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.

In-house vs. Colocation

Hosting your e-commerce business in-house is a do-it-yourself solution that calls for you to purchase the hardware, software applications and lease an internet application.  It also means you need an expert staff to maintain these vital components.  You need to think about server administration, network monitoring, data backups, security and much more.  This is independent method is the most costly way to run your business online.

Colocation is the perfect alternative to hosting your business in-house.  This is the kind of arrangement where you store your server hardware in the provider’s data facility.  They supply you with you an internet connection and the power necessary to run the equipment.  The major benefit to colocation in comparison to an in-house solution is cost savings.  The key is finding a provider you can rely on to keep you online.

Shared vs. Dedicated Hosting

Shared hosting is the most affordable way to get your e-commerce business going, a situation where you share a web server with other users.  With this type of hosting, you are sharing the actual hardware along with the operating system and other critical resources.  Shared hosting is often the first choice of small businesses who don’t have demanding needs.  It also quite limited in terms of control and is prone to more stability and security issues when compared to having your own server.

With dedicated hosting, you sign up for a hosting plan and have the server all to yourself.  You have your own internet connection, operating system and all the other resources that are tied up in shared hosting.  The server can be enhanced with your own software applications, programming technologies and security mechanisms.  Because performing these tasks are more complex than a shared hosting solution, managed hosting exists to aid those with limited server administration skills.

Dedicated and managed hosting services are geared towards businesses that receive a high level of traffic and require maximum stability.  The major difference between these solutions and colocation is cost as you are paying a monthly or annual fee just to lease the server opposed to owning it.

Conclusion

As you can see, there is lot more that goes into e-commerce besides opening up a store and marketing your products.  Finding the right type of service is so critical because it forms the very backbone of your online business.  Ultimately, the solution for you depends on your expertise, manpower, budget and requirements.

Choosing a Provider

When deciding to invest in colocation hosting, choosing a provider is the most important step in the process.  As with any type of hosting, you should first determine your individual needs, write out a list and keep it in front of you while listening to offers from different providers.  It sounds elementary but if you don’t, you could be easily sold on aggressively marketed services instead of getting exactly what you need.

Below we have listed some factors that must be considered when searching for a colocation provider:

Technical Support

The level of technical support should play a huge role in your final decision.  A good provider following industry standards will offer support around the clock via phone and email.  It is important to keep in mind that unless you pay an additional fee for maintenance, technical support probably will not cover any issues with your server.  Technical support offered by a colocation provider generally includes addressing connectivity and setting up the hardware.  In any event, getting a quick response is vital.

Redundancy

Equally important is redundancy as the provider’s infrastructure is what will ensure that your hardware stays running.  We strongly recommend that you learn some background information on the connection to make sure you get the best performance.  Even if you have a high performance server and all the best hardware, you could still experience unacceptable downtime if the provider doesn’t have a stable internet connection.  A respectable colocation host has multiple backbones in place to provide a stable, fast connection to the internet..  Furthermore, they have other redundant systems such as 24/7 monitoring, climate controls and backup generators to keep you online in the case of a power outage.

Price

We saved price for last because although you don’t want to overpay for anything, going with the cheapest colocation provider isn’t always the best decision either.  Choosing something more affordable is often tempting but could end up resulting in downtime if you choose the wrong company.  The most important thing is to understand the contract and the services you are paying for.

Proceed with Caution

Colocation is one of the biggest moves you will ever make in regard to your business.  We have heard far too many stories of business owners who were bombarded with hidden fees from hosts because they overlooked something as simple as a network card for their server.  If you are financially strapped, dedicated or managed hosting might be the way to go.  However, if you are certain that colocation is the right move, take extreme caution when selecting a provider.