The Rent is HOW MUCH???

February 26, 2009

If you were starting a physical brick n’ mortar business, one thing you would have to keep in mind is location, and by proxy, the cost of that location. When you look at retail space, you have to consider the following: foot traffic, local demographic, and obviously, total space available.

But in starting an online business, since the space is virtual, we shouldn’t have to consider these things right? Well, yes and no…

Obviuosly, we don’t care about “demographics” so much as digital space is more or less equal. But we really do have to care about who we’re paying our rent to.

On the surface, hosting (online space rent) is hosting. But in reality it’s not that simple. Now depending on your needs, you can find hosting for anywhere from $0 to millions of dollars monthly, seriously.

So what’s the difference?

Well for one thing, SPACE. You see, bandwidth, or computer space is cheap, but it’s not free.

On average, if you’re dealing with shared hosting you’ll py around $10/month for 5 gigabytes of “space” and 300-500 gigs of bandwidth.

What does that mean?

Well if you host a video on your site, of say, 30-40 megabytes(about average) and it immediately becomes an internet sensation (good thing) and 100,000 people come to your site to see it, your bandwidth will exceed 3,000 gigs and your hosting will literally be shut off (bad thing).

This is where dedicated hosting comes in. If large amounts of traffic are standard in your business, dedicated hosting is where you are leasing access to the entire “server” or computer and get nearly unlimited bandwidth or space. This will run you anywhere from several hundred to a few thousand dollars per onth.

Why such a wide range?

Well there are a few other areas of concern: up-time and service… Up time is just a way of saying “how long do the lights stay on?”. You want service between 95-99% uptime. Any less is unacceptable. Any more is a lie. No one on EARTH hits 100%. That’s why very large companies like search engines use entire rooms of servers that cost millions of dollars a month to maintain.

And last but obviously not least is service. When you do have a problem, and you will; who solves it? Are you gonna have a dedicated IT technician who’s only job is to handle your account, or is your call getting routed to a call center in India?

These are all things that have to be kept in mind when weighing the needs of your business. You’re going to need more info before you can make a meaningful choice. I suggest you find it “here”




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