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Host Disadvantages

STRATEGIC. Companies are less likely to utilize a hosted service if the solution to be hosted is mission critical or a revenue driver for the company. Companies typically shy away from having their corporate data managed by a 3rd-party provider. That level of comfort is not yet mainstream.

EXPECTATIONS. Many promise the world but never deliver. Make sure the service levels agreed to can be measured, monitored, and reported to validate conformance. If the provider can’t prove what is monitored, then how can they validate your service levels are being met? Read the fine print.

SUPPORT. With larger hosting companies you have a bureaucracy of hoops to jump through to get things done. If you are looking for quick turnaround times to make site changes, you may be in for a big surprise. Ask for references and check out how long it takes to have service requests completed.

RISK. There is a smorgasbord of issues to consider when choosing a hosting provider. If you have never negotiated a hosting contract and a Service Level Agreement (SLA), you better find somebody who has. Otherwise you may agree to a multi-year contract you sorely wish you didn’t.

PRICING. There are many pricing issues to be aware of - per transaction, per user, fixed fee, utility pricing and termination fees. You have usage pricing if you go over your allocated allowance for connectivity, disk space, backup and bandwidth. Know what you’re paying for before signing on the dotted line.