Cheap dedicated servers in the hosting industry

Everyday more and more users become aware of the true power the Internet has when it comes to making money. Nowadays, everybody with internet access and little or no commercial training at all can set up an online business literally within minutes. And as the number of website owners increases exponentially day by day, the need for reliable web hosting solutions increases accordingly.

Back in the 90s during the first Internet “commercial explosion”, the hosting plans were very different than today. They use to be expensive plans with limited technical support, which was perfect for web hosting providers in that old Internet business model.

But when the first “magical bubble” finally disappeared, it took many hosting reseller companies with it; they simply couldn’t face the costs. The fact is that during that days, people who decided to start an online business didn’t find out how to use the Internet as a marketing tool: most websites were just intended to show people some product of service, and asking them to call a number or visit some “real life” store, and the inability to generate visitors and thus potential sales just didn’t justify all the time and money spent.

But as new technologies were developed and new great ideas were implemented, that concept changed. Today, internet marketers tend to set up several websites that make some money independently, instead of trying to build a super-selling website to compete with the marketing giants. The impact on the web hosting industry is immediate: there is an increasing need of hosting solutions to bring life to those sites.

This increase in the demand for web hosting space has lead to a huge increase in the number of hosting providers, which of course has caused a fierce competition with the consequent drop of the prices and increase in the true value of hosting offers.

Particularly, the price of dedicated servers has dropped more than 70 percent since 2003 while the quality of the services offered (in terms of customer support and supported features) has increased about 40%. At the same time, new hardware is developed constantly to make servers more reliable and inexpensive and home computers more and more powerful too.

But technology didn’t just make better hardware, but also more powerful and robust software was built for servers. With dedicated servers getting cheaper and more powerful every day, the web hosting reselling industry was consolidated as one of the most important internet-based businesses.

With the arrival of Web 2.0 and user-friendly web services, today dedicated servers play a much more important role than before. They don’t just store files, but are in fact multi-purpose computers that must be able to support running large databases, deal with massive traffic and perform complex operation in real time, while taking a major concern in preserving users’ confidential information safely stored.

The web hosting industry continues to grow each day, and as a result of this expansion there are more people renting cheap dedicated servers to set up their hosting reselling business and make some money on their own. This seems to be the hottest trend, as purchasing a dedicated server solution at low cost and selling web hosting space at reasonable prices allows a quick and steady cash flow without too many complications.

Experts estimate that the hosting reselling industry will get bigger and more profitable at least for 5 more years, but my personal opinion is that it will never stop growing.

Luca G. Browne
Dedicated Server Advisor Contributor