While dedicated hosting offers a reliable platform for hosting your site, the cost of infrastructure required can be overwhelming for small and medium-sized businesses. However, there is a better and more cost-effective solution; cloud hosting. Cloud hosting is such an excellent investment for users and the hosts themselves, which is why many people want to veer into it.
However, to stand a better shot at succeeding in your new cloud hosting start-up, you must have at least the basic knowledge of what it is and how to start it. That is where we come in; you will find that our article is loaded with all you need to know about starting a cloud hosting business.
How Profitable is Cloud Hosting Business?
Cloud hosting is, without a doubt, one of the most cost-effective web hosting options. With it, you do not need to worry about recurring large capital investments as you never have to spend vast amounts as upfront capital. Unlike other web hosting types, owners of cloud hosting platforms don’t have to bother with the staggering upfront cost of server software and hardware.
Several reasons have been attributed to the observed spike in interest as regards cloud hosting reseller business. One of such reasons is the rapid developments that have been made in cloud hosting, making it a highly reliable and efficient web hosting option. Another reason is the cost-effective plans loaded with a lot of features business owners need for their sites.
The lack of the usual staggering software and hardware cost makes it easier for you to channel funds to other business aspects. Also, cloud hosting providers experience no shortage of customers seeking to host their websites on their servers. You can become a cloud hosting reseller pretty much in the blink of an eye; yes, it is that easy.
How to Start Cloud Server Hosting in Three Easy Steps
Without a shadow of a doubt, the cloud hosting business offers you many juicy opportunities for growth and overall business success. However, as lucrative as the cloud hosting business is, you must have a basic idea of starting and running it. Our piece will focus on the steps to create a successful cloud server hosting business and tips on what you must consider. Let’s begin, shall we?
Step 1: Getting the Preparatory Stage Down to a Tee
The first phase of starting your cloud hosting business involves quite a lot of seemingly little steps. Beware, these steps, no matter how small they may seem, all add up to the building blocks of your business. Get them right, and you stand a higher chance of your cloud hosting company succeeding.
❖ Draw Up Your Business Plan
For any business to succeed, you must give lots of thought to the business plan. The business plan acts as a guide for your business and provides well-stated goals and objectives you hope to achieve. With a well-written business plan, it is even easy for you to find investors and get loans from banks.
❖ Find Your Niche
Let us be realistic, the competition in the cloud hosting business and web hosting, in general, is fierce. If you intend to stand out from the hundreds of companies offering the same service as you, you must identify your niche. By specifying your niche, you can tailor your hosting services to provide customers valuable features that they can’t find anywhere else.
The reality is that as a new cloud hosting company, you will be unable to compete with the big names for quite a while. But nothing stops you from finding the unique service you can offer that will separate you from the crowd. From there, you can work your way up.
Your niche can be value-added services, nothing too complicated. A few examples are cloud consulting to help clients find the best fit or even running clients NOC.
❖ Research Your Competitors Business Model
As we have mentioned, to break out from the mold, you will need to learn all you can about your competitors’ business model. Research and find out what works for them and areas to improve on. You must gather as much information as you can about your competitors to make it in the fiercely competitive cloud hosting market.
❖ Create Your Cloud Hosting Business Model
The last step in this stage is creating your hosting model by fine-tuning your niche and advertisement strategy. This is where you get to put the finishing touches to your brand logo, domain name, and website. Don’t forget to iron out the details of your pricing plan. You could choose to set your prices lower than your competitors or leave it at the sweet spot where you make just enough profit. Also, this is the stage where you get to sort out your business name and register it.
Step 2: Ironing Out the Details of Your Cloud Hosting Plan
Now that you have tied the loose ends of the preparatory stage, it is time to get down to the main part. There are key components you must have settled if you want to go into the cloud hosting business. We have outlined them below; go through them and tick them off your checklist.
❖ Get the Relevant Certificates
In cloud hosting, certified resellers enjoy a variety of juicy discounts. These discounts can fit your management software, thus allowing you to offer mouthwatering discounts to your clients. The certificate also allows you to participate in the AWS channel program and makes it easier for you to sell your packages to commercial users and even government agencies.
You enjoy lots of benefits when you are an AWS certified cloud hosting reseller. Thus, we advise that you make moves to become one. Check out the requirements for getting the AWS reseller certificate and get one today.
❖ Get High-Quality Hardware
You will require hardware for your cloud hosting business. Of course, you will need a server; thankfully, you can get a server even without leaving the comfort of your home. You can choose to use either a hypervisor or a physical server. Getting a server is not as hard as you think; in fact, you should have no trouble at all getting one.
❖ Get the Required Software
Your cloud hosting software is the control panel of your hosting. It helps you manage your clients and gives them access to create and manage their servers themselves. You will need virtualized computers to keep up with your hosting business. These virtualized servers have both hardware and operating system configuration that your users can choose. If you lack the necessary programming expertise, we advise that you go for a ready-made control panel.
❖ Get a Reliable Partner
Now that you know what you want from your hardware and software components, it is time to get a partner with the services and resources you need. A lot of the big names in cloud hosting offer smaller businesses reseller options. You can customize any of their white label plans to suit your business needs, rebrand, and sell it off to your customers at your own rates.
You must research the company before you decide to go with them. Ensure you go through the terms and conditions with a fine-tooth to ensure that you understand what exactly it is you are getting into.
❖ Get an Office Space and Hire Support Staff
People tend to trust businesses with a dedicated office space more than those without. There is just something about being able to put a location to the company they are tying down their capital. Once the dedicated office space has been sorted out, it is time to set up an experienced support team.
Resolving customers’ complaints on time makes for excellent customer service and boosts customer satisfaction. Remember, the quality of support you provide for your customers can make or mar your business.
Step 3: Finalize Your Plans
Now that you have settled the first and second steps, it is time to move on to the next big step.
❖ Advertise! Advertise! Advertise!
Advertisement is almost like the air of the cloud hosting business. Once you have finished setting up your cloud business, you must strategize on how best to create awareness about it. Thankfully, there are several advertising options, from print media to digital marketing.
You can hire a marketing team to come up with great marketing strategies or invest in paid advertising. Either of these options will help you pull in more customers and translate to increased revenue for your business.
Bonus Tip: How to Determine Your Cloud Hosting Server Requirements
You may not be looking to start a web hosting business. Perhaps, you want to host your site on a cloud server, and you are at a loss as to how to start. You must work to identify your cloud hosting server requirements.
Find the details on how to identify your cloud server requirements below.
1. Server Bandwidth Requirements
Let us begin by learning how to identify your bandwidth requirement for the cloud hosting server you hope to utilize. There are certain information you will need to calculate how much server bandwidth you need to host your site. They are the average number of visitors to your site monthly, the average number of pages viewed by each visitor, the average number of pages viewed monthly, redundant factor, and average page size.
For example, your site has 500,000 visits per month, and each visitor views an average of 4 pages, the total number of pages viewed becomes 2,000,000/month at an average speed of 2 MB, a redundant factor of 1.8, and a transfer rate of 4,000 GB/ month. With these details, you can calculate your average bandwidth using a bandwidth calculator.
2. IP Address Requirement
Before choosing a cloud hosting plan, you must know how many IP addresses you will need. Most cloud hosting providers give you up to 2 IPs; however, as your business continues to grow, you will need to expand your IP addresses. To that end, we advise that you select a plan that allows you to add additional IP4 and IP6 addresses when the time arises.
3. Compute Requirement
The term compute refers to the computing power of the server. It includes virtual machines, RAM, and CPU performance. We will examine each of the compute components one by one.
❖ Virtual Machines
There is no hard and fast rule in the number of virtual machines you need to run your site on your chosen cloud hosting platform. You can use as little as 15 virtual machines or as many as 200 virtual machines; it’s all your choice to make. However, the downside is that if you overstock up on virtual machines, you risk losing all of them when your server goes down.
❖ RAM Resource
It is crucial to get the amount of RAM you want right; too little or too much can be disastrous for your server. The standard RAM allocation is between 8 GB and 64 GB.
4. Volume Requirement
Your volume requirement is the total amount of storage space you will need to host your site on the cloud hosting server. Your volume requirement should be a reflection of the entire data stored on your virtual disk. Whatever you do, make sure you have at least 15% of the total volume free.
The cloud hosting business is extremely lucrative; you could choose to make your cloud server from scratch or opt for a reseller option from any reputable cloud host. There are three easy steps to starting your cloud hosting business; the first involves drawing your business plan and coming up with a niche. The second consists of getting the necessary resources, and the third step is advertising. Use our article as a guide for setting up your cloud hosting business.
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