Deploying a website builder website [closed]

Question

I want to create my own custom website builder hosting platform for a niche market. I have plans on hosting 100's plus subdomains off of one primary domain.

Here's my goal:

• Allow register user to create a website, users will be giving a sub domain as a url for his/her website(example: www.Newsite.hosting.com, wwww.newsite1.hosting.com etc....
• User's also get to choose from the many custom website templates we have created
• I planed on hosting 100's plus sub-domain at startup.
• User's will also have the ability to update there website via a cPanel on the share hosting server.
• I believe the biggest amount of data per sub-domain for 1 site will be no greater than 50MB TOP

Question:

1. Can a Baby plan or Business plan shared hosting at HostGator, manage this setup at the very beginning, or should I jump right into a Linux dedicated server plan?
2. User cPanel, WebSite building tool & template and subdomains all will be hosted on the same domain and share hosting server....is this a good idea?

This is just the basic info for a shared hosting plan

              Baby Plan   Hosting plan
Disk Space    UNLIMITED   UNLIMITED
Bandwidth     UNLIMITED   UNLIMITED
Sub Domains   UNLIMITED   UNLIMITED   

Linux Dedicated server

Processor:  Intel Xeon 3450 (Quad Core)
DDR Memory: 2 GB RAM
Hard Drive: 2x 250 GB (dual)
Bandwidth:  10 TB
Domains & sub-domain: UNLIMITED 

Answer 1

1. You need a dedicated server. You might be able to do this with a VPS like slicehost or linode . A baby or business plan would not work.

2. You would then need to license and install cPanel.

I would consult the cPanel system requirements, http://www.cpanel.net/products/cpanelwhm/system-requirements.html and the cPanel store, https://www2.cpanel.net/store/index.cgi .