What makes in hosting or colocation viable?

Written by Rack Alley

It seems like moving servers to the cloud and shutting down internal server rooms seem to be where most companies are heading. However, some people believe that renting server hosting may actually not be a good idea in some scenarios. It usually depends on the structure or goals of the company. Here are some examples of why server hosting is viable:

Saas and larger tech companies whose websites bring in lots of profits will want to keep their servers in house. Smaller companies may not do this because, in house, hosting is usually only done by larger companies that can rely on the revenue from their websites. When renting a server there is always a chance that on their end their server could fail, causing damage to your company.

Hosting and Iaas companies that will usually gain customers based on the fact that web hosting is more reliable than in-house hosting. Especially since they develop the infrastructure that is too expensive for smaller companies to own. Some or most of that advantage is in the advanced software and hardware which makes renting a server a more attractive and easier option.

However, some companies require very specific hardware resources for their server, so because of this, they will need to remain in-house. Most providers will provide hardware that is specific to their own reliability and testing and that may or may not overlap with these hardware requirements.

Running your own server might have its downsides and upsides. In-house hosting is definitely a good option for larger companies with specific requirements in mind for a server.


Rack Alley provides premium LA Colocation services perfect for small and enterprise customers at their Los Angeles data center.