Businesses that need to economize in these tough times may be putting off buying new computers and software, but there\’s an easier way to fulfill this essential business need: server hosting.

Most companies think of this option in terms of their websites. It\’s true that such services started out as major on-ramps to the Internet superhighway. Over the past decade leasing online service came in three versions: shared hosting, virtual private server or dedicated server, all of which function Internet gateways.

However, today more companies are finding that internal as well as external business functions can be filled via hosted networks. As a result, a fourth category has emerged, that of Software as a Service, or SaaS.

Shared arrangements for online websites and limited e-commerce work well initially for small and start-up companies, along with churches, community organizations and other non-profit groups. The cost for leasing such a service is low and the provider bears the overhead costs of hardware and software management and maintenance. However, it isn\’t long before a business outgrows a shared contract.

Companies look for more robust solutions when their online business reaches a point that it risks being tagged as a \”resource\” hog in a shared arrangement. That\’s when many small and medium-sized businesses move up to a Virtual Private Server (VPS), sometimes also known as a virtual dedicated host. At this level, a business contracts to use a larger part of a computer\’s resources.

Vigorously growing companies soon reach a point where their online business can consume an entire computer\’s functions. This type of Internet service is known as managed hosting or dedicated server. In this arrangement, a business leases an entire computer and gains full management control of the operating system, the type of hardware, and a range of software. The lessor can administer the leased computer (usually as an add-on service) or the lessee may have employees manage the dedicated computer.

The advantages to both VPS and dedicated server include less overhead, since the lessee doesn\’t own the equipment. Use of VPS and dedicated servers also gives companies a larger return on their investment since they aren\’t burdened with capital investment and depreciation. Business performance also improves, since computers leased in this way typically are housed in data centers outfitted with redundant climate control and power sources to assure continued operation.

The latest innovation in Internet business computing is called \”on-demand software\”, known more formally as Software as a Service or SaaS. In this scenario, all of a company\’s software and its accompanying data are housed in a central location. Then vital business functions are accessed by the company\’s employees using what\’s known as a \”thin client\”, a separate computer or program that performs some of the computational functions of a computer via Internet connections. Business applications typically delivered via SaaS include accounting, customer relationship management (CRM), content management, enterprise resource management (ERP) and service desk functions.

Server hosting has become one of the few business growth areas throughout the global recession of the past three years.

Author Bio: Committed to bringing the consumer the very best in Managed VPS, with 100% Canadian Data centers you\’ll receive premium performance on your VPS hosting.

Category: Computers and Technology
Keywords: vps hosting, managed vps, virtual dedicated hosting, dedicated servers, linux server, small business