Why Should You Become a VPS Provider?
There are lots of forms of web hosting ranging from shared web hosting, VPS (Virtual private server), down to dedicated servers, and of course there are free hosting providers too, but since nobody wants to see those annoying ads and rely on free services that may disrupt anytime, we're not talking about free hosting here.
Something similar applies to shared hosting, because any malware infections or security issue affecting a site on shared server can pose potential threat to every single site on the shared server.
Dedicated servers solve this problem, but they're quite expensive, and aren't preferred by most of the website owners, and even small size companies.
However, a VPS i.e. virtual private server offers the best of both worlds, combining capabilities of a dedicated server, at a slightly higher cost than that of a shared hosting server.
Most web-hosting providers basically target VPS web hosting market, because once the entire set-up is done, challenges are quite less compared to other web hosting services and the protocols to set them up are also quiet easy to work with.
Understanding the VPS Better
If you're new to hosting field, virtual private server is a huge hosting server categorized into numerous tiny virtual servers, each possessing their very own Operating System. Every customer can work on a Virtual private server individually, and separately, without really being involved with activities of other customers, unlike the shared hosting environment.
Such accounts can be managed, restarted, and accessed through the customers possessing total handle to the portion owned by them. But, if you're a VPS provider, the bad news is that such customers may set up any kind of software program, which may at times pose security threats too.
Of course, the good part is that they can even implement any kind of functionality without causing any impact on the actions of the other customers using the same VPS.
Why Should You Target the VPS Market?VPS guarantees comprehensive specialized management to the webmasters, and even allows them to set up any kind of software program they really want to. This isn't permitted by shared hosting,so a customer would obviously look at VPS. Hence, if you're a VPS hosting provider, you can just think how many VPS customers you can easily find.
The VPS users enjoy independent management over their machines that are safeguarded by root level security passwords restricted only to them. There are plenty of other benefits of VPS, but on the downside, one needs to deal with all sorts of security issues, and higher monthly costs than shared hosting environment.
Hence, it's pretty obvious that beginner level customers would not look at VPS, and only those who've got established websites, and online businesses would seek your services. But, in case of shared hosting, many customers who initially purchase a shared hosting package fail to sustain their online venture, and don't renew it, which isn't the end result of poor-quality service provided by you. On the other hand, most of the VPS customers give you recurring business, so long as you keep them happy in terms of service, and server performance.
Last but definitely not the least, you must keep the sheer fact in mind that you'll need a good deal of rapport in the market to grow big in the VPS hosting market, so initially you must not aim at higher profit margins, and rather try to establish your name. Therefore, I'd recommend that you run such good offers, and give away freebies during the initial stages, and ensure top notch customer support & zero down-times during the initial 6-12 months.