Find your niche and go for it, there is so much competition it's important to go for that small niche and then deliver an outstanding service, they will stay with you forever and do the word of mouth recommendation for you
Go latest, by that i mean offer Cloud Hosting as mostly users are concerned about how updated company is with their offerings.. Probably we can't really match prices with Digital Ocean or AWS or Google's but we can atleast start to offer what really users needs at the moment.
If that can't be done then probably offer aggressive prices but don't oversell. Provide niche based VPS, like Pre-Wordpress Installed Ready Blog or Pre installed scripts like node js.. also you may try offering your listing at Google Adwords.
A lot of users are moving to Cloud because of its uptime guarantee, so yes, it is important to offer all latest hosting services.
The Virtualization technology you use on your servers also matters to customers.
The large hosting companies engage them by making good offers by providing ranges of hosting services such as cloud hosting, dedicated hosting and VPS hosting. Bloggers are careful about their own image and hence choose the brands with caution. It is important to impress authoritative bloggers with quality of hosting.
To start the hosting business VPS is the best option, you have full access to your server once you buy VPS. In VPS if you choose Linux Server the install cPanel and WHM License. And if you wish to go for Windows then choose plesak panel. Both panels are easy to manage and doing your system administrator job automatically as per configuration.