The Internet has exploded in the past several years as a medium for organizations and small businesses to find audiences for their services and products. Searching the Internet is as likely a way for your audience to find you as any other means – IF you have an online presence.

There are two fundamental aspects to establishing a presence online: a domain name and web site hosting. The first is simple but beyond the scope here. For the second, your domain name must point at a host -- a network of services and files that make a web site available on the Internet.

While there are many variations, here are the most common options:

Shared Hosting

A hosting provider puts your site on a server with a large number of other sites. It's inexpensive, but the server may not be managed ideally for such a variety of clients, and it’s typically somewhat restrictive.

This option is usually the appropriate solution for the majority of small businesses and organizations. 

Virtual Private Servers

Like shared hosting, you do share a server, but with only 2-3 other companies. This option provides more resources and flexibility and is less expensive than a dedicated server, but it is more expensive than - and doesn't typically provide the flexibility of - a dedicated server.

This option is not as widely available.

Managed Dedicated Servers

The entire server is dedicated to a single client. There is no competition for server resources, it’s completely flexible to your needs, and you don’t need to know anything about managing servers. What's more, the hosting provider typically leases all of the hardware and software (saving you money up front). The down side is that it's more expensive than managing your own server.

This is a good option for the large “small business” or small corporation that needs dedicated resources but doesn't want to manage servers themselves. It's also a good option for the development house that wants to start hosting clients in an environment they have considerable control over and can keep their clients safely - for example, a developer could use a managed dedi server as a shared server for their own clients.

Unmanaged Dedicated Servers

The hosting provider typically supplies only the hardware, network infrastructure, and core fundamentals such as security, power, bandwidth and IP addresses. The benefit is that you have total control over the server; can have it set up however you like; can install and run any software components you like; and it's less expensive monthly than a managed server. The downside is that it is more expensive upfront and it puts the management responsibility on your shoulders (though support is typically available for a fee).

This is a good option for a company that needs the full use of a server’s resources and has the talent to manage them, though not the capacity to manage the hardware and network. It's also a good option for the development house that has enough experience managing servers, as they can affordably offer all of the above options to their clients.  

Co-location/Rack Space

This is the highest rung of the ladder, short of building one's own data center. The data center provides only the core fundamentals: security to the building, power and bandwidth, and very minor support. The client is responsible for everything else -- all of the hardware for the entire network including DNS, mail, database, and site servers, backup systems, firewalls, etc.; all of the software; the installation and configuration of the entire network; and the support for and maintenance of the network. The benefit is that it offers complete control over the network, and that the monthly expenses are minor. The downside is that it's very expensive on the front end; and that one needs to have the expertise to configure and maintain the entire network.

This is a good option for the smaller hosting company or large development house that has the monetary & human capital to do it, and that wants total control over their network for the benefit of their clients.

There are nuances to these typical types of hosting options, and a wide variety of solutions available. Having some knowledge of the typical tiers should help you negotiate the best solution for your organization or business.

What’s more, while there are an overwhelming number of providers for these services, it is often the case that the more specific your requirements are, the better you would be to find a smaller, competent provider for those services -- as you will almost always find the level of personal attention you will want and will ultimately need.

If you would like to learn more about local technology and other local tech businesses, visit the Redwood Technology Consortium web site at www.redwoodtech.org.

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Sean Connors is the owner of and Chief Project Manager for Web Merchant Services. Sean is a business member of the Redwood Technology Consortium. A fuller version of this article is provided on the WMS blog: blog.WMSmerchantservices.com.

Copyright 2009, Eureka Times Standard Newspaper. The print version of this article first appeared in the 1/22/09 edition of the Times Standard.