In this new article, we look at how data hosting and cloud computing has seen a major boom and acceleration in use during the last few years. Also, we consider some of the key considerations for a startup choosing which data hosting provider to sign up with. Let’s dig in!

Global Cloud Spending To Reach Record High in 2023

In 2022 the prediction was an 18.8% increase, but growth in cloud computing worldwide in 2023 is set to be even higher according to Gartner,

“Worldwide end-user spending on public cloud services is forecast to grow 20.7% to total $591.8 billion in 2023, up from $490.3 billion in 2022, according to the latest forecast from Gartner, Inc.”

Source: Gartner.com, Oct 31, 2022

Cloud computing is set to continually rise as remote and hybrid working are both part of the new status quo.

The New Era of Startups

A new generation of startup entrepreneurs was born during the pandemic and after. For some it was a way to make ends meet as globally companies had to reduce their staff to cope with financial losses with the high street closed for long periods and people locked down. However, for others it was about finding their own freedom of lifestyle as their own boss and taking the leap to make their passion into a business. As a result, millions of people across the world started their own businesses. 

Why Startups Prefer To Rent Cloud Computing

More and more startups are choosing to use data hosting services simply because of the savings they can enjoy. Rather than owning their own computing infrastructure, startups can rent data storage, applications and a host of other things. In essence they pay for what they use and when they need it, a kind of ‘pay-as-you-go’ for cloud computing. This helps a startup to reduce their operating costs and they can then scale the business at their own pace without heavy investment in their own IT infrastructure.

Peace of Mind With External Data Hosting

The business owner then has the peace of mind knowing that the cloud services provider will maintain the network hardware and advise about all technical matters. This saves a company having to hire their own in-house team as everything is hosted offsite. Data hosting services for startups are a very flexible and low cost IT resources for new businesses. 

Factors When Choosing Data Hosting For A Startup

For certain startups, data hosting can be integral to their business operations especially for companies that work in the technology industry such as gaming, financial services and other such technology based sectors. Selecting the right data hosting provider is vital to maintaining reliability of performance for their clients while keeping IT resource costs low. Here are very 3 basic steps to take when deciding on your data hosting provider:

Step 1: What are your unique needs as a startup?

First, research your options and find solutions that meet your specific needs as a business. You’ll certainly need to consider factors like scalability, security, reliability and affordability in order to get the most out of your data host selection. How soon is your business likely to scale? How secure are the services of the various providers? What proof and stats do they have regarding the reliability of their servers? How affordable are the prices on offer?

Step Two: Testimonies and reviews

Next, you should look for a provider offering web and application hosting services with good uptime records. Get a short list of your top five favourites and make a list of their pros and cons over the factors in step 1: i.e. scalability, security, reliability and affordability etc.

Before signing on with any data hosting company, do an in depth read of customer reviews and ask for references from other businesses that have used their services. This will help to verify the quality of their service from existing customers. If your technical knowledge is limited, reach out to someone in your network who may be able to give you impartial advice. 

Step Three: Deep analysis of the service agreement

Finally, look carefully at the terms of service agreement before you sign up. Pay attention to restrictions on IP addresses and transfer limits as well as fees associated with overages or additional server space needed in the future. These can affect your bottom line and should be discussed openly before you sign up to any contract. 



Shared Hosting 

Shared hosting is used by many companies and individuals to host web services and it is currently the cheapest type of web hosting on the market. 

Shared Hosting Positives

It is therefore appealing to startups because it has low overhead costs. Sharing a server means that startups with small websites can start to build their brand image and presence in cyberspace quite easily without being very technologically savvy. 

Sharing Hosting Negatives

With shared hosting, although it can be cheap, all the hardware is shared between users. This can have an adverse effect on the performance of everyone’s hosted services, which can have reputational damage for a startup trying to onboard and keep customers. Equally, with shared hosting your administrative rights are limited and you may not be able to change software configurations. Securitywise shared hosting is not particularly secure because any user on the same server could potentially breach the security of your website or software applications if they are hacked. 

Last Thoughts on Data Hosting For Startups

With these aforementioned tips, we are confident you will find the perfect data hosting solution for your startup. Startups should carefully consider all the options available for hosting before taking the plunge. Startups should consider all of their options when selecting a reliable hosting service for hosting their website.

You should see data hosting as an investment in the growth and longterm success of your business. Cloud hosting have a plethora of benefits for startups which will make your business stronger and more competitive. Think about and research the four factors we mentioned before you sign any agreement: 

• Scalability
• Security
• Reliability
• Affordability

If you need any information about IP House’s Data Hosting for businesses, read more on our website or get in touch with one of our friendly team. Just fill out the form below.