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If you desire to open a storefront online, take note that there are several methods that can be used to power your e-commerce site, including an in-house solution, colocation, shared hosting, dedicated and managed hosting.  The method you choose will depend on various factors, but mainly your budget, level of technical expertise and the requirements of your business.

In-House Method

Hosting your e-commerce site in-house involves setting up a server room, purchasing the necessary hardware and software components, leasing a reliable high-speed connection and employing an IT team.  Experienced IT personnel are required to handle day to day technical aspects such as performing backups, monitoring security and basically doing whatever it takes to keep the server up and running.  The costs and complexities that come along with an in-house operation are considerable and often too much for startups and small businesses to handle.

Colocation

Colocation refers to an alternative solution that allows businesses to store their server hardware and network equipment in a facility maintained by a hosting company.  The firm provides you with physical storage space, internet bandwidth and electricity to power the hardware.  There are many advantages to this type of arrangement, including a lower cost for bandwidth and the enhanced reliability you get from the data center.  The disadvantages are that you must purchase your own hardware and actually find a provider that offers a colocation service in your area.

Shared Hosting

One of the most common ways to run an e-commerce website is through a service arrangement known as shared hosting.  In this environment, the websites of multiple companies are stored on a single server, which share an internet connection and various other resources between them.  While suitable for the needs of many, this type of service is best for companies that anticipate a small to moderate amount of traffic and have a limited budget.  This is mainly because there are strict limitations in regard to disk space, bandwidth and control.  With that said, a reputable firm should be able to provide you with a stable platform that can support the needs of both startups and small companies.

Dedicated and Managed Hosting

Dedicated hosting is a method that calls for you to a lease an entire server from a hosting company.  The provider is responsible for maintaining the hardware and network connectivity while the bulk of server administration falls on your shoulders.  This could be a downside because of all the technical challenges that go into maintaining a server, but there are number of benefits as well.  For example, you have extensive control and flexibility that permits you to run your own operating system, database servers, web applications and services.  For those who lack the experience or time needed to handle these tasks, managed hosting exists, a solution that eases the burden of server administration.  Though notably more expensive, managed hosting will allow you to focus more on promoting your e-commerce site and servicing customers rather than dealing with the all the complexities as these processes are handled by the provider.

The fact that there are so many options for hosting an e-commerce site works to your advantage.  What you need to do is a carefully assess your situation and determine which service is best for your business.  After settling on a reliable solution, the fate of your online business is in your hands.

Cloud computing is one of the most talked about technologies in the web hosting industry.  More businesses are finding that it can be a practical, affordable option for their storage and server needs.  So, how hot is this technology?  Well, Gartner is predicting that by 2012, nearly 80% of Fortune 1000 companies will pay for some type of cloud computing service while 30% will pay to build a cloud computing infrastructure.  If you’re not familiar with the concept, the cloud is far from what you get in the typically hosting arrangement.  The technology offers a multitude of benefits and this article will introduce you to a few of them.

Cost Effective Implementation – With a cloud hosting solution, there is no need to invest in any costly hardware, software or licenses.  Instead of making costly upfront investments, you simply add or subtract from the cloud as your needs change.  In most of these setups, you simply pay for the only the services you use.

Scalability – When IT departments anticipate enormous spikes in user load, they usually have to purchase additional hardware and software components to make it happen.  This isn’t the case with cloud hosting.  The hosting provider’s IT infrastructure typically offers all the resources you need.  Once again, you only pay for what you need and use.

Technical Expertise – When an emerging technology hits the market, it is common for a plethora of companies to jump on the proverbial bandwagon.  Unfortunately, some of them don’t have the expertise to leverage it effectively.  However, many vendors have been able to master cloud computing technology to the point where they can offer customers a highly reliable service.  This is made possible by state of the art data centers, high performance hardware and tremendous computing capacity.  The companies relying on this technology range from industry leading names like Microsoft and IBM to Google and IBM.

Optimized Resource Usage – Clouding hosting services allow businesses to shift the burdens of in-house IT tasks to third-party professionals.  This in turn, gives IT departments the opportunity to concentrate on mission-critical tasks without incurring additional costs on manpower and training.

Higher Availability - Outages and service interruptions can have a serious impact on normal business operations.  With the right cloud hosting solution, you have immediate access to 24/7 customer service and technical support to address emergency situations.  Even though cloud computing is susceptible to outages and other problems, a knowledgeable staff of technicians can dramatically reduce the threat of downtime.

Cloud Considerations

While there are many advantages to cloud computing, this technology does have some drawbacks, mainly security risks.  On the other hand, several providers offering these hosting solutions employ strict privacy policies along with advanced security measures to protect their customers.  This includes various cryptographic schemes to authenticate users and strong encryption algorithms to protect data while its in transit to third-party cloud servers.  This gives cloud hosting providers the ability to provide a much greater level of security than many businesses can achieve in-house.

Source: http://webhostinggeeks.com/blog/2009/04/21/the-crave-behind-cloud-hosting/Cloud computing is one of the most talked about technologies in the web hosting industry.  More businesses are finding that it can be a practical, affordable option for their storage and server needs.  So, how hot is this technology?  Well, Gartner is predicting that by 2012, nearly 80% of Fortune 1000 companies will pay for some type of cloud computing service while 30% will pay to build a cloud computing infrastructure.  If you’re not familiar with the concept, the cloud is far from what you get in the typically hosting arrangement.  The technology offers a multitude of benefits and this article will introduce you to a few of them.

Cost Effective Implementation – With a cloud hosting solution, there is no need to invest in any costly hardware, software or licenses.  Instead of making costly upfront investments, you simply add or subtract from the cloud as your needs change.  In most of these setups, you simply pay for the only the services you use.

Scalability – When IT departments anticipate enormous spikes in user load, they usually have to purchase additional hardware and software components to make it happen.  This isn’t the case with cloud hosting.  The hosting provider’s IT infrastructure typically offers all the resources you need.  Once again, you only pay for what you need and use.

Technical Expertise – When an emerging technology hits the market, it is common for a plethora of companies to jump on the proverbial bandwagon.  Unfortunately, some of them don’t have the expertise to leverage it effectively.  However, many vendors have been able to master cloud computing technology to the point where they can offer customers a highly reliable service.  This is made possible by state of the art data centers, high performance hardware and tremendous computing capacity.  The companies relying on this technology range from industry leading names like Microsoft and IBM to Google and IBM.

Optimized Resource Usage – Clouding hosting services allow businesses to shift the burdens of in-house IT tasks to third-party professionals.  This in turn, gives IT departments the opportunity to concentrate on mission-critical tasks without incurring additional costs on manpower and training.

Higher Availability - Outages and service interruptions can have a serious impact on normal business operations.  With the right cloud hosting solution, you have immediate access to 24/7 customer service and technical support to address emergency situations.  Even though cloud computing is susceptible to outages and other problems, a knowledgeable staff of technicians can dramatically reduce the threat of downtime.

Cloud Considerations

While there are many advantages to cloud computing, this technology does have some drawbacks, mainly security risks.  On the other hand, several providers offering these hosting solutions employ strict privacy policies along with advanced security measures to protect their customers.  This includes various cryptographic schemes to authenticate users and strong encryption algorithms to protect data while its in transit to third-party cloud servers.  This gives cloud hosting providers the ability to provide a much greater level of security than many businesses can achieve in-house.

Source: http://webhostinggeeks.com/blog/2009/04/21/the-crave-behind-cloud-hosting/