1.) Simplified Administration – Managed hosting gives you an additional level of support that stems beyond what the typical hosting service can offer. This often includes server administration and various other management tasks.

2.) Cost Effective – Though it is more expensive than most types of web hosting, managed hosting can be a very cost effective option due to the fact that it can free up time and help an organization be more productive.

3.) Enhanced Security – In the ideal arrangement, managed hosting provides an added layer of security with features such as critical system updates, disaster recovery, and data backup. Companies that are truly reliant on their web presence will benefit tremendously from a service that takes the necessary measures to ensure they are protected.

4.) Extensive Monitoring – Managed hosting typically provides an environment that is monitored 24/7. This often includes monitoring of the hardware, systems and the network itself. With such extensive monitoring, you can better assure superb performance and availability as any problems will be addressed as soon as they are detected.

5.) High-Performance – The hardware you get from a managed hosting provider usually towers over what is provided in a shared hosting arrangement. This is because you normally receive high quality dedicated equipment and are not forced to share with other customers. In the ideal environment, managed hosting can deliver performance that puts its shared counterpart to shame.

6.) Increased Reliability – Many new customers who upgrade to a dedicated server incur a significant amount of downtime because of all the technical challenges. Managed hosting can help you elude these crucial periods of downtime by putting the technical burdens on the shoulders of trained IT experts.

7.) Guaranteed Resources and Features – While all types of web hosting tend to offer great feature and resource allotments, managed hosting tends to give you significantly more. For example, you get more disk storage and bandwidth as well as more flexibility with features like programming languages, web applications, and services.

8.) Cost Savings – Managed hosting can be so advantageous that it eliminates the need for a full-time system administrator. Since the web hosting company is taking care of the bulk of administration, you can save the money that would normally be needed to pay someone to maintain your systems.

9.) Personalized Support – Because managed hosting is modeled around the concept of dedicated support, this sort of arrangement often makes it much easier to obtain the assistance you need. Almost all managed hosting services offer 24/7 support, ensuring that you can reach the IT experts when you need them.

Source: http://webhostinggeeks.com/blog/2009/12/01/nine-unique-advantages-of-managed-hosting/

The Experience Factor

While some customers have the experience needed to maintain a dedicated server, others do not. If you have a capable in-house team, you should be able to thrive just fine in this more complex environment. For the more technically inclined user, managing an entire web server is usually no problem at all. For those that have no experience or knowledgeable administrator, a managed solution may be the best option for their dedicated server. With a managed service, the hosting provider handles the bulk of the maintenance and is often responsible for making sure the server stays up and running. This generally includes taking care of the operating system, web server, applications and the hardware itself. While an unmanaged server is usually the cheaper route, managed hosting is often the best way to go if you lack the knowledge and experience needed to maintain the system.

Is it the Right Move for You?

Whether or not you have the resources needed to manage a dedicated server is a critical factor to determining if this type of hosting is right for you. If you are have the budget to take on the cost associated with leasing the hardware and feel that the hosting firm can provide you with an acceptable level of support, this could be the best move. Regardless of where you stand in terms of experience, it is critical to first determine whether your website or business demands the power of a dedicated server. If not, you could taking on an unnecessary expense and complexity that makes it more difficult for you to succeed. As long as you warrant the need, a dedicated server can be a viable option whether you possess the technical abilities or not. With the market for managed hosting services growing rapidly, you do not have to let the lack of experience deter your plans because solutions are widely available.

In today’s internet driven world, the website often reflects on the credibility of the company behind it. A dedicated server can help you a establish and maintain a credible online presence while providing your business with the best possible chance to succeed. If you are not sure of how to proceed, reach out to a few service providers for a little guidance. This way, you can gather the information you need and perhaps find yourself a good partner in the process.

Source: http://webhostinggeeks.com/blog/2009/11/17/can-you-handle-a-dedicated-server/

In-House Method

Hosting your e-commerce site in-house involves setting up a server room, purchasing the necessary hardware and software components, leasing a reliable high-speed connection and employing an IT team.  Experienced IT personnel are required to handle day to day technical aspects such as performing backups, monitoring security and basically doing whatever it takes to keep the server up and running.  The costs and complexities that come along with an in-house operation are considerable and often too much for startups and small businesses to handle.

Colocation

Colocation refers to an alternative solution that allows businesses to store their server hardware and network equipment in a facility maintained by a hosting company.  The firm provides you with physical storage space, internet bandwidth and electricity to power the hardware.  There are many advantages to this type of arrangement, including a lower cost for bandwidth and the enhanced reliability you get from the data center.  The disadvantages are that you must purchase your own hardware and actually find a provider that offers a colocation service in your area.

Shared Hosting

One of the most common ways to run an e-commerce website is through a service arrangement known as shared hosting.  In this environment, the websites of multiple companies are stored on a single server, which share an internet connection and various other resources between them.  While suitable for the needs of many, this type of service is best for companies that anticipate a small to moderate amount of traffic and have a limited budget.  This is mainly because there are strict limitations in regard to disk space, bandwidth and control.  With that said, a reputable firm should be able to provide you with a stable platform that can support the needs of both startups and small companies.

Dedicated and Managed Hosting

Dedicated hosting is a method that calls for you to a lease an entire server from a hosting company.  The provider is responsible for maintaining the hardware and network connectivity while the bulk of server administration falls on your shoulders.  This could be a downside because of all the technical challenges that go into maintaining a server, but there are number of benefits as well.  For example, you have extensive control and flexibility that permits you to run your own operating system, database servers, web applications and services.  For those who lack the experience or time needed to handle these tasks, managed hosting exists, a solution that eases the burden of server administration.  Though notably more expensive, managed hosting will allow you to focus more on promoting your e-commerce site and servicing customers rather than dealing with the all the complexities as these processes are handled by the provider.

The fact that there are so many options for hosting an e-commerce site works to your advantage.  What you need to do is a carefully assess your situation and determine which service is best for your business.  After settling on a reliable solution, the fate of your online business is in your hands.

Shared Hosting

For someone who only requires a small, basic website, leasing an entire web server just isn’t practical.  If this sounds like you, then shared hosting would be the perfect solution.  It is cost effective and specifically designed to suite the needs of small websites.  With shared hosting, the web host stores multiple websites on single server, allowing them to offer a service that is much cheaper than dedicated hosting.

Web servers are more powerful than the average computer used in the desktop setting.  They offer plenty of disk space as well as RAM and CPU.  The catch is that you are required to share these resources with other customers, a factor that could lead to performance and security issues. If your requirements are minimal, you should be able to find a shared hosting provider able to supply all the resources you need.  However, as your site becomes more popular, it is very likely that you will exceed the resources the web host is able to provide.  In this case, you need to either consider purchasing upgrades that supply you with additional bandwidth, storage capacity and other essential components.  If the provider is not able to accommodate your needs, it is time to move up to a dedicated server and possibly consider managed hosting.

Managed Hosting

Websites that experience a high volume of traffic and run mission-critical business operations are best suited for a dedicated server.  Unlike shared hosting, a dedicated server provides you with all the resources on the machine.  This includes disk space, RAM, CPU and guaranteed bandwidth as well.  On the other hand, a dedicated server calls for you to deal with server administrative tasks that can be very complex and time consuming.

In its purest form, having a dedicated server means you are responsible for all the maintenance.  This includes basic administration to keep the machine thriving on a day to day basis as well addressing any security issues that may arise.  Those who require a dedicated server but are not up for all the technical challenges often opt for managed hosting.

Managed hosting offers benefits to the website owner or business that either lacks the skills required to maintain a dedicated server or simply do not have the time to invest.  You can generally select the options that best suit your needs, freeing you up to concentrate on other vital aspects while the server is maintained by the web host.   When viewing it from this perspective, managed hosting is pretty much like outsourcing your dedicated server tasks to a third-party company.

Making a Choice

Managed hosting is the perfect alternative to the limitations of the shared server and complexity of a dedicated server.  Keep in mind that these benefits come with a higher price tag.  Therefore, it is very important to make sure you truly require this type of service before making an investment.