A webmaster on the lookout for web hosts usually focuses on the basic aspects of hosting types and packages. This means looking at the server options (dedicated, VPS, shared) and the type (managed or unmanaged, collocated, etc.), not to mention the OS (Unix/Linux or Windows). Another major focus area is the bandwidth and the server specs, which in the case of shared server means disk space, scripts and tools and so on.
These basic choices aside, there's a lot that many webmasters learn the hard way. One of these issues is that hosting requirements for a site change, as the company/website grows and traffic increases. The point here being that it is better to keep a little flexibility and plan ahead for upgrades, changing packages, moving to a new server or even a new web host.
Most web hosts do offer tech support to ensure that the upgrade goes off smoothly with minimal site downtime. But that doesn't soften the blow for a website owner, who suddenly has to deal with server administration and the costs of using a whole server. There are ways that this impact can be softened.
One way is to put the upgrade process on a graded curve. Someone using a shared package hardly needs a dedicated server overnight. So as the traffic starts growing, move to a virtual server first. VPS offers all the same control and freedom that a dedicated server offers, but without the cost or exclusive use of a full server. The site can be upgraded to make best use of the newly available tools and resources, and the webmaster gets used to working with a server.
Note that this is meant to be a solution for the interim. This is the time period where the site has outgrown the shared package, but it's not feasible to upgrade to a dedicated server. All growing websites go through these stages, and when it becomes possible to get a dedicated server, the shift from VPS to dedicated is a much easier one.
Other than upgrades, another major sticking point with choosing a web host is the restrictive privacy policies and regulations. Many of these concerns can be mitigated by looking for a suitable offshore hosting company. Opting for this helps webmasters operate free from interference and it also boost profit margins, since the tax liabilities are nil or thereabouts.
Hiring labor also becomes much less costly, and the net impact is that a company gets to keep all the earnings instead of handing it out to various interested parties. But this is a very individualistic decision with a lot of factors to be taken into consideration, including the product, targeted market and potential for saving on costs and improving profit margins. But it is a viable option, and one that is increasingly being adapted by many companies.
As a matter of fact, after moving to an offshore host, many companies even diversify into the hosting services business. That's not surprising, because reselling it is a piece of cake given the huge potential for savings and freedom to operate a website as required. The sum of all this is that while there's a learning curve for being able to keep up with hosting changes, it can be an advantage if planned for and done right.
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