The majority of the Internet is run on Linux. It is fast, reliable, almost immune to any normal virus, and free. Windows servers pose a problem of licencing requirements according to the number of users. And refuse to accept more than the licenced number of users. Linux also includes the Apache web, php, mysql and mail servers. But you will need to subscribe to a business broadband connection and get a static IP address. All this costs extra. And you will need far more upstream bandwidth than normal if anyone wants to stream video or offer FTP downloads. Your upload speed would become the download speed of the site, and shared between multiple clients browsing different virtual hosts it will be exttremely slow otherwise.
Windows Home Server, as the name implies, is really only for the home environment. It’s not nearly robust enough for what you need, nor can it handle multiple websites. Frankly, nothing from Microsoft is really up to this job…
What you want is some sort of Linux-based system. There are many different flavors of Linux, but the main differences are mainly cosmetic. What I would do is start with one of the easier to use distributions like Ubuntu or Mint. While they’re mainly aimed at desktop users, you can run the same server software on them as well. Once you figure out the basics of Linux, get your own domain and website hosted, then you can look into the more server-centric distributions like Red Hat or CentOS, and learn about more advanced networking and virtual hosting. At this point you’ll be ready to buy a rack-based server (not a desktop) and start attracting customers.
However what you’re proposing is going to take quite a bit of work on your part, and even then you’re still going to have to rent rackspace & bandwidth from a larger provider anyways, so I really don’t see how this is going to even provide you with any pocket money. As a personal growth project, sure, go for it. If nothing else, you’ll now have the skills and experience to get hired as a Linux system administrator.
Definitely Linux, we currently use Debian (a linux distro) to host websites at home and it works great.
I don’t know how good your upload speeds are on your Internet connection but you might want to consider using a hosting reseller that has their website hosted on a very fast Internet connection. I use http://www.resellerspanel.com/a/alexlohrere and it works great. I’m getting a few customers now and they all seem to love it and the prices I use on my website (http://www.australianwebsitehosting.net) from this are very competitive.
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