Why? Well, let's think about it.
- At home, you don't have adequate power protection.
- You don't have a generator.
- You don't have any redundancy to the Internet.
- You don't have adequate bandwidth for any sort of major traffic. You won't get far on a standard 50/10 Comcast connection.
-The power cost of running the server 24/7 is probably more than a $5/mo HostGator account costs.
- There are significant security concerns, both physical and computer-wise. Exploits in software are found every day. Do you really want to be responsible for maintenance yourself?
- There are performance concerns.
- Etc. Etc.
The bottom line is, though, that between the cost of a server (let's say you buy one used for $1500) and the cost of the power to run the server, you're never going to break even with a shared hosting account from a major hosting provider.
As an experiment? Sure. As a production web site? Hell no.
- who says you don't? It's not that expensive to get a decent UPS or inverter-charger, or if you want a more serious setup you get -48v rectifiers and inverters and good surge protectors. It may be expensive up front but you only have to pay for it once. You need protection for your home stuff anyway so should already have at bare minimum a regular UPS
- why not? Unless there's some stupid bylaw or HOA law if you are unfortunate enough to live in such area, nothing stops you from getting a generator. Again, one time cost
- that could be an issue unfortunately, especially because ISPs are allowed to be a monopoly. We need more ISPs and more competition, but yes this could be an issue. Depends how serious uptime is and how reliable your ISP is.
- here we're assuming that fibre is available. Obviously a bad idea otherwise.
- power cost is very small (definitely smaller than 100 bucks which is a typical minimum cost for a hosted server). Look at your bill, your actual usage is maybe about 50 bucks, the rest of the bill is all the BS fees they add after. Also a $5 dollar host gator account is an oversold shared hosting account, not a dedicated server. Can't compare the two. Most of these super cheap hosts oversell their resources. Try to use it as a place to put your backups and see how long they let you do that.
- and data centres are magical security barriers that will stop hackers? you still have to manage your own security if you are hosted in a data centre. They may possibly have IDS firewalls but nothing stops you from doing that at home
- performance? At home the sky is the limit. You are not paying anything extra per month based on server performance so build the biggest beast you need, a cluster, does not matter, because you're only paying for it once.
I've had my online stuff on a dedicated server for about 5 years, paying $100/mo for a crappy core 2 quad with 4GB of ram and 500GB disk space. I paid that server off like 5 times. If I was allowed to host from home I would have a better server without paying anything per month.
I am not sure where you are looking for hosting but I never have "RAM" issues or disk issues. My recent disk allocation was upped to 8TB and pay $100 a year so.
The problem is that it isn't "Way cheaper." Hosted remotely I don't have to deal with accessibility. My podunk site is hosted on 8 different carriers. Sitting on EMC storage on hosts with more than 1/2 TB of RAM per host.
Where are you hosted that you can get that much resources for so cheap? The highest I've seen is 2x2TB drives at most providers, and it's very expensive to add more, and they don't give you the option to outright buy the hard drives you need to pay extra per month. Here's examples of what I mean:
http://www.caratnetworks.com/in-stock-dedicated-servers.php
https://store.softlayer.com/configure (that's US dollars too so even more expensive)
Most other providers if you google for more are similar configs. It seems most server providers are about 5 years behind as they just want to reuse old hardware to get more money out of it.
This is actually the cheapeast I've found, but they're never in stock:
http://www.ovh.com/ca/en/dedicated-servers/
I've been thinking of moving my server to one of those once they're in stock though. But still, if I was allowed to host from home it would be practically free. Heck, it would be free, I'm paying for internet anyways.
Someone in another thread was saying that you can get motherboards now that only use like 20 watts. So you could build a server on that platform as well and power would really be non issue. But even then my whole rack uses about 400w which is not that much. It cost me less to run all that stuff than my single crappy online server.
ISPs need to be forced to be common carriers and people hosting stuff at home should be more common. It would at least somewhat help decentralize the internet a bit, right now everything is too centralized. A data centre goes down (it happens) and a LOT is taken out with it.