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Web Hosting Basics

A web hosting service generally provides server space for your files or web site, as well as internet connectivity.

Aside from those two basics, web site hosting can include a range of services that can be tailored to your needs and your price range. The services you'll need for your business are a function of how much technical knowledge you have, the amount of traffic you expect and the quality of service you desire.

Small e-commerce startups might require substantial support on a limited budget. As a result, the choice of a web hosting service is important to the success of the business. Some web site hosting services are particularly suited to small business web hosting. Those that have experience with e-commerce business can provide the hand-holding you need to set up and maintain your business, even without broad technical knowledge.

Web Hosting Services: Selection Criteria
If you're not entirely sure how to ascertain your needs, go through this list of criteria for selecting a web site hosting service for your new business:

• The appearance of your site. Consider how important the appearance of your storefront is to the success of your business. Do you want total control of the appearance of your site, or do you want someone with technical expertise to be in charge? The more control you relinquish, the more you'll have to trust your provider to come up with a suitable design, update your site and respond to your changing needs.

• Dependability and backup. Servers go down and sites crash. Your web site hosting service has to provide some guarantee of reliability. If you lose all your files and customer data, your business can fail in an instant. Select a web hosting service that provides backup and rapid recovery. The details should be part of your service contract. Check that your FTP and e-mail accounts are included in the reliability guarantees.

• Bandwidth. Decide whether speed is an important factor. If you expect a high volume of traffic and you have a large inventory of products, you'll need substantial bandwidth to provide the access that your customers expect. When potential customers have to wait for content and images to download, they tend to move on.

• Statistics. Basic web hosting services that provide server space and connectivity may be sufficient when you start your online business. However, as you add products and marketing strategies, you'll want to examine traffic and sales data. Inquire about your web hosting service's software options to be sure that you'll have access to your statistics and the ability to analyze the data when your business takes off.

• Price. In web hosting, as in all areas of commerce, you get what you pay for. While you can easily find free web hosting services, you'll quickly see how little control free web hosting gives you. In reality, your free web hosting service is providing space in exchange for monopolizing part of the space with its own ads. Paid web hosting gives you control and flexibility. The more you pay, the more services you can expect. The cost of web hosting services will be discussed later.

• Reputation. While many web hosting service providers are competing for customers, the range of services they offer is so diverse that it's hard to tell the solid experienced provider from the fly-by-night amateur. Discuss your needs with online business owners who know web hosts by their reputation. Don't be afraid to pay a bit more for a reputable service.

• Management and maintenance. Although the server that stores your site and your files is in a remote location, it's a physical piece of equipment that requires maintenance. Networks and databases are complex systems that have to be updated and managed effectively.

At times, servers will have to be shut down for maintenance. Similarly, your service may be interrupted as new software is installed. Be sure that you understand when and how often your service is likely to be interrupted, particularly if your business and your web hosting service are in different time zones. Good management also includes monitoring of traffic and data flow, prompt reporting of problems and the responsibility for domain name registration.

• Security. You can never be too paranoid about the security of your customers' information, particularly credit card data. A web hosting service must be able to handle the encryption of data, firewalls and other security systems that protect your business. Look for the security certificates that will reassure your customers that their information is safe with you.

• Software. Most online businesses that sell products require special software such as a shopping cart and systems that handle credit card payments. You might also need database management capability. While some online businesses have the technical know-how to manage these aspects themselves, you can save money and time by letting experienced professionals handle the specifics while you concentrate on fulfillment, marketing strategies and personnel issues. Check that the hosting service provides adequate handholding as you set up the systems for your new business.

• Support. You'll certainly need support from your web hosting company to set up your online business. As you research various systems, you may be surprised at how varied support systems can be. Does the web site hosting include a 24/7 phone line with no waiting, or do you get voicemail and a long delay before a call-back?

If your important clients are scattered all over the world and your business operates at all hours, you'll need a provider who can back you up at all hours any day of the week. You can't provide customer support to your own clients if you can't rely on your web host to provide good support for your business.

Types of Web Hosting Services
Basic web hosting can be as simple as providing server space for your web site and your files. In fact, if all you have is a single web site and expect moderate traffic, you can probably obtain the service free of charge from your internet service provider (ISP).

Some web hosting services provide floor space for your own dedicated server. You can have complete control over a rented server, with your choice of operating systems and software programs. Another type of service is called collocation, in which you own the server but it's kept in a remote location with other servers. The web host provides the hardware maintenance.

Shared servers are appropriate for small sites with a low volume of traffic. In this case, you share the server with other clients. Costs are lower but you give up control of such variables as your bandwidth and operating system.

Web Hosting Costs
As demand for web hosting continues to rise dramatically, prices have gone up quickly. Experts blame increased costs on everything from disaster backup requirements to real estate prices. Collocation services, for example, charge a monthly rate of about $40 per square foot, about double the price that it was a year ago.

Nevertheless, most small companies are still better off with a web host than with an in-house server when factoring in the rising cost of power and cooling into the equation. A fixed cost per month per site on a shared server may be a good option for a startup. Costs go up as increased bandwidth and server space are needed. If you have several sites, look for a host that gives you multiple site pricing.

Before you sign up with a web hosting service, check for setup fees and other extra costs. While some web-hosting services offer free domain names, others register your domain names and offer what seems to be free hosting. Clearly, the number of variables is complex. You can easily be lured into a $4.95/month cost for a small site, but end up paying substantially for your domain name and support services.