[alttab]

Social networks aren't open for competition like VPS hosts are. People us hosting for certain features, uptime, or price. People use social networks simply for the fact that others are using it too. It entrenches players easily.

Look at Craigslist. The UX sucks and they haven't done anything with it in a while. But people use Craigslist, with no one able to displace it at scale, simply because it has gravity and users don't go elsewhere. Niches is the best way to unentrench a social network, but these are just as saturated as vps hosts and aren't likely to get investor attention. I would cut your losses and find lower hanging fruit.

[lyetzz]

I wouldn't quite consider social networks and VPS hosts to be just as saturated as one another. Building a social network from the ground up requires time, some creativity, the ability to bring something unique to the table, and forming a team that's just as passionate towards an idea as you are. Running a VPS company, on the other hand, requires an install of a hypervisor and a ticket/billing system. I'd prefer to contribute something that requires a bit more thought and energy. First, I'd like to weigh my options for this particular project, rather than jumping ship this early and heading down another path.

[alttab]

You make a valid point. Vps is spessentially a service industry vs a product. That said, wih a social network you are 99% likely to fail. Proving me wrong is worth a billion dollars, the question is what kind of goals are you setting for yourself.