I run a small, referrals based, web and email hosting company. I started the service reluctantly, but because I felt I could help some of my existing clients with problems they were experiencing with their previous hosts. I was able to improve their experience at a moderate premium, and all was good.
I've never really advertised the service because the market is overcrowded and hyper-competitive. How could we compete with so many other options to choose from?
Well, its been a few years and hosting has proven itself to be a viable business model when there is reasonably priced and high quality professional consulting services offered alongside pre-packaged hosting products.
Therefore, after being on the fence for several years about it, I've decided to continue on with hosting, and to make it a core focus of my technology business practice. Its going to be fun!