Web hosting business: go local or go global?

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#1
The web hosting market is insanely saturated, with servers popping out of anywhere at equally insane prices (for the best, in this case).
However, this doesn't mean you can't start a web hosting business. In fact, all you have to do is think of it in a different way: for instance, you could run a local business to avoid an enormous deal of competition.

Would you run a local web hosting business to have a better chance at succeeding? Or do you think that losing such a huge portion of potential customers is not worth it?
 
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#2
There are many businesses on the internet today and web hosting is among the famous one.It's a lucrative business that is easy to scale. There is a common factor to every business in the world which is called 'Time'.So you need time as well in a hosting business.
->Time to learn how the business operates
->Time to decide why you want to go into hosting business. Is it because you are passionate about it or what?
-> Time to start
->Time to decide which one to start with. Are you starting off locally or globally( which usually depends on the capital at hand)?
Hosting business is like any other biz which requires time and effort to execute.My advice is that you should learn & know the in and out of starting a hosting company and keep on learning by starting small.Most of the big hosting company we are hearing today started small.As time goes on then scale it to the top.
 

vinaya

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#3
If you want to sruvive the competition, you should go local. There are already big players on the market, how would your company that is just starting will compete against big companies. How would you convince people to biuy your services? why would people trust you. Therefore, you should go local. When you are local you can meet your clients personally and try to convince them to buy your hosting. Getting customers when uyou are local becomes easy.
 
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#4
There are many businesses on the internet today and web hosting is among the famous one.It's a lucrative business that is easy to scale. There is a common factor to every business in the world which is called 'Time'.So you need time as well in a hosting business.
->Time to learn how the business operates
->Time to decide why you want to go into hosting business. Is it because you are passionate about it or what?
-> Time to start
->Time to decide which one to start with. Are you starting off locally or globally( which usually depends on the capital at hand)?
Hosting business is like any other biz which requires time and effort to execute.My advice is that you should learn & know the in and out of starting a hosting company and keep on learning by starting small.Most of the big hosting company we are hearing today started small.As time goes on then scale it to the top.
You are absolutely right by saying that web hosting should be treated as any other business, but, as such, competition is another factor you should keep look out for. Every successful business has to find a favorable niche to flourish in, because that's the only way to get yourself customers. This is even more relevant online.
Your advice, however, still stands true and is still extremely valuable. Thank you for that!

If you want to sruvive the competition, you should go local. There are already big players on the market, how would your company that is just starting will compete against big companies. How would you convince people to biuy your services? why would people trust you. Therefore, you should go local. When you are local you can meet your clients personally and try to convince them to buy your hosting. Getting customers when uyou are local becomes easy.
Exactly my thoughts. Once you build up a nice batch of customers, then you could even think about opening your business over geographical borders, but before that it would just be a waste of time (as in, you wouldn't grow as quickly as you would by focusing on your local business).
 

24x7serverman

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#5
Agree with the previous replies. :)

I would say, it depends on your budget as well as on services which you're going to provide with the cost associated with them. If you have good sales and marketing team ready for advertising and acquiring the customers then you can extend your business scope globally. But it's always recommended to start from small so you can learn the new things, customer's perspective towards your business, their expectations.

You should have good website and digital marketing team too to introduce your company globally. So I would suggest, start from local and then think to extend globally.
 

fishmonk

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#6
Personally, I think going local is a great idea. In my country, many companies are unsure where to start when it comes to web hosting. If you could provide value-added services and present yourself well to your clients, I am sure they will chose you over companies based from other countries. Offering flexible payment methods would also be attractive to local clients.
 
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#7
You should have good website and digital marketing team too to introduce your company globally. So I would suggest, start from local and then think to extend globally.
Oh, with no doubt. Local companies might be smaller, but that doesn't mean they should come down to compromises just because they're catering to a narrower customer base. Plus, if you're planning to expand you'll need them anyway, and you can only reap benefits from them.

Personally, I think going local is a great idea. In my country, many companies are unsure where to start when it comes to web hosting. If you could provide value-added services and present yourself well to your clients, I am sure they will chose you over companies based from other countries. Offering flexible payment methods would also be attractive to local clients.
I think they're much more likely to trust someone in flesh and bone they can see and run to in case they need anything than a no-one full of promises and -possibly- just smoke. Whenever we see a good offer we're always held back by the possibility of it being a scam, but I think we'd give them a shot if they were full-fledged businesses five minutes from your house.
Payment flexibility is also another good reason!
 

StartVM

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#8
It isn't a decision between choosing global or local, rather you need to start local in order to scale globally. "Business Expansion". It seems to be a particularly big issues in the hosting community, but people think because they put up a hosting website, they can pull in the same kind of customers from all over that GoDaddy and BlueHost get. There are no shortcuts to success or scale. Especially now, you have to start local and scale up.
 
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#9
PenguinManiac
That's what I was afraid of. Most emerging hosting business don't realize how saturated the market really is and think they can compete with major companies by just whittling down the price tag.
Going local is the safest bet, although it requires quite some initiative. Going around asking companies to host their website can be exhausting in its own way.
Thanks for the answer!
 
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#10
I would suggest start local. If you go global or try and grow too fast you will be eaten up by the big boys.

This kind of business is a numbers game. Going global is is going to cost you time and a lot of money. You will have to beat the likes of go daddy and 1 and 1 and so on. I would always suggest start local charge a decent price for a decent service then take it from there as if you go global people will expect a decent server for virtually no price at all. Make some money, take your time and expand when you feel ready
 
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