Shared hostings, revenue per server

I continue trying to understand how hosting companies earn money with their services. I cannot calculate the TCO per server or per user, but I can do some figures to calculate the revenue per server: I have the prices on the web page and I can know the number of customers for a given server (neighbors).

I have looked for the benchmark recognized by the market and there are 2 key measures used: net revenue per square foot and net revenue per server. The second one can be found in the results report of the public companies;  so I can compare my exercise with the market!!

With it, I wanted to understand how much revenue per server earn each one of the providers that I work with. There are some assumptions I had to do, but the result are so much interesting.Revenue-per-server-analysisSome things to think about:

  • Rackspace declared on Second Quarter 2013 a revenue per server of 969€.
  • I have to continue analyzing this, the information I have does not make sense a lot. The prices are too different.
  • It’s easy to understand how companies with cheap prices hosts more customers in the same server.
  • It’s almost impossible to calculate the Operating income.

 

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