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Which one is more profitable. Buying a server and hosting a website at home or renting a dedicated server from a hosting company ? I have fairly large number of users that are growing. I currently use a VPS but it is not going to work well in a couple of months since many users are joining and using my service. I was wondering if I should go ahead and buy a server and host it at home, or just get a decent dedicated server and call it a day.

I appreciate it if anyone can explains the pros and cons of both and help me choose one.

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Okay, hosting at home:

  • Cheaper, compared to renting a VPS.
  • You will have a slower upload than a server in a datacenter.
  • No redundancy if your internet dies
  • No redundancy if your power dies.
  • Noise and power bill for running a server at home.
  • You will likely have a dynamic IP, meaning the IP of your server will change over time
  • Depends on what router you have, but it's possible your router or home infrastructure won't handle a large number of connections.

Hosting in a datacenter:

  • Will cost more
  • Don't have to worry about hardware failure
  • Don't have to worry about power failures
  • Don't have to worry about internet connectivity
  • More manageable, less pressure on you. Server can be "managed" by the provider, meaning all your have to do is run the site.
  • Faster speeds. 100x-1000x likely faster.
  • Static IP likely provided as part of the hosting deal.
  • Enterprise gear
  • Guaranteed uptime (well, they should do...)

So, if you have a fiber connection at home, have a basement you can put a server in, and are willing to pay for the power, you can always see if your provider has a limit on their unlimited packages.

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also note, there may be fewer options for resolving host problems when you don't have direct access to the host. if the provider does not allow you to perform the action in question, you may have limited remediation options. –  Frank Thomas Jun 14 '13 at 14:28
    
As Frank says, if your host does not allow you to run servers from home and/or blocks port 80 then you're straight out of luck. –  tombull89 Jun 14 '13 at 14:29
    
Thanks guy. I go with host provider I think and save myself time and trouble :) –  Alex Jun 14 '13 at 14:44

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