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I was just wondering, how exactly does a hosting company work. Do they buy a dedicated server and run a couple of servers of that and if they need to buy another? Because let's say one server was being DDoSed wouldn't that affect all the other servers running on that dedicated server or does it only affect them since they are all generally assigned different IP addresses. Just wondering would be great to hear an actual explanation.
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As far as for the DDos matter if your hosting provider doesn't provide DDOS protection the whole server will be down.
Secondly you can host game servers on VPS also as dedicated servers improve performance but cost alot
You will however need to know some know how's about linux command line and a little knowledge of Web Development
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A hosting company can really depend on the situation, I myself if I was to run a game hosting company I would colocate my own servers into the OVH Canada location since I live like a hour away, other locations of course I'd buy a dedicated server and the main purpose in grabbing a dedicated server instead of a VPS is simple. The more actual cores, the more RAM and not having a shared network port and instead had a dedicated port for network performance which leads to more sales and more money.
You would first need to likely get a WHMCS and a game hosting control panel license along with a SSL certificate.
I would normally start off with two dedicated servers both located in different locations, normally for game hosting you should at least provide one location with DDoS protection and the other location if your host doesn't offer protection normally what is going to happen is they will nullroute the IP being attacked. So normally try to keep only like 3-4 clients per IP so not so many are affected from the nullroute and you could also offer dedicated IP addresses so people can use the default port such as 7777.
A good thing to offer to any client who is being attacked is to transfer them over to your protected servers.