May 4, 2017

What is Server Hosting?

Paul Painter, Director, Solutions Engineering

Server hosting is an infrastructure delivery model that provides IT users with remote access to server resources (CPU, Memory, Disk, etc.) in order to power applications and store data without the hassle of buying, configuring and maintaining the server hardware themselves.

In this primer, I’ll cover the main benefits of this delivery model, detail the most common types of server hosting and touch on other frequently asked questions.  

Why choose server hosting?

There are many benefits to server hosting, including, but not limited to, faster setup time, monthly payments instead of large capital expenditures, and ongoing upkeep so you can focus on your business as opposed to routine infrastructure maintenance.

1. Faster setup

The legacy process of ordering and shipping servers to your office or data center often takes weeks, if not months. In many cases, however, hosting providers can deploy, configure and make accessible servers for remote access within minutes of ordering. A reduction in deployment times means faster time to market for the businesses’ services..

2. Monthly payments

Server hosting allows you to avoid large capital expenditures for hardware that depreciates over time. Instead, you simply pay a monthly server hosting fee to access the resources remotely. The payments cover things like break-fixes and other important aspects of server hosting such as the space, power and cooling the server uses. The monthly payments also include bandwidth usage.

3. Ongoing upkeep

Server hosting also removes the burden of worrying about all the work that goes into just keeping servers up and running 24/7/365  —  e.g. managing networks , power, cooling, security, hardware repairs,, software updates, etc. This gives IT users time to focus on projects that matter and not on the mundane task of keeping servers up and running.

What are the different types of server hosting?

There are many different types of server hosting delivery models that aim to help IT users and businesses achieve varying degrees of technical and financial results. Here are the most common:

Shared Hosting

Shared hosting is an inexpensive way to host simple, low traffic websites and blogs. Server resources are divided up into smaller shared hosting plans to give users an easy way to have a web presence. There can be hundreds or thousands of shared hosting accounts on a single server depending on how the hosting provider sets it up. Server resources are shared across all accounts.

VPS Hosting

VPS hosting is similar to shared hosting, but in this case server resources are dedicated to a particular account to minimize the risk of resource contention and degraded service for certain users. There are generally fewer VPS accounts on a single server than in shared hosting. As traffic and resource requirements grow, users tend to ‘graduate’ from shared hosting to VPS.

Dedicated Server Hosting

As the name suggests, dedicated server hosting provides the user with full access to all resources on single, dedicated server. There are no other customers on that server. There are many benefits to opting for dedicated server hosting such as full control over resources, enhanced security and root access. Dedicated server hosting is the next step up from VPS hosting, allowing customers to power mission-critical, resource-intensive applications.

Public Cloud Hosting

With the introduction of virtualization, public cloud hosting is most commonly associated with companies like Amazon Web Services (AWS), Microsoft Azure and Google Compute Cloud. In the simplest terms, public cloud hosting provides on-demand, self-serve access to compute and storage resources over the internet in a multitenant environment. Using virtualization technologies like VMware, Hyper-V, Xen, KVM, and others, public cloud hosting provides a scalable, redundant way to architect large hosting environments that can be scaled up or down on the fly.

Private Cloud Hosting

Like dedicated hosting, private cloud hosting dedicates all the server resources within the private cloud to a single customer. Think of a private cloud as a bunch of dedicated servers that are virtualized to give a large pool of resources that can be managed as needed. Private cloud includes all the benefits of a public cloud, like redundancy and self-serve access, but without the shared attributes of a multi-tenant environment. Hosted private cloud provides inherent security benefits since it is single-tenant and also removes the risk of noisy neighbor issues.

Hybrid Cloud Hosting

When complex, distributed applications and data require use of more than one hosting deployment model, hybrid hosting enter the landscape. This could be combining dedicated server hosting with public cloud hosting, or private cloud with public cloud hosting. Hybrid is simply the use of more than one delivery model to achieve businesses infrastructure goals in the most performant and cost efficient way.

Colocation

If you already own servers but need space, power and cooling to keep them up and running, colocation could be a good fit. Colocation offers greater perimeter security than most customers can achieve on their own, and is more reliable in terms of uptime since the data center provider should have strict requirements for power and cooling redundancy.

How do the different types of server hosting compare?

To help choose the right hosting model, here’s a quick comparison of the main types based on key factors:

Hosting Type

Cost

Performance

Scalability

Security

Ideal For

Shared Hosting

Low ($1–$10/mo)

Low (shared resources)

Limited

Basic

Small websites, blogs

VPS Hosting

Medium ($10–$100/mo)

Medium (dedicated resources)

Moderate

Moderate

Growing websites, small apps

Dedicated Hosting

High ($100–$1000+/mo)

High (full control)

Limited (fixed hardware)

High

Resource-intensive apps, enterprises

Public Cloud

Variable (pay-as-you-go)

High (scalable)

Excellent

Moderate (multitenant)

Scalable apps, startups

Private Cloud

High ($500–$5000+/mo)

High (dedicated)

Excellent

High (single-tenant)

Sensitive data, regulated industries

Hybrid Cloud

Variable

High (customizable)

Excellent

High (configurable)

Complex apps, mixed workloads

Colocation

Medium–High (depends on owned hardware)

High (depends on hardware)

Limited (fixed hardware)

High

Businesses with existing servers

Managed vs unmanaged hosting

Server hosting can be offered as managed or unmanaged, depending on the level of support you need:

  • Managed Hosting: The provider handles routine tasks like software updates, security patches, backups, and monitoring. This is ideal for businesses without dedicated IT staff or those wanting to focus on their core operations. For example, a small e-commerce site might choose managed VPS hosting to avoid dealing with server maintenance.

  • Unmanaged Hosting: You’re responsible for managing the server, including updates, security, and troubleshooting. This suits technically proficient users who want full control and are comfortable with server administration. A developer building a custom app might prefer unmanaged dedicated hosting for flexibility.

Managed hosting typically costs more but saves time, while unmanaged hosting is cheaper but requires expertise. Check with your provider to see which options they offer.

Is server hosting secure?

There are varying levels of security across all types of server hosting, be it shared, dedicated, public cloud or hybrid cloud.

In general, server hosting is going to be more secure than trying to maintain and secure a server or servers on your premises. This is because server hosting providers have taken rigorous steps to ensure security and multiple layers, starting with the physical building the servers reside in. Most data centers have strict access controls starting at the gate that surrounds the building all the way to the data center floor  —  armed guards, video surveillance, secure access controls, and more.

Beyond this, there are steps that can be taken to further secure a hosted server environment all the way to the application layer.

How do I choose a server hosting provider?

Selecting the right hosting provider is as important as choosing the hosting type. Consider these factors:

  • Reliability: Look for providers with strong SLAs and uptime guarantees (e.g., 99.9% or higher).

  • Support: Ensure 24/7 customer support via phone, chat, or email, especially for managed hosting.

  • Scalability: Check if the provider allows easy upgrades or scaling (e.g., adding resources or switching from VPS to dedicated).

  • Geographic Reach: Data centers in multiple regions can improve latency for global users.

  • Reputation: Read user reviews and case studies to gauge reliability and service quality.

  • Cost Transparency: Watch for hidden fees like bandwidth overages, setup costs, or premium support charges.

Request a trial or demo when possible, and compare multiple providers to find the best fit for your budget and technical needs.

How much does server hosting cost?

Server hosting can start for as low as $1 per month for small shared hosting plans to as much as hundreds of thousands of dollars for hyperscale infrastructure environments. Costs depend on factors like:

  • Resource Allocation: More CPU, RAM, or storage increases costs.

  • Bandwidth Usage: High-traffic sites may incur overage fees.

  • Hosting Type: Shared hosting is cheapest, while private cloud or dedicated hosting is pricier.

  • Managed Services: Managed hosting adds to the cost but reduces maintenance effort.

To avoid surprises, review pricing details for setup fees, bandwidth limits, or add-ons like backups or premium support. There is no one-size-fits-all hosting plan, as it all depends on the unique needs of the customer, the applications and workloads, and overall resource demand.

 

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About Author

Paul Painter

Director, Solutions Engineering

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