Any time a business selects a hosting service, the financial requirements are always a primary consideration. Managed hosting provides a variety of opportunities for businesses to save money. The key is leveraging managed hosting effectively. This is especially true when comparing managed hosting to purchasing and maintaining servers in-house. Here is a
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Lease Equipment Instead of Purchasing It
The first way managed hosting can save businesses money is eliminating the large capital investment necessary to purchase and configure servers in-house. By leasing the hardware and software the initial expense is minimal. Additionally, when the server is out of date the business can simply switch to a different managed hosting server rather than purchase a new one.
No Need to Develop the Necessary Infrastructure
Managed hosting also provides significant cost savings because no additional infrastructure needs to be developed or maintained. When purchasing a server for in-house use, the business is forced to develop an in-house data center. This poses a significant upfront investment, even if it is a relatively small server storage space. Additionally, businesses do not need to invest in developing infrastructure redundancies.
No Need to Hire Additional IT Staff
Another way managed hosting can save businesses money is by eliminating the need to hire additional IT staff. Managing servers on a daily basis is time intensive and requires a high level of experience and training. Hiring an expert staff is cost prohibitive for many businesses. By leveraging managed hosting, they gain access to experienced professionals without being forced to hire them as part of the full-time staff.
Don’t Need to Scale Until More Resources Are Needed
A common problem businesses face when they purchase their own servers is expansion. To ensure enough resources are always available, businesses are forced to purchase assets before they are needed. As a result, servers and other networking hardware sits in storage until they are needed. By relying on managed hosting, businesses gain the flexibility to scale their resources on an as needed basis. This minimizes waste and eliminates a variety of upfront costs. Not only does this directly save money, but it also allows businesses to reinvest the upfront cost savings into other profit driving activities.
Access to Purpose-Built Data Centers Provide Greater Reliability and Workplace Efficiency
An overlooked cost cutting benefit of managed hosting is improved infrastructure reliability. Purpose built data centers have multiple layers of redundancy to ensure each server is always online and operating at maximum efficiency. If a server goes down workplace efficiency is crippled. With managed hosting, the servers are stored in sophisticated data centers designed specifically to ensure maximum uptime. It is extremely expensive to create the same environment in-house.
Managed hosting provides multiple ways for a business to cut costs without sacrificing quality or the available resources. It allows them to lease equipment and scale on demand which reduces upfront expenses. It also allows them to maintain a minimal IT staff and internal infrastructure which reduces ongoing costs. It also enhances workplace efficiency by providing elite infrastructure reliability.