[BBLISA] BaseSpace.net is for sale
Alex Aminoff
alex at basespace.net
Thu Nov 18 08:17:56 EST 2010
Hi folks. The time has come to pass on my local data center business,
BaseSpace.net, to someone new. I did a talk on Basespace at BBLISA in
2002. The slides, whose spirit still applies even if some of the
technical info does not, are here:
http://basespace.net/bblisa-talk.htm
BaseSpace.net is a local home-based micro data center. The key to
BaseSpace's success is that the owner lives above the data center, so
that 7x24 support is provided by being able to dash down to the machine
room in the basement when required. Any IT professional with a
reasonable level of experience, a service orientation, and a house can
successfully run and grow this business.
Colocation is billed monthly, so it is recurring revenue. Running a data
center is a bit like being a landlord: in theory, you do nothing and
someone pays you every month. Of course, in practice there is
maintenance that needs to be done, customers who need to access their
machines, or sales leads to send quotes to.
Our customers include: hobbyists who just want to own their own mail
server, moonlighting businesses that make no money, moonlighting
businesses that barely make enough to cover the cost of hosting, small
businesses that pay one or a handful of FTEs and to whom $100/month for
colocation is a fairly small expense, and even departments of large
corporations that find it easier to pay BaseSpace than to deal with the
hassle of their own IT department. Also, we periodically get startup
companies in their early stages of growth, who eventually outgrow us.
For our past 10 years of operation, BaseSpace has made around
$10-$30k/year: enough to pay the mortgage but not enough to live on.
This level of income has declined lately. When kids arrived 6 years ago
the amount of time I devoted to the business dropped precipitously. I
would estimate that I spend about 10 hours on BaseSpace per month these
days. And that leads into why I want to sell: to grow the business will
take time and mental space that with small children around I just don't
have. Realize that I have not really updated the web site in 10 years,
nor done any marketing whatsoever. With a decent marketing strategy, it
is possible that BaseSpace could grow significantly. BaseSpace sells
itself to such a degree that even with no marketing effort at all we
have almost replaced natural customer attrition.
We would prefer to sell BaseSpace.net along with the house it is in, a
2300 sq ft townhouse in Cambridge Cohousing. If we don't find a taker
for both the house and the business, however, it is perfectly possible
to move the business to the buyer's home, though some value would be
lost (eg, the infrastructure improvements to the house's electric power).
While I've received offers to buy BaseSpace from large corporations, I
would prefer to sell to an individual who will enjoy the work, continue
to provide the same personal connection to the customers, and adhere to
my founding principle: to help make the internet a place where things
are done right.
Thanks for any leads or suggestions,
- Alex Aminoff
BaseSpace.net
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