I am not the one to tell you how to turn your basement into a datacenter.  In my opinion, that is the last thing you really want to do.  Sure it sounds like a fun geeky projects, and yes – maybe somewhere down the line you might be cutting a few percentages off your overall costs.

Is it all worth it though?

Services You Can’t Provide with Home Hosting

Looking at the services that a datacenter could provide that you may have trouble with, some of the most important aspects of hosting may be missing from your host it from home server.  People like having redundancy.  Are you going to be able to provide backup generator power, diesel generators, redundant routing and multiple carriers?

More Work for YOU!  (and explosive diarrhea)

Now not only are you managing your own hosting company, you are also in charge of keeping that machine updated, secure and running around the clock, 24/7, 365 days a year. Think of it as having to baby sit a child that you can’t take anywhere because it has unpredictable explosive diarrhea.   You never know when it might strike, and as far as taking care of a server goes – you never know when the worst might happen.

Professionalism: Who Would You Rather Do Business With?

The last point I would like to bring up is that people don’t feel comfortable with it, so don’t expect to get many customers to sign onto the deal.  If company A told me they were hosting out of their basement and company B told me they hosted out of a real datacenter.  I’m going with company B, and you know you would too.

The moral of the story is that people often greatly under estimate the time, devotion, costs and more that it takes to get this type or project up and going.  Between server security, updating the server, and administering it too your not going to have much time for anything else.  Best to go out and find a good data center or dedicated hosting partner to help you with that side of the web hosting business.