In the context of tons of GBs of overselling offers from many top host, do we feel that reseller hosting, dependent on back up company is any good.
Also if one sees it in backdrop of dropping costs of vps, why not to start own hosting company based on vps than a reseller hosting.

Well, VPS sales are pretty high as people would rather buy a VPS than a reseller. VPS prices are so low now that you can buy a VPS for the price of a reseller. VPS provide people with their own guaranteed resources; not to mention people get root access with a VPS which allows them to host an assortment of scripts that require root access.

A lot of hosts specialize in just VPS hosting. But, then again, if you do not have the money needed to purchase servers required to run quality VPS servers, then reselling resellers is a good option for people.

Some feel that a too small VPS is not a worthy replacement for a reseller account on a well managed server, especially if specializing in hosting application based sites.

Further, local businesses and other niches that resellers should compete in, are not affected by the tons of GBs overselling as the online world is. Many resellers are not server admins or don't want to bother with that, so the VPS remains daunting, and while its benefits would be largely unneeded.

I agree. With VPS, you do get get guaranteed resources. And, that also holds it against you too. For example, with a reseller account, you can burst to 100% of the server (the host might suspend you, or might not) but with VPS, you can't go over what you're allocated. So, guaranteed resources are both good and bad.

I think a better step would be Semi Dedicated, then on to VPS, and then to Dedicated.

i know many hosts who have started small from a reseller and moved up, i also know hosts who have imidiatly splashed out on i7 processor servers arround £300/month + VAT and gone tits up within the second month. A middle ground is always good and picking the right backing for the stage that your company is at is always good and finding a host that can offer that progression without moving between several hosts is always good.

but as said, reseller - simi dedicated - vps - dedicated is always a good aproach for new hosts or those not as experienced with dedicated servers.

another consideration is lisenceing costs such as plesk or cPanel

The biggest advanctage with reseller plans is you dont have to worry about managing the server, updating software so on and so forth.

All you need to do is find a good reseller host and you will find you will be more then happy with what you find.

It would depend on the number of hosting account to be handled by the reseller , the type of hosting , and the proficiency in using the server.

VPS has got its own advantages in handling the hosting accounts, basically it allows the freedom to customize the server settings as according to the need.

I think one of the advantages of reseller hosting which vps hosting may or may not have is that you may get a good back end service provider wherein without knowing much about technical part of the servers and vps one may still be able to run decent web hosting business.
This is greatly reduced by having managed server / vps, though that may cost a bit higher from most reseller hosting packages.

Yeah, reseller hosting is the choice for those who are new or those who do not know how to manage a VPS.

I Highly agree, good place to start and even some comapnies never leave their reseller roots. however its great for getting the feel of the industry without worring about the server management and costs involved leaving you free to develop your site and support

It is far too much of a generalization to even form an opinion.

A reseller who has a strong back end support with a strong company is generally going to be far better than someone who gets a bargain basement VPS or even dedicated server without support.

As far as being easier to run, if you choose the right VPS provider the degree of difficulty is no higher than having a reseller account.

Those starting hosting business with reseller hosting account, it is easier for them to operate focusing to their local market however to offer VPS you will have some knowledge of server maintenance and also software-related stuffs and also a market with lesser competition to target.

The management part is what will keep reseller hosting still around. Unless you know how to install all the security, and control panel software then reseller is what you want. Reseller hosting is fully managed for you and all you have to do is market and expand.

This basically says it all. Reseller accounts are here to stay, as well as VPS services for those who can manage a server.

We actually no longer sell Reseller accounts (haven't sold them in about 2 years now) and use VPS exclusively for our Resellers (as the VPS is managed) unless they opt to go with a low end dedicated server etc.

VPS from the standpoint of the host is a good move as it restricts the user to not have the ability to take down ALL accounts on a server with malicious scripts/code or hacking incidents.

VPS from the standpoint of the user is a 50/50 toss up. If you're concerned about other people having the ability to take your sites offline, then it's a good move. If you are running scripts that are demanding on resources, then it will hinder you.

So it really all depends how nice you want to play I know our resellers are all on VPS for the most part and there's no issues of not having enough resources for their needs.