The biggest downsides with a shared server are that you’re sharing, so what happens to others can happen to you, says Alex Capehart, vice president of business development for the California-based provider Media Temple, which hosts more than 300,000 domains in 40 countries.

For example, if a company that shares a space on your server is the target of a spammer, your server could become overloaded and shut down, taking your Web site with it. Or your e-mail could be blocked for a time.

Still, if your needs aren’t complex, meaning you aren’t doing interactive things like selling products or streaming video and audio files, shared hosting might be a smart and affordable choice for your business. Just be sure to get good referrals. Ask if they host organizations that send bulk e-mails (spammers) and adult content. If they do, walk away.


Mid-Range to High End

If your business sells on line, you’re going to need some kind of e-commerce capability. Though most Web hosting companies don’t design e-commerce systems, many will walk small businesses through the process of setting up simple, one-click e-commerce solutions available through Zen Cart and many others. Businesses with higher sales volume will want a more full-service e-commerce package, which usually requires the expertise of an experienced programmer. “We work with customers to be sure whatever they’re using is integrated into their Web site and up and running,” Capehart says. Temple uses a grid system powered by hundreds of servers working together in a cluster, that keeps sites from slowing to a crawl (or worse, crashing) due to sudden upsurges in Web traffic.

Businesses with even moderately interactive sites often need more than a shared hosting situation can offer. For those customers, a dedicated server—meaning you are the only user—might be the best choice. Dedicated servers typically offer between one and two terbytes of bandwidth.

There are two types of dedicated servers. If you have a large, highly trained IT staff, you can opt for an unmanaged dedicated server. Your host will provide the hardware for a monthly fee, but it’s your company’s job to do everything else, including loading applications, updating security software, and ensuring the site is running smoothly. For an additional fee, you can get what’s called a managed dedicated server, and your host will take care of everything for you. “Dedicated servers are great for people who don’t have the money to buy the equipment and they want us to buy it,” Sowada says. “If we manage the server, we make sure everything is up and running, and if the computer fails, we replace it.”