When should a company consider getting private servers for webapps as opposed to hosted solution? What are the criteria?
UPDATE 2: I prefer hosted solution. At what point should I move away from it and have my own set up? (Affordability is not an issue)
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M$2 Answers
The only variable cost that folks forget to add in is support. With a shared server, your host takes care of pretty well everything. If there's a problem, you write a trouble ticket and wait for it to be solved. In a dedicated scenario, you're usually left to fend for yourself unless it's a problem that either affects other customers or is beyond your control. A lot of companies will say "we offer full support to dedicated customers", but think about that for a second... if you set everything up, do you really want some hack in there messing around with your junk? Nah, you'll likely take the time to fix it yourself or pay an admin you trust to do it for you.
Right now (before you switch), keep a close eye on your processing and storage space. These are what really cost money in shared hosting scenarios and will give you a good idea of what you need. Storage space is easy to see - just check how close you are to your limit. Processing is a bit more erroneous but the best way to check is by creating a small PHP script that will write out mySQL execution times and match processing levels with traffic.
Bandwidth consumption is also important on a shared server because it is usually shared among all of the shared server clients. If you're being billed per GB, figure out how much it would cost you to be billed on the 95th percentile. If the 95th is less, switch to dedicated.
Don't forget that there is a middle step. Virtual Dedicated Servers offered by larger shared hosting companies work well in some scenarios. By using virtualization, each account on a single physical server is allocated a set amount of RAM, Processing, Storage and Bandwidth. You're (usually) given root access. The beauty part of this scenario is that its very easy to scale. So if you're hosting (for example) an image shack clone that needs a ton of storage but not a ton of processing, virtualization would work well.
I know a thing or 2 about hosting.
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M$
what is the cost to have a server service
what is the cost of having on on site
can the company handle tech support
is the company going to be able to make the system as secure or more thena provider.
can the company handle having the server up at all times it is need; black outs, high traffic, temp control and so forth.
also do you have a locatoin to place the server/
hope that gives some help.
~Joey V.~
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M$
Thanks for the input. I was actually looking beyond the cost issue (just added additional details). If cost of setup + maintenance + staff was not an issue, what are the risks in going with hosted solution? For example, are there any Intellectual Property-related concerns? Or similar things to know.
If cost isn't a factor... then support is your only concern.
There are a few different levels of dedicated servers:
1) You rent a server from a hosting company
2) You buy a server from a hosting company outright
3) You ship your own server into a datacenter (DC) to be racked and installed
4) You purchase a RU (rack unit) and DC access. You rack your own server and connect it up to the community switch
5) You form a peering agreement with a bandwidth provider and buy a cage or rent space in a cage.
The support costs of each increments with each step.
The property related concerns are mainly prevalent with option 1 (renting) however the advantage to renting is that the hardware is officially supported by local admins and you can ask for a free upgrade in time. Having supported hardware means that if a drive fails or you need more ram, the local admins will likely have compatible equipment in a local closet and can install it without much of a delay.
If you're not renting, you're usually responsible for having spares on hand and installing hardware yourself when required.
So if money isn't a concern then support is your only issue. In a dedicated setup, you need someone to maintain the software, security and operating system and someone local to manage the hardware both of the server and the network infrastructure. In most scenarios, the hosting company will take care of the network infrastructure as part of your monthly fee.
Didn't think about Virtual servers. That seems like a good idea. If cost of setup + maintenance + staff was not an issue, what are the risks in going with hosted solution? For example, are there any Intellectual Property-related concerns? Or similar things to know. So, let's put it this way. I prefer hosted solution. At what point should I move away from a hosted solution.