Managed hosting contains similarities to the dedicated hosting, but has increased advantages over other. Managed hosting provides control of the server to the host. Managed hosting provides benefits such as monitoring, administration of the system, updates in software, reporting, and security setup. It is not essential for the end user or the customer to be an expert in managed hosting or have a department exclusively dedicated to IT, in order to deal and cope with the devoted servers. In case, the user embarks on the option of managed hosting, the user not only saves on the expenditure, but also distributes the cost in a more regular way, thereby attaining a faster return on the individual investment. In case of co-location, the buyer gets to purchase a space for rack from some specific provider of web hosting with the basic infrastructure and a network. One advantage of co-location over managed web hosting is that, the users get to operate and manage it from their own household premises.

Cons of Co-location Hosting:

Although, it is observed that co-location seems to be light on the pocket of the user or the customer, many hidden costs are involved therein which need to be taken care of. As much as three disadvantages of co-location hosting are observed. They include the initial cost of the equipment. These have a negative impact on the ROI of the user. In addition, the cost of the hardware also needs to be taken care of. The technology for the component of the server is fast developing. It becomes a costly hassle for the user to keep with the changes. The third and the most important thing to be taken into consideration is that, the owner needs to have a sufficient hardware for backup purposes as well as the support of qualified and efficient technicians, who are adept at handling the data related problems.

Expenditures:

The cost of all the hardware reserves for all the components of the server plus the capital expenditures adds up to a lump sum amount. In addition, the cost of the hardware technicians contributes a considerable amount with regards to the expenditures. The main dissimilarity between the two forms of hosting is, to what lengths these web hosting providers would go for the management of the administrative tasks of the user. The disadvantage of co-location hosting over web hosting is that, the former does not provide much services. On the contrary, managed web hosting provides additional essential services which include the VPN’s and firewalls.