Starting A Hosting Service From Your Home

Since a web server is really just an ordinary PC on a broadband internet connection, can you simply install some web server software and become an instant web hosting business?

You can and there is nothing that prevents someone from doing this, but the approach has serious flaws that should be considered. For instance, bandwidth would be a problem. Broadband is a shared line and as such typically has a contention ratio of 50:1, and is designed mostly for downloading. Typical 512 ADSL lines will only provide 256kbps upload speed, which is only about 5 times the speed of a typical dial up connection. A bandwidth bottleneck would likely kill your business after signing on only a few customers.

Normally, your ISP won't provide a static IP address either, and this can cause some serious problems with locating the sites you are hosting. You would have to constantly monitor the IP address assigned by your ISP and make necessary changes in your DNS so that domain names resolve correctly. The expertise and technical skill required for this maintenance is well beyond your typical and average person.

Connection problems aside, you also have to consider the physical hardware (PC). Do you know how to setup and configure web server software, install and test software upgrades, get web sites installed and be able to effectively manage everything? When something goes wrong, and you can bet it will, are you capable of diagnosing the problem and implementing technical solutions in a timely manner? My guess is that you would have to hire technical support to be available all day and that can be expensive.

Server expertise is required also. You would need to know if the specs of the PC are such that it can handle the demand of the hosted web sites, as well as be prepared to swap out the existing server with a replacement when a disaster occurs. Again, this takes expertise that is way beyond a typical user.

Money is also a very big concern if you intend to provide your clients with popular services such as streaming audio and video, costing as much as $2,000 or more for a server designed for such services.

Reliability is also a key factor worth considering. If your broadband connection is dropped, your hosted sites become invisible. I doubt if you would keep your clients very long if they find their web sites disappearing over night. Unfortunately, purchasing a leased line for more reliability is too cost prohibitive, running somewhere around $10,000.

With all the problems associated with providing a hosting service, it would be insane to start up such a business from your home. It's too risky, and, more importantly, you would be comprimising a client's business.

Setting up a server at home for testing and experimenting, however, makes a lot of sense. Just don't put your client's in jeopardy.


Orangetree Internet Service LLC, located in Santa Cruz, CA., helps small to medium sized businesses setup hosting solutions with business hosting plans, personal site hosting plans, and custom web hosting plans. Contact us at 830-212-1884 for more information.

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