Dedicated server and economics of Web Hosting

What is a server ?

A server is something that serves content. ie, a place where you can keep your website's files. Normally it is a computer at a data center. Owing to the need to communicate through hard lines, they normally do not have a monitor. Other parts of home computer are retained in a server. ie, a CPU with a powerful Intel Xeon processor ( normal choice ), abundance of RAM, motherboard annd so on.

A server is supposed to work 24 x 7 x 365. So the hardware used on a server are industry class. The data center employs other peripherals and devices to keep this hardware running. For example a very good internet connection, an uninterrupted power supply, one or more back up internet lines to keep the server connected online so that your website will not suffer an outage. There will be other devices like industry grade routers, switches, modems, cooling system etc to keep the server online and help serve your content to the customers without failure.

The economics of selling your server space

If you check with someone who started into web hosting for an individual website or a couple of them, they would any time tell you the best way to get into running websites is to get a shared hosting package. A shared hosting package is usually a very small space in a standard server. Web hosts cannot make enough profit if they dedicate their resources ( server ) into selling shared hosting packages alone. It is because shared hosting plans available in market are very economical and budget concerned.

Why a VPS ?

I gave you above data so that you can understand that customers who will ask for a dedicated server ( a full server ) is not a majority. Here comes the viability of a Virtual Private Server. It is like dividing server into units which behave like a server and sell them to those who are having a high traffic website and need a solution better than shared hosting packages offer.

A VPS is much cheaper than a dedicated server and much powerful than a shared hosting. Dividing a server into shared hosting, VPS and Dedicated Server packages helps a web host stay afloat.

What is your opinion about running your own web hosting company ? Will you dare to do one ?

One should have a fair knowledge about system administration to start a hosting company.

internet is full of knowledge and you can learn a lot about server management for free. Only the practice require time and to buy a server.
But to provide a Good service you first need is to have other people to work with you. running it alone is not possible if you are human and need to sleep sometimes

You should have some decent linux knowledge before doing this. Also understand that this is the easy part. The hard part is getting your business known and getting sales.

With all the respect to @meetdilip this is a very crappy, useless, trolling thread. Why does one come to open a parasite style thread, on topics which are easy to find even in Wikipedia. Sorry folks, but a question like "What is a server?" sound quite imbecilic I have seen such posting in many online communities, "held hostages" by marketeers and spammer. This forums never kicked off and got virtually killed at the start. I would suggest such users to be sent elsewhere to educate anyone else.

W'd better discuss real issues, exchange knowledge and if someone really needs help on any tech issue to offer one an advice.