Which one is better?

hello experts,

  in our company we are ready to launch a new software products. We were also thinking about selling our products in application service provider model. At his point I have a question. We found a company for hosting our servers for 230 per month. Howewer we can buy a server and do ASP in house. I would like to know advantages and disadvantages of both approach. Comments appriciated. Thanks
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Artysystem administratorCommented:
collocation is better because:
1) Internet links of ISP are wider and link speed is not a concern. Your office links are either have smaller bandwith or worse redundancy.
2) You don't need your own local 24hour tech support personel. At lease most hosting companies provide their own in case of you need 'hard reset server'
3) Most companies also may provide you backup services for your data (not shure if it's in your case)
4) Power redundency usually provided by ISP, so you hardly loose your not synced data.
5) Climat conditions (air, temperature, humidity, no dust) are also better in special server rooms

Security, accessability and managability are almost the same in both cases (if you are using remote console or encrypted tunnel to your host).

what is worse in collocation:
1) tech support may not be such 'quick' as your local administrators in case of problems
2) 'restore' will take more time in case of disaster recovery
3) security may be a concern, if you are using plain text transfers for some private data (not via SSL)

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$230/mo seems kind of cheap.  Make sure you go over your contract with a fine toothed comb.  Make sure you have good Service Level Gurantees (SLA's) and they're ironclad.  Get recommendations.  What is their infrastructure like?  Have you visited their facilities?

Advantages to hosting:  You have less staff, you have less infrastructure costs, you have less technical knowledge, hopefully you have a good SLA, they have staff, knowledge, infrastructure.

Disadvantages to hosting:  You can't make changes as quickly as you might like, you're bound by the terms of the contract, monthly cost, possibly poor service.
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