Web hosting can provide huge cost savings to small and mid-sized businesses through outsourcing. Outsourcing is defined as the contracting out of a business process to a third-party. In the case of Web hosting, businesses can contract out their Web site requirements to an experienced service provider like Webhosting.net. By outsourcing, companies avoid the high cost of investing in networking and server technology, which often can be defined as a peripheral or “non-core” business expense.
Despite the declining cost of storage and computer power as defined by Moore’s Law, the purchase or lease of high-end servers and advanced routing equipment, along with the purchase or lease of necessary licensed software can represent an extremely expensive capital outlay to most businesses. Expertise is required just to select the equipment and it is also necessary to ensure continuous maintenance. This requires highly skilled labor and outsourcing, which by its very nature, allows businesses to escape the excessive labor costs that are associated with maintaining technology.
In our opinion, the biggest costs related to Web hosting or Dedicated hosting actually revolve around knowledge. Most small and mid-sized businesses do not have the human resources to set up a server with multiple quality, high-speed Internet connections for Web server redundancy. Most businesses also do not have the expertise to maintain server hardware, setup and update operating systems and server software on an on-going basis, and most importantly, guard the server against data security breaches. A certified IT professional can cost an organization at least $100,000 a year. And IT consultants for small to mid-sized organization can run anywhere from $150 to $300 per hour. It is much more cost effective to outsource hosting and server functions to a quality service provider, like Webhosting.net, to avoid the high IT expenses of running Web hosting services in-house.
Employees at high quality service providers typically have years of experience and are skilled at ensuring 100% Web site accessibility and reliability. They typically also use and deploy quality equipment. Importantly, the use of a Web hosting service provider allows your business to increase “time to market”. A quality hosting provider has existing infrastructure in place to near instantaneously deploy your Web site presence with the appropriate storage, memory and speed needed, and provide you with the proper tools necessary to maintain that Web presence. As all businesses know, profitability often relies upon speed to market. Attempting to build a Web presence in-house can often lead to long roll-out times, clocked in terms of days and months, because of slow decision making and even slower deployment. With a service provider, infrastructure can be deployed in mere minutes or even seconds. This is a tremendous benefit to your company, as your products and services can go online with more immediacy that if you attempted to deploy Web hosting services in-house yourself.
Data from approximately 300 U.S. companies in a 2013 MIT Sloan School of Business research study found that increases in IT outsourcing spending by a company concurrently is associated with a large drop in operating costs, especially in core non-IT functions such as sales and marketing. In other words, by adopting quality web hosting or cloud hosting services from a provider such as Webhosting.net, your business can leverage years of IT experience and expertise in order to make aspects of your regular business more efficient.