Resources/Web Design/Managed vs Traditional Hosting

Managed vs Traditional Hosting:
What's Best for Your Business?

By Will Boone

Technical Director, PathSix Solutions

In the digital economy, a company's website is often its primary storefront. Just as a physical business requires a reliable building and utilities to operate, a website requires a server to function.

However, the terminology surrounding web hosting can be opaque to the non-technical business owner. The choice between managed hosting and traditional hosting is not merely a technical decision; it is a financial and operational one.

Understanding the difference can save a business thousands of dollars in lost productivity and countless hours of frustration.

Traditional Hosting: The "Do It Yourself" Model

Traditional hosting (Shared Hosting or Unmanaged VPS) is the raw material of the internet. You are essentially renting a plot of digital land. The hosting provider ensures the server has power and an internet connection, but everything inside is your responsibility.

The Analogy

The Empty Warehouse

Traditional hosting is like renting an empty warehouse. The landlord guarantees the roof won't leak, but if you want to build an office inside, install security cameras, or fix a broken lock, you must do it yourself.

While the sticker price is low, it assumes the customer possesses the expertise of a System Administrator. The user is often given "root access" to a Linux command line and expected to handle everything manually.

The Hidden Costs

Security Risks

In an unmanaged environment, no one is watching the gate. Malicious actors constantly scan for unpatched servers. A single breach can lead to data theft or ransomware.

Downtime & Reliability

When an unmanaged server crashes, it stays down until you fix it. Every minute of downtime is a minute where potential customers cannot reach the business.

Time Allocation

For a business, time is money. If an employee spends ten hours a month troubleshooting the server, the cost of their labor must be added to the hosting bill.

Managed Hosting: The "Service" Model

Managed hosting shifts the technical burden from the customer to the provider. In this model, the hosting company manages the infrastructure, the operating system, and the security of the server.

The Analogy

Checking into a Hotel

You get the space you need, but housekeeping, security, and maintenance are all included. If the air conditioning breaks, you call the front desk, and they fix it.

What Managed Hosting Includes:

  • Automated Backups: Ensuring that if data is lost, it can be restored quickly.
  • Security Updates: Automatically patching software to protect against new threats.
  • Performance Optimization: Configuring architecture to ensure the website loads quickly.

Comparative Analysis

FactorCost
TraditionalCheap upfront (CapEx), but high variable costs in labor and emergencies.
ManagedHigher fixed monthly cost (OpEx), but eliminates expensive technical disasters.
FactorExpertise
TraditionalRequires high technical literacy (SysAdmin skills).
ManagedRequires zero technical expertise from the client.
FactorRisk
TraditionalPlaces all risk on the business owner.
ManagedOffloads the risk to the provider.

Conclusion

For a technology company with a dedicated IT department, traditional hosting offers a level of control that may be desirable. However, for the vast majority of Small to Mid-sized Enterprises (SMEs), the goal is to run a business, not a server farm.

By choosing managed hosting, a business is not just buying server space; they are buying a partnership. They are securing peace of mind, ensuring uptime, and freeing their internal resources to focus on their primary mission.

Switch to Managed Hosting