Setup Fee - Revenue Recognition

We have a question regarding reveneue recognition.

Let us say, your company is offering a hosting service for which you are charging the customer a Setup Fee. In this case, let us assume that all the activities for the setup fee are completed before the starting of the hosting.

How would do you recognize the revenue for the setup fee? Would that be immediate or over a period of the hosting service(let us say for 3 years)?

What would you do if the customer terminate before the contract period?

Thank you for your help.