[dudeson]

At first i would suggest you buy a VPS ( http://virpus.com/ ) Begin with a VPS and not with your own physical servers. The competition is large and your investment might not pay off. With just one server you can handle 100 costumers at ease so start with a VPS and see how business will go and then buy your own servers.

Hope that helps. Let me know

[jameshk]

I'll be host VPS's so it would be inefficient, thanks though.

[sitkack]

You don't need your own hardware. There are literally thousands of colo server providers that will rent bare metal machines, you can put any virtualization tech you want on these. Lots of VPS providers run on say hertzner or similar.