Savvy 21st century business leaders know that even in tough times, they have to keep their computer systems up and running. That’s why so many of them now opt to operate “in the cloud” of the Internet via server hosting.

Businesses’ migration to the Internet fed the growth of host services. Companies knew they needed to be online, but most didn’t know how to get there. Web hosts offered companies three ways to get online using someone else’s computers: shared functionality, virtual private servers or managed hosting.

The online rental niche has expanded rapidly in recent years to encompass what has become known as “cloud computing”. That is, companies now contract with providers to house vital computer systems on leased machines with rented software and operate them through the Internet.

Small companies and start-ups still enter online commerce using shared hosting, which can be both economical and efficient for new businesses without the financial and human resources to run their own websites. Sharing computers also remains a viable option for many social organizations such as community associations, clubs, schools, churches and the like.

Virtual Private Servers, or VPS, offer a stronger option for some small and medium-sized companies. By leasing a specified portion of a computer, companies gain access to greater amounts of computer resources.

When they reach the point where their business can take up an entire computer, companies move up to a dedicated server, also known as managed hosting. Here the company contracts for the use of an entire computer of its own. With this arrangement, a company typically has the right to say what operating system the leased computer will use such as Windows, Linux or Macintosh. The choice of PC or Mac OS also sets the type of hardware and software the business uses. This in turn can determine whether the business has its own employees administer the leased server via the Internet, or whether the company enters into a separate administration service contract with the hosting provider.

VPS and dedicated computers have similar business advantages. Both reduce a company’s administrative overhead, since a contract relieves the business of buying and maintaining computer hardware and software. It also can reduce labor costs, since the company also can choose to have the leasing organization administer the rented machine.

Software as a Service, or SaaS, is the latest development in online computing. Also called “on-demand software”, SaaS relieves a company of nearly all the operational burdens of administering its own system. With this option, the business’ data and software are hosted on a distant computer, often the same machine that the company leases for online commerce. Employees then use a computer or software known as a “thin client” to access business functions such as accounting, order fulfillment, supply management, customer service and other work.

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

Get more info the advantages of dedicated VPS hosting now in our article on all you need to know about managed VPS hosting

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