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/Peo, FreeWebSpace.net
cPanel may be popular ... but it is also the hardest cp to use. Users (especially beginners) will flock to the simpler control panel as time goes on. Remember, most of our users now are going to be those who are completely brand-new to the Internet as a whole - they don't want to fuss with cPanel. There is an untapped market of 6 billion people who have never touched the Internet - these people are coming online now, at an increasingly rapid rate. How can we reach them? By using control panels that are much simpler than cPanel.
So to answer your question ... yes, I think an LXAdmin free host could be very successful.
LX admin is equally competitive and have more features than Cpanel the thing is its not that much famous in the hosting market but its having strong base in VPS segment, this free hosting area also it will enter soon