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Analyzing the 4 Most Common Reasons to use Managed Hosting

Every business has its own unique list of reasons why they would chose to utilize managed hosting. While the specific reasons vary greatly from one business to the next, a majority of reasons can be broken down into four basic categories. These categories not only highlight the benefits managed hosting can provide, but also common scenarios small and medium-sized businesses face on a regular basis.

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Limited IT Knowledge

A common issue small businesses face is maintaining an IT staff with limited knowledge in relation to server maintenance. Many IT professionals specialize in applications and software rather than hardware. An easy way for businesses to ensure their IT staff is focused on applications and software used by employees is by outsourcing server maintenance to managed hosting providers. Maintaining a staff of IT experts and providing them the necessary time to complete the daily hardware and software maintenance required for optimal server performance is expensive and often undercuts the time spent on internal network management. Since managed hosting providers oversee an extensive quantity of servers, it is more cost efficient for them to hire and train the necessary IT staff van for every business to do it individually.

Limited Time

Another common reason businesses turn to managed hosting services is because of time limitations. Internal IT staff has a limited number of hours to upgrade, manage, and maintain the inter-office network and business essential applications. Adding the additional time required to maintain servers is often impossible. By leveraging managed hosting, businesses can gain the benefits of a consistently maintained set of servers without allocating their own IT staff’s time to it.

Limited Capital Investment Capabilities

As businesses grow it becomes necessary for more servers to be utilized. Many small businesses do not have the necessary capital to invest in purchasing more hardware on a regular basis. This doesn’t include the additional funds necessary to upgrade or update currently used hardware. By shifting this responsibility to managed hosting providers, small businesses can transfer potential capital investment resources to monthly operating expenses. Additionally, managed hosting providers have significantly greater purchasing power because they buy servers in bulk, thus reducing their costs. This is an option not available to small businesses because they would rarely purchase servers in large quantities.

Next Step in Transition/Growth Process

The final common reason businesses turn to managed hosting is because it is the next logical step in the transition or growth process of the company. With managed hosting, businesses outsource a majority of the control and responsibility of regular server purchases, maintenance, and management. This allows the business to focus on promoting long-term growth rather than diverting significant funds to purchasing hardware. As the company grows, they can slowly invest in servers of their own. When this happens, it is easy for businesses to transition front managed hosting to managed colocation.

While managed hosting is not the ideal solution for every situation, there are a variety of scenarios it proves to be the best option. It is particularly beneficial for businesses with limited IT knowledge, limited available time, and limited capital investment capabilities. It is also an excellent solution for businesses attempting to slowly transition to managed colocation.

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