In-house server administration is one of the most resource consuming activities in many companies, from small family businesses to the largest corporations. But, while blue-chip corporations with multi-million dollar IT budgets can afford sinking money, time, and human resources in extensive in-house data centers, small to medium businesses (SMB) and freelance professionals cannot afford the luxury of investing in pricey internal administration services.
Managed hosting services have emerged as the solution to the conundrum faced by countless small business owners and IT managers: how to keep server administration expenditures in check, while ensuring a reliable functioning of the hosted websites or web applications. Currently, the market is flooded with managed hosting offers from various providers. Clients can find it difficult to decide which hosting company provides the best total cost of ownership and return on investment. Some providers advertise managed hosting services packages at unrealistically low prices; others do offer managed services but the cost of the service is prohibitive.
Clients can identify the best option for their web hosting needs only through careful research. But doing your research is certainly worth it when it comes to purchasing a managed web hosting solution. In some situations, outsourcing server management to a specialized managed hosting provider can decrease IT costs up to 60% when compared to in-house hosting. In the following article, we show you how moving to a managed hosting solution can help you cut costs and free up personnel for other tasks. We also discuss outsourcing mail server and database server administration, two areas where savings can be substantial. Let’s start with a quick overview of the costs implied by hosting a website or web application in-house.