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2GB XEN > ? How do you make profits??
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2GB XEN > ? How do you make profits??

darknessendsdarknessends Member
edited April 2013 in General

Hi Guys,

Considering the cheapest dedicated offer in Miami IX was 299 for 128 GB of Dual E5-2620, I want to know how anyone can make profits by selling 2GB XEN server ?

I am being realistic here. First of all you can not sell the whole node. Lets say you kept 10 GB Memory for your node to manage than you have left over 118 GB to sell. This at LEB standard price of 118/2 VM x 7 DOLLAR = 413, If I just now add cost of pricing of IP and the cost of transactions ( payment gateway ) and miscellaneous cost I can easily deduct 10% more....leaving you around 360.....Now that is a pretty close.....profit of 60 USD.

But what do you pay for support of those 56 Virtual Machines and your support staff ??

At the end.....Do you make considerable profits to buy your next node? Please comment.

The VPS business of this kind seems surprising to me. Surely it is a profit even at that prices, Thats why they are being sold in the first place.There must be some catch which only a good provider can explain I think.

Please do not consider buying your equipment and all that stuff, colocation, since those calculations will also come to a similar price standard too.

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Comments

  • You need 256 or 512gb ram

  • And 12 - 16 disk raid arrays

  • Umm, overselling?

    (Before you ask: http://www.webhostingtalk.com/showthread.php?t=1193035)

  • Even getting 256 GB RAM wnt cut it, However 512 GB may make profits, but small ones, again you forget that support for 256 virtual machines has a cost too.

  • Simple
    You have other customers.
    You do a loss here, but gain on other products.

  • concerto49concerto49 Member
    edited April 2013

    @yomero said: Simple

    You have other customers.
    You do a loss here, but gain on other products.

    Yeah sounds like promotion to me.

    @darknessends said: Considering the cheapest dedicated offer in Miami IX was 299 for 128 GB of Dual E5-2620, I want to know how anyone can make profits by selling 2GB XEN server ?

    Colocation. Either way, won't be doing it.

    @darknessends said: But what do you pay for support of those 56 Virtual Machines and your support staff ??

    They don't that's the point (unless they are doing it for promotion -- so don't bash).

  • nutjobnutjob Member
    edited April 2013

    If you don't know how to make a decent profit doesn't mean no-one does. Have you considered that not everyone's cost is what you've quoted?

  • @nutjob - mentioned that I actually believe it is profitable - that is why being sold. It is just a model different, I cant understand.

  • @Voss : what do u mean by summer is nearby ??

  • @darknessends said: what do u mean by summer is nearby ??

    Translation: Due to your latest threads some people things that you are launching a hosting service. And particularly a fly by night one.

  • Ahha, well.....I have been on WHT since long long time now. No fly by for me from this community. I am involved in some pretty advanced stuff for some big companies.

    LEB - I would like to someday - But hush hush ! Not now.

  • raindog308raindog308 Administrator, Veteran

    @darknessends said: I am involved in some pretty advanced stuff for some big companies.

    Watch out, we got a...

    @darknessends said: Considering the cheapest dedicated offer

    Consider buying your own hardware.

  • MaouniqueMaounique Host Rep, Veteran
    edited April 2013

    Xen can do memory balooning. However, it is in no way shape or form as efficient as OVZ style memory allocation and will probably never be, it is easier to do that with VMWare.
    Considering no balooning is done, RAM is cheap these days, a Dual-E5 can have 512 GB ram (tho in this case it wont be too cheap, because higher density sticks dont scale in a linear fashion), however, you can put a huge server with 12 drives and 256 RAM, cheap SATA (even enterprise grade) that will cost about 3000 refurbished and make some small profit. It will run decently, the higher the RAM per VM, the lower the load per total, you can even use some Opteron make for more efficient CPU utilization and lower price.
    128 VMs on a node is not unheard of, some ppl put the same number on E3s with same 2 GB ram (but OVZ). It will work decently, will make you a profit, but you cant really offer support for that, other than the regular links to some KB articles or FAQ.

  • seriesnseriesn Member
    edited April 2013

    @darknessends said: Ahha, well.....I have been on WHT since long long time now. No fly by for me from this community. I am involved in some pretty advanced stuff for some big companies.

    Link to your wht account please.

    Edit : http://www.webhostingtalk.com/member.php?u=414081

    Doesn't look like long long time.

  • @darknessends said: how anyone can make profits by selling 2GB XEN server ?

    PR.

  • FreekFreek Member

    @AnthonySmith knows, but I assume that's his tradesecret ;)

  • marcmmarcm Member

    @darknessends you make profits just like McDonalds. Once you figure out McDonalds, you have a deeper understanding of the VPS hosting business.

    Or as Confucius said: Real knowledge is to know the extent of one's ignorance. When it is obvious that the goals cannot be reached, don't adjust the goals, adjust the action steps. The superior man understands what is right; the inferior man understands what will sell. Success depends upon previous preparation, and without such preparation there is sure to be failure. It does not matter how slowly you go as long as you do not stop.

    I believe you heard of Confucius, right? His wisdom is a guiding principle for many businesses.

  • @marcm said: @darknessends you make profits just like McDonalds. Once you figure out McDonalds, you have a deeper understanding of the VPS hosting business.

    The more the merrier ?

  • marcmmarcm Member

    @Noerman said: The more the merrier ?

    @Noerman - No. It's more like "moar for less" and "something for nothing".

  • @marcm said: No. It's more like "moar for less" and "something for nothing".

    I don't know how McD works in the US, but here it's "pay more, get less (and it's cold, but not the beverage)". There's nothing for nothing. You can't even grab napkins anymore.

  • @mpkossen where the heck do you live then? I travel a lot and everywhere in Europe and the US the food was good, except in Australia where my McWrap was cold. Still have napkins here in Europe! :)

  • MaouniqueMaounique Host Rep, Veteran
    edited April 2013

    I think the smallest hamburgers are in romania, can fit 3 in my palm with room to spare.
    You can say there is strong competition here, a lot of fast foods at all the corners. Lucky I stay at home now :P

  • @Maounique said: I think the smallest hamburgers are in romania, can fit 3 in my palm with room to spare.

    Are you a giant?

  • AnthonySmithAnthonySmith Member, Patron Provider

    First you need to understand 2 things, which you do not :)

    LEB cannot be your primary income stream.

    Doing all your research by asking in forums is stupid.

    Asking other hosts to give you inside information is just insulting as you are asking them how to take or divert customers.

    Please stop making these annoying threads, get out there and just do it.

  • @AnthonySmith said: Please stop making these annoying threads, get out there and just do it.

    I find that a tad harsh considering the amount of bitching you have done about OpenVZ providers doing this.

    Ah well if you cant beat 'em.

  • @AnthonySmith said : get out there and just do it

    Get out there and just do it and prosper

    or

    Get out there and just do it and burst

    It's a tough business that needs adequate knowledge and capital resource, and it is not for everyone.

  • AnthonySmithAnthonySmith Member, Patron Provider
    edited April 2013

    :-)

    Fine I am in the wrong @GetKVM_Ash go ahead and tell him how I make profit and how to directly compete with me, this thread only exists becasue I would not via PM

  • @unused said: You need 256 or 512gb ram

    I think small is better. Then for 128GB or 256GB RAM and lot´s of VMs should need a hugh raid with 16 or 24 disk. That´s not really cheap. Using a small server but lot´s of them should be better. Small E3 Boxes with 16 or 32GB RAM and 6 or 8 HDDs should be better and cheaper.

  • @AnthonySmith said: Fine I am in the wrong @GetKVM_Ash go ahead and tell him how I make profit and how to directly compete with me, this thread only exists becasue I would not via PM

    Well i didn't know that, fair play. Still im sure you can see where im coming from, this 2GB Xen thing was a bit of surprise after all the moaning you have done :P

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