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  Post #16 (permalink)   05-30-2013, 01:54 PM
HD Newbie
Join Date: May 2013
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Status: slashpro is offline
Originally Posted by handsonhosting View Post
This makes zero difference when it comes to taxes as you can write off your rent on equipment just as you would your purchase of hardware.
The only time physical ownship of hardware comes into play is when you go to sell the company - more assets available - however in todays market, most hosting companies devalue the hardware so much that it is of little concern. When selling/buying a web hosting company, the only thing looked at is the total income amount - even expenses are hardly looked at any more. The reason is because whoever is buying you, they'll have their own equipment and staff - thus your expenses are no longer their expenses.

Physical Assets are much different when it comes to online companies, and an even bigger difference when it comes to a virtual company such as Web Hosting.
You're also not going to get a loan if you don't have physical assets... if you ever need one for whatever reason - I know a few places that were having that problem.
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  Post #17 (permalink)   06-01-2013, 12:08 AM
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Join Date: Apr 2013
Posts: 27

Status: vanixhosting is offline
As far as colo, it is expensive at first but in the long run will pay off, with rent servers you keep paying and eventually pay more than the server itself that you could of bought and colocated for a smaller fee monthly.

  Post #18 (permalink)   06-10-2013, 10:25 AM
HD Wizard
Join Date: Mar 2005
Location: Atlanta, GA
Posts: 2,264

Status: handsonhosting is offline
Originally Posted by slashpro View Post
You're also not going to get a loan if you don't have physical assets... if you ever need one for whatever reason - I know a few places that were having that problem.
Not entirely true. We've applied and received a number of them over the years from our bank. Maybe it's because they see the cashflow that goes through their bank that they grant the loan, but the physical hardware didn't come into play. The only thing they wanted to see was our business plan, our expansion plan and how we were going to pay things back.

While a physical asset is a great thing to have a loan against, it's not required. Much like with the credit cards, it's not required to have physical hardware - we haven't had physical hardware in nearly a decade. Never an issue with the bank either.
Emerson Nogueira
cPanel Web Hosting, Domain Registration, Managed VPS Servers

  Post #19 (permalink)   08-31-2013, 09:44 PM
HD Newbie
Join Date: Aug 2013
Posts: 29

Status: Cloudcom is offline
Co-location is better option if you have extra money to invest for your server requirement. It can cost less recurring cost then regular hosting. But sure is knack if cannot maintain the node.

It is important to look after backup with bad RAM's, router issues, etc.

  Post #20 (permalink)   09-22-2013, 02:45 PM
HD Amateur
Join Date: Aug 2013
Posts: 79

Status: IWSNetworks is offline
I prefer Co-lo
But there are a lot of trouble beside requires high fund!
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  Post #21 (permalink)   09-23-2013, 02:43 AM
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Join Date: Mar 2013
Location: The Netherlands
Posts: 4
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Status: Serverius is offline
If you plan to place a lot of servers i think its best to own them yourself. Benefit of renting however is someone taking care of the servers..

  Post #22 (permalink)   10-13-2013, 03:19 PM
HD Amateur
Join Date: Sep 2013
Posts: 59

Status: SkylarM is offline
Prefer to colocate. Owning your hardware gives your business equity that you don't have when renting.

  Post #23 (permalink)   12-11-2013, 01:02 PM
HD Newbie
Join Date: Nov 2013
Posts: 28

Status: RisingFog is offline
If you're starting off in the web-hosting business, Renting is definitely your best bet. Co-location is nice and all, but very expensive just to start it off.
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