There is a lot that must be taken into account when evaluating e-commerce web hosting solutions for your small business.  Among several key factors, reliability needs to be considered as well as security to make sure you web transactions and customer data are protected from hackers and criminals looking to commit identify theft.  It is important to know that there are many options available to you in regard to the type of service.  Two of the most common approaches involve running your small business on a shared or dedicated server.  Each method has its advantages and disadvantages, which we will discuss in this article.

Reasons to Opt for Shared Hosting

Shared hosting offers numerous benefits and several of them extend into the e-commerce sector.  For one, it is very affordable as you can easily find a feature-loaded plan for under $10 per month.  In addition to that, you typically receive all the tools and services you need to get your online storefront up and running.  This includes shopping cart programs, web analytic tools and support for SSL certificates to secure your business transactions.  However, while shared hosting can provide you with a relatively secure platform, it can never assure the level of protection and reliability that can be obtained from a dedicated server.

The Dedicated Advantage

Though an advanced and often more complex hosting solution, a dedicated server is not exclusively geared towards larger companies.  In fact, it can deliver the same benefits to small businesses and entrepreneurs looking to establish and grow their presence on the web.  Leasing a dedicated server will cost you more than a shared hosting plan, but it can also guarantee you better overall security and reliability, both of which are vital for anyone who wants to be make sure there business is always available.  For many companies, their website serves as the revenue generator that keeps the business going.  If these are your plans, you need to make it a priority to invest in a solution that ensures your site can be accessed at all times and provides the secure environment your customers need to feel safe.

Capacity and Complexity

When leasing a dedicated server for your small business, you are assured a guaranteed allotment of essential resources such as disk space, RAM and bandwidth.  These features alone can give you a website that performs exceptionally better than it would in the shared hosting environment.  However, you should keep in mind that dedicated hosting is one of the most complex types of web hosting you can sign on for.  Unless you opt for a managed service, you will be responsible ensuring and monitoring security, performing configurations and backups, installing software and general maintenance of the server.

There are quite a few small businesses that can thrive with a shared hosting platform and several others that cannot.  Making a choice is difficult and the final decision will depend on various factors, including your budget, level of expertise and the requirements of your business.  Most importantly, it will boil down to the overall quality of the host providing you with service.

Source: http://webhostinggeeks.com/blog/2009/09/22/server-options-for-e-commerce-hosting/

In-House hosting or outsource services; If you have to ask yourself this question, going with a web hosting service is likely the best option.  However, before making the final decision, you should determine what resources you have available and where you need to focus your energy to meet your goals.  Whatever road you take, each will require careful planning in order to come out with successful results.  Let’s go over these two forms of hosting to help you better determine which option is right for your needs.

Benefits of Outsourced Hosting

Outsourcing your internet hosting processes to a third-party company is a wise move whether you run an online business or simple personal site.  The minor drawback is that you will be forced to give up some flexibility.  For example, you are essentially locked into the hosting provider’s system, technologies and policies.  However, web hosting services are far less restrictive than they were years ago.  In fact, there are several companies that allow you to have a great deal of control and flexibility with your own server.  Many of today’s web hosts provide you with administrative control over your entire domain.  This typically includes the ability to add and modify database entries, set up email accounts and manage user permissions all without the aid of the network administrator.  If a particular host cannot provide you with these standard luxuries, they aren’t even worth dealing with.

The advantage of outsourcing to a professional web hosting service is that you can usually count on more reliability, a greater level of availability and cost savings right from the jump.  The burden of servers and other network hardware do not fall on your shoulders.   If the operating system and web server require updates or security patches, you can sleep well by knowing IT experts are on top of the matter.  When choosing to run these operations internally, you are opening up an entirely new world of responsibility and complexity.

Disadvantages of In-House Hosting

Successfully hosting your IT operations in-house is possible, but it does come with its fair share of disadvantages.  There are a number of costly and complex factors you need to consider, including the following:

- Server platform for web server and database applications

- Efficient disk space allocation

- Bandwidth limits

- Network connectivity

- Data Backups

- Security

- Environmental Issues

- Day-to-day Maintenance

The above are elements most smaller businesses simply cannot afford or maintain internally.  If this sounds like your situation, then an in-house hosting solution is most likely out the question.

Conclusion

With the wide variety of solutions on the market, professional web hosting services are ideal for whatever you plan to accomplish online irrespective to the size of your website or business.  While the price varies greatly among the type of service and company you choose, this option is far more cost effective than trying to host these complex technologies on your own.  On the other hand, if you have the space, manpower, financial resources and the need for the utmost control, an in-house set up could turn to be the best solution.

Source: http://webhostinggeeks.com/blog/2009/07/29/should-i-opt-for-in-house-hosting-or-an-outsourced-service/