Originally Posted by Paul0130
Indeed it can be profitable but getting it right can be very hard.
Very true - especially for people who are just starting out.
I can tell you with absolute certainty that if I was only starting out in web hosting now, I'd not even attempt it and instead invest my time in other ventures. The web hosting industry is a saturated market. That's not to say that you can't do well in it, but it's definitely saturated. Web Design is almost as saturated as really there's no degree or certifications required to say that you're a web host or a web designer. It's taken pretty much at face value.
If starting out, developing a niche or a dedication to a certain product line is almost a requirement. There'll always be giants such as GoDaddy and even Google's Web hosting venture, but many people choose to avoid the nightmares that come with large businesses and instead stay with smaller hosting companies.
As long as you provide good service at a reasonable price, people will continue to sign up for web hosting. When you put everything together, there's money to be made, but the days of starting for less than $100 are quickly fading into the past (thankfully).