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How to Start Your Own Cloud Hosting Business

Posted by QuoteColo on January 12, 2015 - Updated on December 20, 2019

businessman looking at business strategyHave you been thinking about starting your own cloud hosting business? Cloud computing is a great option for many companies today, and that means business opportunities are ripe for those who want to start offering these types of services. Companies know the benefits that cloud computing can offer, such as cost effectiveness, scalability, and fast access to data. They just need a great cloud hosting business that can get them started. With the right knowledge and preparation, you can set up and start running your own cloud hosting business to help those companies looking to step up to the cloud.

The industry is growing quickly. In fact, estimates are that it is worth close to $17 billion currently, and this number is poised to keep on rising as more and more companies move to various cloud services. Now could be one of the best times ever to get started with your own cloud hosting business. The field is booming, and there is plenty of room for newcomers. Fortunately, it is relatively easy as a startup business, but you do need to make sure that you treat it like a real business.

What exactly do you need to do to create a cloud hosting business that works and has the potential to be a real success? The following tips should help to keep you on the right track.

Know the Services You Want to Sell

While getting into the field is relatively easy, you still need to have knowledge about the type of services available and the types of services that you want to sell. You have a number of different options depending on your focus. Platform as a service is a typical choice. This will allow the customers to rent storage, hardware, operating systems, network capacity, and more. They can rent virtual servers that you run and maintain for them. Another option is to offer infrastructure as a service. In this instance, your hosting company would take care of storing, running, and maintaining a client’s system.

Another option that some companies may utilize if they are distributing software is software as a service. This will allow clients to have access to the software through the web and to rent it rather than actually buy it.

Create a Business Plan

Once you know the types of services you want to sell, you will want to create a business plan that will help keep you on track as you develop your new venture. Think of the business plan as a roadmap that will help you focus. Take the time to look at other business plans to get an idea of what type of information you should include. Basic starter business plans can be found here.

Should You Be a Reseller? 

cloud reseller

Instead of trying to start your own brand and get it in the public eye, it might be a better idea to consider working as a reseller. Working with a company that already has a good name in the business can help you get off the ground much faster. This can help you save money, learn the business, and take on less of your own risks. Working as a reseller makes it easy to understand everything you need to know about the business before you venture out on your own. When you become a reseller for an established cloud services company, you will earn commission and referral fees. This is the simplest way to start. HostGator, a leading provider of  cloud and dedicated servers has a real simple reseller program with prices starting at $19.95. Turnkey Internet, a NYS based IAAS cloud provider, also offers a very comprehensive reseller program with lucrative discounts up to 20%!

If you do consider working with a reseller, it’s important that you take the time to understand exactly what they will offer you and what they expect from you in return. Who will be responsible for maintenance? What type of advertising should you do? Know all of the terms and conditions before you start working with them to ensure a good partnership.

Develop Your Marketing Plan

Marketing is one of the most important aspects of any business today. Without proper marketing, it will be virtually impossible for the right clients to find your business. The Internet is full of so much “noise” when it comes to clamoring for peoples’ attention that without a thoughtful and intelligent approach to marketing, most companies will fail. Long before you start your business, you need to begin working on a marketing plan so you can get an idea of how to sell the services you offer.

When selling services for the cloud, the natural place to focus your marketing efforts is online. Creating high quality content on your site that explains your services and provides more insight about the cloud can be beneficial. It is important to remember that just because a company might have an interest in cloud services does not mean they are experts. Many are “tech deficient”, so having some easy to read and understandable content on your pages that explains the basics is a good way to make clients feel more welcome.

You should also remember the benefits of social media and marketing on those outlets as well. This provides you with another way to interact with potential clients and to get them interested in your business. Consider making videos for YouTube as well, where you outline your cloud services, and give the viewers more insight into how the cloud actually works.

You could also try a search engine pay per click advertising campaign such as Google Adwords to immediately get your company out in front of your target market. As you can see below, be careful because Adwords is expensive and you pay for clicks and not actual leads. Interested shoppers may click on your Ad but may never convert or utilize your services. As an example, using “cloud hosting reseller” as a keyword, it may take you 10 clicks to get one conversion (10% conversion rate which is very optimistic), your cost would be $296.80 (10 clicks x $29.68 per click) for that one lead and that person still has to utilize your services to see an ROI. As they say, “buyer beware!”

cloud hosting keywords

Of course, marketing is not always easy. In fact, it can be downright hard, and it might be your best option to outsource your marketing to a third party. A professional team of marketers might be costly, but they know what it takes to do the job right and to get results. It may be the best decision you make. Still, with some effort, planning, and time, you can do much of the marketing footwork on your own if hiring professionals is simply not in the budget at this time. Just do not expect the same results.


Get the Equipment You Need

When you first start the cloud hosting business, you will have to buy a substantial amount of equipment unless you are merely working as a reseller. If you are taking care of everything on your own, then you will need to have servers, computer software and hardware, operating systems, processors, and an office or a qualified data center where you can host the equipment. Naturally, you will need to hire support staff to help with the phones and orders, as well as personnel who can manage and make sure the servers are running smoothly and that there are no potential issues.

A Great Opportunity

The earning potential and the growth potential for the field are astounding. Even for new companies, right now is a fantastic time to start a cloud hosting business. More and more companies are taking note of the benefits that the cloud offers for their data. Start developing a good reputation now so you can slowly grow your business so that you can take on more clients over the next couple of years. With quality service and equipment, you can turn your dream into a successful reality.

Categories: Cloud

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