Businesses thrive on the vision to grow, which keeps them alive. The scenario is no different for hosting industry. Most hosting providers start with a Reseller package and gradually move to an isolated environment like a VPS or a Dedicated Server, after the revenue stream is well assured. Most entrepreneurs prefer to invest less at the initial stage. In such a scenario, the reseller should perform a thorough analysis and plan, before proceeding with an upgrade. He needs to ensure that the investment for a dedicated hosting solution will give him enough revenue to survive. As the dedicated servers are relatively costly, lack of revenue can trouble the books of the reseller. Hence resellers need to ensure the following things –
At the outset, the reseller should ensure that his company is relatively popular and has a good revenue stream to meet the cost for the initial 3 -4 months. It is recommended to initiate a fool proof marketing strategy before purchasing a server, just to have a stable base to start with.
2) Reliable Datacenter Provider
While moving into an isolated hosting environment, the reseller needs to ensure that he is dealing with a proper datacenter, having direct access to the hosting server. The data center provider should be reachable at any time, and should be efficient enough to resolve any issues as soon as possible.
3) Financial Planning
The resellers should decide whether to purchase multiple VPS plans or a single Dedicated server to provide hosting to their clients. It depends upon the number of customers and the amount of revenue generated. Hence, the reseller needs to evaluate the sales of past few months and ensure that it is on an upward swing.
4) Technical Team
The resellers should give proper technical assistance regarding any customer inquiry. Most resellers have their own technical team to answer customer inquiries. If the reseller is not having a team, the apt solution would be to purchase a Fully Managed Dedicated hosting solution from a reputed data center provider, so that the data center provider will provide assistance for the same.
If the reseller does a detailed analysis of the above-mentioned factors before proceeding with the purchase of dedicated hosting solutions, it would be beneficial for him economically.