How can a company decide what the right decision is when it comes to outsourcing? A growing percentage of companies are reaping the benefits of leveraging technology to streamline business operations and automate their business processes to create greater efficiencies by turning to outsourced web hosting. In today's economy, more and more small to medium sized businesses with no IT staff, or an already over-burdened IT staff, are finding there is no other choice. However, even with companies that have the resources necessary to host their own websites are looking to outsource their hosting needs. For these companies not resources, but the issue of ensuring that the hosting environment is secure, reliable, and scalable is why they look towards outsourcing. Learn the pros and cons of outsourcing and how NeoSpire can help.
WHICH IS BEST? INHOUSE VERSUS OUTSOURCING WEB HOSTING A growing percentage of companies are reaping the benefits of leveraging technology to streamline business operations and automate their business processes to create greater efficiencies by turning to outsourced web hosting. For small to medium sized businesses with no IT staff, or an already over-burdened IT staff, there is often no other choice. According to the Aberdeen Group, nearly 70% of small and medium sized businesses outsource some or their entire web hosting needs. However, even with companies that have the resources necessary to host their own websites are looking to outsource their hosting needs. For these companies not resources, but the issue of ensuring that the hosting environment is secure, reliable, and scalable is why they look towards outsourcing. The Right Decision For some businesses the decision to host in-house or to outsource is based purely on price, but they fail to consider the whole cost. If your web presence contains sensitive data, then outsourcing hosting duties does entail assuming some risk. While all hosts promise to protect the security and privacy of your data, it can be very difficult to distinguish who might ever violate that trust or how they would react if anything should go wrong. Of course, an in-house facility may not be 100 percent safe either, but there is some comfort in feeling it is under your control. In the end, a business should consider the cost and feasibility of hosting in-house versus the cost to outsource. A business leaning toward outsourcing to a hosting company should do their due diligence in terms of researching and interviewing prospective hosting companies. Hosting Options Managed hosting is not only about storing website files. Most hosting companies, like NeoSpire, offer a range of hosting solutions to accommodate the diverse needs of small and medium sized businesses. These solutions usually range from hosting small static sites in a shared environment to hosting larger, database-driven sites on minimally shared or dedicated machine. With the trend moving away from static websites-even for a small sales and marketing website, today's hosting companies need to be able to provide more advanced services such as the ability to set up, host, and support database solutions such as Microsoft SQL Server, Oracle, and MySQL. Additionally, website hosting and email hosting go hand-in-hand. Most companies who are outsourcing their web hosting are also outsourcing their email hosting. Security Security is something that cannot be separated from either web hosting or email hosting. In today's world, a hosting provider must have systems in place to minimize the threat from hackers and viruses. This means such security threats must be continually monitored, and the latest software and security patches must be tested and installed. Additionally, daily backups must be performed and such files should be stored off location. In terms of physical security, hosting facilities should employ 24/7 on-site security guards. Entry into the facility should require an ID badge and an escort for visitors. The facility should also be under constant video surveillance. Power to the facility should be obtained via separate power feeds from separate power grids. The facility should be protected by a fire detection and suppression system with a direct alarm to the local fire department. All essential equipment should be fully redundant, and "hot spares" should be on-site at the facility. Finally, the facility should be equipped with stand-by generator power supplies.
Costs The decision to host in-house or outsource to a web hosting company usually comes down to cost. Realistically, what is the cost to properly host a website in-house? ƒ Equipment: A server and communications gear (routers, etc.). One-time cost: $5,000 to $15,000. ƒ Communications: Typically a T-1 line (or fraction thereof). Annual cost: $8,000 to $12,000. ƒ Physical location: A room for the server and worker(s) that is secure and has communications access. This is dependent on location and a variety of other factors, but approximately $5,000 a year. ƒ Staff: At least one dedicated IT specialist. Other technicians and specialists may be needed from time to time. Yearly cost: $50,000 to $75,000. In total, the minimal operating costs in-house can reach $58,000 to $107,000 the first year, with $50,000 to $100... [download for more]