Do I host my customer’s websites? Absolutely not! There is absolutely no way that any small organization can compete with the price, availability and services offered by a major provider. And that’s a good thing. If you have a site and you are paying a design company to host it, then one of things things is happening: either they are having a major provider host it (and making a profit off of the you for the privilege), or you are paying for their infrastructure. After being in application development for 20+ years I can tell you that there is a reason that businesses are moving their sites to the cloud – you get so much more for so much less.
I have instead partnered with A2 hosting to provide a different offering. A2 is widely regarded as one of the premier hosting companies in the world (see their reviews here). They use SSD drives on their servers and the difference between hosts is extremely noticeable. Because I have a collection of customers under my umbrella I am able to get a better rate for you than if you were going to sign up as a new customer. The end result is the same – you have an area that is completely isolated from other sites.