Managed hosting is expected to be one of the fastest growing and hottest areas of hosting in 2001. For companies looking to outsource their IT-hosting needs or businesses that already have a dedicated web server, this type of hosting is worth consideration.

First off, exactly what defines managed hosting is still being developed. However, it is safe to state that managed hosting is complex hosting solutions including outsourced technical staff and website monitoring.

The big difference between standard dedicated hosting also known as Self Managed Hosting and managed hosting is the involvement by the hosting company to provide the end-customer or business further services relating to the support and productivity of their online efforts. Most managed hosting solutions encompass the entire hardware situation including connectivity, equipment servicing and constant server monitoring. Some managed hosting solutions also encompass software-related tasks for an additional fee. Companies providing managed hosting solutions can offer a variety of hosting-related products including server security products, private networking, and database administration. In other words, managed hosting takes a more holistic view towards server needs and attempts to provide everything (including the staffing) that a company would need to be successful from an Internet infrastructure perspective.

Companies choosing managed dedicated solutions gain several advantages. First, most of the capital costs are conferred onto the service provider enabling a tax-advantageous accounting situation. Second, the company will monitor your server and provide extensive technical support access to ensure maximum server uptime. Third, your gain additional flexibility in terms of supported website functionality and growth options. Fourth, as many managed plans include server administration and extensive technical support, businesses can save on technical support staff (often saving thousands of dollars monthly by replacing an in-house technician by the services provided within a managed solution!) While some of the managed hosting features may seem similar to regular dedicated and shared hosting accounts, managed hosting solutions are really taking those services and products to the next level.