20:00
Originally posted by jason
still wondering if its a good deal? should i negotiate the comission lower and stuff?

Hmm depend on you calcuate the profit left after gone to him
keke

jason
31-01-2003, 21:10
or can i announce to the world i am doing it parttime and base on a low price model .. telling people i got full time job this is parttime..

Heng Chai
31-01-2003, 22:20
Its all up to you. We can't help you make any decisions or do your maths homework for you.

If you really want to work with that guy, make sure you get a lawyer to write a contract between you two to state the issues involved and profit sharing. The issues would revolve around clients and servers also. Reason is very simple, to prevent him from backstabbing you. He has all the right to legally put you out because you are a "staff" of the company and since you are doing everything under the company's name, he has all the legal rights to take everything. Yes, you can go fight it out with him and claim back, but its tedious and expensive.

As for starting out, you can learn from james and sinnerzone. I believe both of them are "parttime" and "based on a low price model". Their experience should be good to help you get going.

royong
02-02-2003, 00:34
Jason, most of the posts you have made revolve around the term "CHEAP"

Now I know that it could be because your are looking into establishing a webhosting business on a part-time basis and hence have budget contraints ... but a word of caution. In the coming year ie 2003, SGWHT will primarily focus its effort on recuiting members on a consumer basic - hence the emphasis will be on recruiting members whom are in need or whom are actively looking for a web host provider. With you "flushing" SGWHT with threads and questions revolving around "CHEAP" .... that doesn't warranty a good begining to a new startup .. does it ?

PS - Search is you friend. Alot of the colocation questions you are asking now has already been answered before. SG.GS has been doing a fanastic job of answer your questions ... so on your part, I think it would be appropriate to offer your appreciation wheneve appropriate.

Zoomer
02-02-2003, 02:01
I can't help but agree.

Cheap. Yes, but how are you going to cover your margins? Remember to factor in your own time too.

It would be great if SGWHT does get more consumers. However, as consumers, they may need more support.

Junpei
02-02-2003, 02:25
Originally posted by Zoomer
I can't help but agree.

Cheap. Yes, but how are you going to cover your margins? Remember to factor in your own time too.

It would be great if SGWHT does get more consumers. However, as consumers, they may need more support.

Zoomer right and agree too.

royong
02-02-2003, 22:27
Yes. That will the major area of concentration for the SGWHT management team in year 2003. We will be announcing some of our plans later in the year. Thank you for your continuous support.