How to calculate budget for web hosting business?

One of the recent IT trend in Kerala is the increased interest in web hosting business. Software developers and graphic designers find hosting as an added advantage for their income generation. As recession in US developed, outsourcing business chances decreased. IT firms are still be in the cautious stage due to the lack of sufficient business agreements. Then to engage in web designing and hosting is a solution for them to survive.

How can we calculate a budget for starting a web hosting business in an economical way? Beginers in this field may think that charges for reseller account or dedicated server is the major part of total expense. But it is a misconcept only. We can hire a dedicated server even at just Rs.5000 per month. But just setup a dedicated server or signed up for a reseller hosting is only small part of our effort. We have to maintain servers in good way. Good way here I means, includes installation and maintenance of firewalls both in physical and software way, 24hr monitoring, instant updation or patching whenever a bug identify etc.

We can do some remote monitoring, but it never give us a guarantee on the server uptime. We must have a dedicated team at datacenter in order to maintain our servers. Actually the cost for assigning a good server management team is higher than that of leasing a server. To invest or utilise money on this matter is the prime budget comsumption of a good web hosting company. Appointing and training well qualified support professional is also the major part of a hosting budget. We can attract more customers by sufficient marketing. But keeping them as our customers in long run needs better support wing. Existing customers will be a catalyst for your business. Is it a forward or backward? Answer will be the result of your existing support desk. So dont be stingy on the matter of support expense.

Marketing and smiling comes last.

Here I just try to point out some facts on hosting business. For your reseller hosting requirements, visit bharathnet.com, a kerala based web hosting providers from Kochi.

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