I noticed you could buy a small server for ~$300. It will have 8Gb of ram and 250Gb of harddrive space. According to speedtest.net, my upload speed is 58Mbps, DL speed is 16.8Mbps, and my ping is 22.
I would like to know if this would be enough to support 20-30 players and some bukkit plugins.
I currently host my server from fragnet.net, however it costs ~$200 a year and I need to upgrade which will put it closer to $300 a year. I feel buying or building my own server would be more beneficial in the long run.
Also, what do I have to worry about hackerwise if I host it form home?
It should be enough, usual minecraft servers would use up 10Mbps up/down max. Beware of the processor though! Fragnet probably uses E3/E5, a server that cheap may not have the best processor! Also, hacker wise, it is best to secure your server with a SHA256 password, which can take years to crack. You may also need to buy a hardware firewall, since most homes do not have DDoS protection.
Almost all ISPs forbid hosting servers using their residential connections (including Verizon, ATT, Comcast, Time Warner, etc.). Hosting a server for personal use as a Minecraft server is one thing, hosting it for commercial purposes is a good way to get them investigating your use. There is a high chance they will throttle your connection.
Additionally, home hosted servers do not usually have the redundancy that comes from a datacenter. Redundant power, cooling, fire supression, networks, etc.
If you are hosting it at home for personal use it might work out, it really depends on if you get throttled, and if your connection will hold up over time. This is also a good way to open up your network to a DDoS/DoS attack.
I'd highly recommend renting a dedicated server, or if you insist on having your own hardware, saving up for a good Intel Xeon E3-based server and colocating it.
You cannot entrust a commercial hosting product to a home connection. You really just can't. No residential ISP is going to supply the redundancy, throughput (bandwidth), routing, or simply uptime that a data center will. You may also have concerns about proper cooling and power if hosting from home.
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Head of Operations - HostVenom, LLC dba Ready2Frag
A significant number of people so far have pooped on your parade mentioning things like ISP's restrictions on servers, commercial load worthiness of the hardware you suggested, etc.
I only have the following to say.
If its your own server for you and your mates, and none of them care about it being 24/7 100% for sure. - Shifting it home will be a great opportunity for you to learn new skills & gain a greater appreciation for the software stack that runs your min craft server.
If you do move it home, and it is just for you and your mates... you are not getting DDoS protection, probably don't need it anyway, and the person suggesting you get a hardware firewall for your home line
You may also need to buy a hardware firewall, since most homes do not have DDoS protection.
seems to have missed the rather obvious fact that if your home line is DDoSed then your line is maxed out, your server is unreachable because your modem/router is choking to death under a tsunami of packets you don't want. I recommend the use of your modems port filtering or DMZ capability (id be extremely surprised to find yours doesn't have these) and the use of a good software firewall like pf or iptables on your server. Which brings me to the next point, if you bring the box home, run it on linux or freebsd. Don't bother pirating a copy of windows to run it, your only hurting yourself. Using a UNIX type operating system will give you tools like the ones i mentioned before pf and iptables, that will let you run the server at home a lot easier and a lot safer than a windows box.
Lastly, I think everyone should have a home server to tinker on. If running your own minecraft server is what encourages you to learn some new skills and possibly develop another new hobby, its not a bad thing in the slightest to explore.