Best of the ISP-Lists

A Basic Business Question

Members of the ISP-Webhosting list disagree in detail about how much bandwidth a local ISP requires to start up a webhosting business.

[October 26, 2001]

On the ISP-Webhosting list in October, MF inquired,

"I am in the middle of drafting some figures on starting a small webhosting company. I was wondering how many customers you could run off a 256k frame relay connection. Any thoughts?"

A number of respondents advised upgrading to a T-1:

[DW warned] "With cable modems and DSL both faster than your single connection, just one person would tie up your bandwidth if they downloaded from your site. I recommend a minimum of a T-1 line. On the other hand, if no one really visits these sites, or if it's all local and all anyone has is dialup, then you might be able to get away with it."

[MW recalled] "I've seen as many as 100 virtual websites hosted on a 128k ISDN without too much trouble; it really depends on the traffic. If you're wanting to really do serious webhosting, though, I would strongly recommend a T-1."

Others suggested downgrading to DSL:

[GS observed] "If any of your customers are doing streaming media, you will have some serious bottlenecks to deal with. I would not recommend a T-1, though: I would go with DSL, if that is possible. You'll save a bundle of money."

[GW agreed] "I'm sure all of us would like to have a T-1, but that's expensive. I have a 384k SDSL with about a dozen sites. Some are seldom used, and one or two are moderately used. I also do e-mail, and host a couple of relatively small mailing lists. My router says that my average use is about 6 percent of my bandwidth. I've had less trouble with this DSL line than some people I know have had with their T-1."

BS claimed that in the right market, 256k could be just fine:

"256k is a bit small by today's standards, but it may very well be enough for the right niche. A 25k web page, all other factors being equal, will travel through a 256k link just as fast as it would travel through a T-1. If neither circuit is maxed out, and everything else is equal, there is absolutely no difference whatsoever between the two circuits from a performance viewpoint. A startup focusing on local mainstream business sites could very possibly get off the ground and do a pretty darn good job of it with a 256k frame circuit."

JM disagreed, warning that it's dangerous to host your customers on a slow connection:

"Can't say I've seen many 25k web pages in the last few years. Companies are posting video clips demonstrating their products, as well as PDF files of newsletters, product manuals, or marketing brochures. Sites are getting larger, because more people are connecting via broadband. If you can find customers willing to serve only small, mostly text-based web pages, and you can police them accordingly, then you've found quite a niche. In this day and age of homes connected via cable, DSL, and satellite, though, serving sites over a slow connection can be the kiss of death to a webhost."

—End