Hi Duke,
The answer really is no, both for your own benefit and that of your customers. There are a number of things for you to consider fully before you make a decision:
Hardware - You can't use your computer really, physically you could as it has the capability but you need to dedicate your CPU and your RAM to your customers and as they are paying, they MUST take priority. Once you start running database sites you will see your server load jump. Not only that but you wouldnt want people ftp'ing and rdc/ssh'ing to your personal box as it may not be as secure as you think. So firstly you need to purchase kit (this will also include switches, routers, hardware firewalls etc).
Software - You will need to run an OS on the box, Windows - going to cost you a fair bit to licence the server if you go for windows, do you also know it well enough? Obviously I do not know your background but if someone called you and said that they were unable to access their site, but you could - would you know where to start? Linux, linux and Unix are the more stable of webhosting OS's, do you know it enough to install/administrate and configure? Would you know how to lock it down from intrusion and config firewalls etc?
Legal - If a company decide to have a site on your server then well done! what happens if they run a shopping cart and your hosting provider has a problem and your client cannot get any business..... will they sue the upstream provider? NOPE they have no contract with them, they have a contract with you!
You talk of Oc connections etc at home...um....yeah - not going to happen. You want to be billed at the 95%ile on a multi-tiered direct fibre connection to your house? Your house has no redunancy, no fire suppression, no security, no air conditioning (all this I am assuming of course).
It really is a highly impractical solution. If you have ideas about starting a business then operate as such from the beginnning. We offer services to help in these situations and if you would like further information I would be happy to supply you with information on virtual servers, reseller accounts, dedicated servers and shared packages.
If however you simply plan to host a couple of sites for your mum, brother and mates then there is a) no reason not to do it at home and b) no reason to have anything other than a cable/dsl connection at home.
You will need to get an external IP address and configure some minor routing but other than that you should be fine. Just whack a copy of IIS on your machine at home and you will be away.
I really hope this helps give you a bit of an idea of what is involved and this really is only a small overview. If you are serious and would like to get further information then please do give me a shout and I will be more than happy to give you any information I can. I am now MD of a web development and hosting company and when I started I was 1 bloke in a bedroom with a PC so I have learnt all this the long, slow and very painful (and expensive) way. If I can help you avoid some of the pitfalls I would be happy to.
Thanks
Lewis
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