web hosting

Critical Factors to Consider When Evaluating Application Hosting

Application hosting services are increasing in demand as more business come to realize that outsourcing to a qualified managed service provider can greatly enhance the deployment process and reduce costs across the board.  To help you find a service that meets the needs and expectations of your organization, we have listed some of the important factors that must be considered for an application hosting solution.

Storage Requirements

Because storage can be a rather costly proposition, it is best to take a just-in-time approach towards your inventory.  By answering the questions below, you can draw a more accurate picture that might defer costs until they are absolutely vital:

- How much storage do you need now?

- How much storage will you need in the next 3 to 5 years

- How much additional storage will you require each year?

- Will you need to archive data and pull it from the main storage area?  If so, how much and when?

Applications to be Hosted

How many applications do you need to host and what type of applications are they?  Staging, testing, development and deployment are just some of the environments you may need hosted.  In most cases, each environment has different hosting requirements in terms of availability, operational tasks, access and support.  Make sure you assess the use and flow of data within and between these applications to precisely determine the requirements for each one.

Backup and Restore and Disaster Recovery

Before deciding on an application hosting provider, it is critical to define what is to be backed up, when and how often.  When focusing on this area, it is also a good idea to keep disasters in mind and think of what would happen if something bad occurred and the provider’s data center became completely unusable.  This is a place where you need to put a business continuity plan into effect.

SLA Monitoring and Reporting

Key performance indicators come in handy, but only when they detail what is important to your organization.  Make sure you know what levels of availability the service level agreement covers as well as the applications that will be monitored.  If monitoring reports are available, find out how they are to be structured and provided.

Root Access

System root access usually isn’t given to parties outside of the data center staff.  It is also important to know that some application providers will waive their SLAs if they can determine that a non-root access account is the cause of an outage.  Because this can have a major impact on your availability, it is vital that you inquire within the provider about their root access policies before signing the contract.

The Service Contract

When it comes to application hosting, contracts define much more than what products or services will be provided and how much they cost.  They also explain how organizations are to interact with each other.  It is wise that you go over the contract with a fine tooth comb to prevent confusion and enable a framework for dispute resolution and continuous enhancements.

Outsourcing for E-Commerce

As your online business achieves success and continues to grow, it may get to a point where you are no longer able to physically package and distribute your products.  When this occurs, it is time to consider outsourcing order fulfillment to another company.  Order fulfillment centers are abundant and all generally serve the same purpose.  However, these companies vary widely in terms of costs and methods of processing.  This is why you need to give careful consideration to the factors in this article.

Location and Shipping

Order fulfillment centers are located throughout the world.  To save yourself money on shipping costs, you should choose a location that is in close range to your customer bases opposed to something overseas.  If you are targeting a specific demographic such as the Las Vegas, it would be smarter to find a center somewhere in the west coast rather than New York.

Most order fulfillment services offer an array of shipping options. Be sure to do business with a company that enables the flexibility needed for the shipping options you plan to incorporate now, as well as any changes in the future.

Turn Around

One of the most critical aspects of outsourcing is turn around time.  You will find that each company has its own time line in regard to order processing.  Some will ship every order that is sent before a certain time on the same business day.  If that deadline is missed, the order is typically shipped out on the next day.  The most important thing here is to be aware of the structure and make sure your customers understand as well.  If orders are made after 4 pm, your customers might receive the order in two days even though they paid for next-day shipping.

Order Entry

Order entry is another factor that needs to be considered before outsourcing your E-commerce tasks.  Some of the most popular options include the following:

• Forwarding individual orders to the fulfillment center

• Manually inputting orders on a web-based system owned by the fulfillment center

• Sending a spreadsheet of all orders everyday via email

Each of these methods will have a different impact on your E-commerce business.  While you can save money by inputting orders over a web-based system, this can become hectic if your business has grown to a point where time is of the essence.  Emailing each individual order to the company might cost a little extra, but may be worth it to have orders shipped out in time.  Use of the spreadsheet is more cost and time efficient but also limits you to next day shipping.

Costs

You will find that fulfillment centers offer numerous payment scales.  Some require that you sign a contract while others will charge on a per order basis with no contract.  Keep in mind that you will be charged something for the storage of your inventory among other fees.  Make sure you have an understanding of these fees along with the terms in any contract.

Before deciding on a company to handle order fulfillment, schedule a few interviews and check out the warehouse that will be housing your products.  Make sure it is up to par and can support the growth of your E-commerce business.  With a reliable company to handle the packaging, inventory management and shipping, you focus on promoting the business and reaching new heights online.