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Nowadays there is a lot of buzz about having your application hosted on a Web-based platform. There are pros and cons, and the proper question is, “Which platform is right for your company?”

Let’s first define what is meant by “hosted” vs. “local server”.  A server is a main computer that holds your data.  With a hosted server, a 3^rd party tech company has physical possession of the server, but provides remote access to your company.  You can access your data by connecting over the internet with their server.  This tech company will maintain the server and take care of everything required to keep it up and going. Usually this is done on a subscription basis or monthly fee. There are two common ways of hosting – web based and terminal services.

With a local server, the owner is responsible to keep the server and the local network up and going.  An on-site computer is set up as the server, and all other computers in the network are linked to it.  A 3^rd party tech company is usually hired to come to the local business to set up the server and the network, install the software, and help maintain these services.

Let’s briefly outline each of these options.  

Web Based 

            Web or browser based solutions give the user access to their information via a web browser such as Internet Explorer. The user’s software and data is normally stored on the hosted server.  Multiple companies normally share the hardware and sometimes even the database in these type of configurations, thus reducing the overall cost of maintaining the hosted server. 

The downside of a browser based solution is that owners may run into difficulties should they ever want to bring the data or application back into their own location and switch to a local server instead. Two issues to consider are: 1) if you are sharing a database with other businesses, splitting the data could be a real problem. 2) if the software is browser based, that means that the software must be hosted on a web-server, which is not easy to setup or maintain.  Sometimes the internet can be unreliable, and sites “go down” occasionally.  This would affect being able to access your database.

Terminal Services 

            Terminal Services based solutions are similar to web based in that a 3^rd party hosts your hardware and your software, but typically the software is a common application like Microsoft Word or Excel and doesn’t run in a browser window.  Secondly, the database is typically not shared, which means that you can bring the hardware and software back to your own location. Terminal Services will typically give you more flexibility in switching back and forth between hosted and non-hosted solutions.

 
A couple of additional things that you should be aware of when considering a hosted solution (either web based or terminal server based):

1.     Hosted solutions are always going to be more expensive over the long run.

2.     Hosted solutions are less hassle for the business owner and generally more reliable. (Most of the time, these tech companies know what they are doing.)

3.     Hosted solutions are especially valuable when working remotely or when multiple locations are involved.

4.     Be sure that the company doing your hosting can’t hold your data hostage. Sometimes a company will shut down your service if you don’t pay your subscription, and if you are using a web based solution, it is possible to lose all of your data. Just make sure that should you need to, you can get your data back and use it in a local environment.  Be particularly careful and well-informed as you enter into a browser based solution.

5.     When the internet goes down, you’re down! Make sure that your internet provider and the hosting company have reliable internet connections.

Local Server 

            If you choose to implement a local server solution, it is going to be less expensive over time but more hassle. The business owner is responsible if the computers go down or get a virus. (Most of these issues are transferred over to a 3^rd party company in a hosted solution.) Keep in mind that it is possible to have remote access (hooking in from multiple locations, laptops, etc.) with local servers but again there is a considerable initial investment in time and money to get it up and going.