Expert's Voice Archives - webhosting.today https://webhosting.today/category/experts-voice/ Your news portal about web hosting Tue, 15 Apr 2025 09:39:25 +0000 en-US hourly 1 Shared Hosting Tips in Bahrain https://webhosting.today/2025/04/15/shared-hosting-tips-in-bahrain/ https://webhosting.today/2025/04/15/shared-hosting-tips-in-bahrain/#respond Tue, 15 Apr 2025 09:38:16 +0000 https://webhosting.today/?p=2585 In a recent discussion, Filip Borcov from Site.pro engaged with Sami Mohamed Ali, the Quality of Service Expert at Bahrain’s .BH Registry, to explore the dynamics of Bahrain’s shared hosting and domain market. They delved into topics such as the structure of the .bh and .البحرين domains, the country’s impressive internet penetration rate, and the […]

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In a recent discussion, Filip Borcov from Site.pro engaged with Sami Mohamed Ali, the Quality of Service Expert at Bahrain’s .BH Registry, to explore the dynamics of Bahrain’s shared hosting and domain market. They delved into topics such as the structure of the .bh and .البحرين domains, the country’s impressive internet penetration rate, and the recent public availability of .bh domains. The conversation also highlighted the popularity of .com domains due to their affordability and global appeal, as well as the regulatory environment governing local hosting companies. This article provides insights from their exchange, offering valuable perspectives for businesses and individuals interested in Bahrain’s evolving digital landscape.

Domain Categories: differences between .com.bh, .net.bh, and .org.bh

.bh is the second-level domain representing Bahrain. It is the easiest way for any entity within Bahrain to be represented online. .com.bh is specific to companies,.net.bh is for network-related companies, and .org.bh is for organisations. Each category is designated for specific audiences.

Internet Penetration and 5G coverage

There are approximately 1.5 million people in Bahrain with almost 200% internet penetration, meaning the average person has around two lines. Bahrain was among the first in the region to launch full 5G coverage, which ensures excellent response in terms of Internet and services they provide.

Payment Gateways

The local people ussually prefer using local payment gateways. For majority of the public there’s a government based initiative called BenefitPay, which connects all the banks, as a result, all the debit card transactions go through BenefitPay platform. In addition, there are multiple international, as well as local, options for credit cards. There are two famous local gateways, CrediMax and Tap Payments, which are also international players.

Local vs Global Domains

There are around 6k local domain in Bahrain. Talking about popularity of local domains comparing to global ones, .com remains popular due to its global recognition and ease of access. Since .bh opened up last year, there has been about a 10% growth in its adoption. However, price and global reach often make .com a preferred choice.

Local vs. Global Providers

Local people have a mix of preferences when it comes to working with local regist and hosting companies. With recent changes, there’s been a noticeable move towards international register companies. However, a significant number of people still favor local businesses due to the support they offer. One of the huge challenges for the local buisnesses is the growth of .bh, so the .BH Registry want to establish .bh as the Goto domain. That is why they are promoting a lot of local registers and trying to give them the opporunity to excel in this market.

Pricing and Market Dynamics

The average price for domain registration for .bh is around 60$, it is a fix amount the .BH Registry has to charge for a domain because of government resouce.
Social media platforms like Instagram, Facebook, and WhatsApp are the main business drivers. People use these three social media platforms to provide services. .BH Registry is educating the community on the benefits of having a website for legitimacy, but adoption will take time for a while because of integration for a while.

Quality vs Price

The choise of hosting company is mainly price driven decision, because the market is new and the product has not been on the market that long. But it’s worth noting that as the product stays on the market longer and longer, the users will envolve into quality.

Growth of .bh ccTLD sales

.BH Registry launched its domain name in 2022, initiating the expansion of local domain adoption. The six-month launch process set the stage for growing the presence of .bh domain names in Bahrain. Now, the registry is focused on increasing domain registrations and strengthening the .bh domain’s position in the market. This year, efforts are geared toward ramping up domain sales and encouraging more businesses and individuals to choose local domain names.

Website Builders in Bahrain

There aren’t many influence on that matter, on the other, it’s more impact of a regist driven concept. As a result, the regists are the ones who push website builders and the similar products to provide better end-user services. .BH Registry support initiatives promoting website builders, but they haven’t direct influence on that.

Regulations for local hosting companies

The main aim is to ensure that the local hosting companies are following the regulations of Kingdom’s law. The main obligations that all registers, entities and resellers must fulfil are to comply with the country’s regulations. There are no strict criterias, for example selling in local currency. An important point to emphasise, no misuse of any of the domains for cultural implications, as well as, be very careful to not impact the social norms of the country. Flexibility is allowed as long as the law is followed.

Promoting Local Domains

Local services providers often protect from global regulations or shutdowns. During Coronavirus time it was a lot of online interaction fixed in Bahrain. To consider, Coronavirus time motivated people to start building online presence, as well as, it was a lot of business which benefited from that.
Due to political issue, it could be a ramp up of local services providers. From a policy perspective, the .BH Registry has made it clear that .bh represents Bahrain, and it’s a good place to showcase your product, confirming that it’s a Bahraini product.

The .BH Registry are working very heavily in promoting the Arabic domains in Bahrain. Once it comes out, it will help everyone who speaks Arabic and can take advantage of the language itself by using this domain. To consider, it might be a very useful option in promoting domain.

Lessons Learned

Lifehack #1: Educate the youth, as they are the next business leaders.
The best way is to educate the young people, the .BH Registry is going into workforce, working very closely with universities and organise hackathons.

Lifehack #2: Work close with universities and teach IT, coding, website creation.
.BH Registry collaborate with universities adding to their curriculum development of websites, development of internationalised domain names and email servers. The main aim to build a digital environment and working with the vision of the country’s leaders on creating sustainable digital environment.

Conclusion

Bahrain is making significant strides in promoting local domains and advancing its digital transformation. While the adoption of .bh is growing, globally recognized domains still dominate the market. To accelerate this shift, ongoing education, awareness, and the development of a supportive ecosystem are crucial. By fostering a strong digital infrastructure and encouraging local domain adoption, Bahrain can further strengthen its online presence and drive long-term success in the digital space.

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Building a winning sales team for the web hosting and cloud industry https://webhosting.today/2025/03/28/building-a-winning-sales-team-for-the-web-hosting-and-cloud-industry/ Fri, 28 Mar 2025 13:27:31 +0000 https://webhosting.today/?p=1835 In my experience, big wins don’t come from stretching your team too thin. They come from focused, strategic efforts that address real problems for your prospects and build lasting partnerships. This is especially true if you’re not competing at the bottom of the market for the last pennies but instead operate a brand that provides […]

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In my experience, big wins don’t come from stretching your team too thin. They come from focused, strategic efforts that address real problems for your prospects and build lasting partnerships. This is especially true if you’re not competing at the bottom of the market for the last pennies but instead operate a brand that provides genuine value to your clients.

If you’re serious about building a world-class sales team in the web hosting and cloud industry, you need to throw out the old playbook. Forget about hiring people who try to appeal to everyone or push as many leads through the pipeline as possible. That approach might bring quick wins, but it will never deliver the kind of consistent, game-changing results that define real success in this space.

Instead, the most effective strategy is to focus on depth, precision, and teamwork.

Mastering accounts is the foundation of success

The best salespeople aren’t just good at talking to clients—they’re masters at understanding them. They know more about their accounts than the employees who work there. And this isn’t just a nice-to-have skill; it’s essential in an industry where technical expertise and tailored solutions drive buying decisions.

If your team isn’t deeply familiar with their target accounts, they’re going to struggle. A top performer knows exactly:

  • How their target accounts make money.
    Are they subscription-based?
    Are they chasing enterprise contracts or SMB volume?
  • How their target accounts make money.
    Are they subscription-based?
    Are they selling to SMBs or enterprises?
  • How they acquire customers.
    What’s their strategy?
    Paid ads?
    Partnerships?
    Are they dependent on organic growth?
  • Who their ideal customers are.
    What industries and company profiles do they target?
    What problems are they solving?
  • What their risks and priorities are.
    Are they dealing with outdated infrastructure?
    Growing competition?
    Leadership shifts?
  • What their leaders are saying publicly.
    Have your reps listened to the CEO on a podcast?
    Seen what executives are posting on LinkedIn?
  • What industry chatter says about them.
    Are analysts or experts flagging them as a rising star—or a company with vulnerabilities?

Your sales team needs to have this level of understanding because it’s the only way to have meaningful conversations with prospects. When a rep can walk into a meeting and surprise a decision-maker with how much they know, it builds instant trust.

I’m self-taught, but I’ve developed this methodology over the past few years and have occasionally received responses like:

“How do you know this topic? Were you in our leadership meeting?”

That level of respect isn’t earned through surface-level research. It’s built through dedication, curiosity, and an ability to connect the dots.

The truth is, you can’t spread this effort across 100 accounts. If you’re building a high-performing sales team, they need to focus on fewer accounts with bigger potential. Sales leaders need to empower their teams to prioritize depth over breadth and invest their time in high-impact opportunities.

The quarterback mentality: because selling is a team effort

The web hosting and cloud space is too complex for a lone wolf approach. Success here isn’t about a salesperson closing deals on their own. It’s about knowing how to bring the right resources into the process and orchestrating a win.

Your sales team needs to think like quarterbacks, not just sales reps. The best ones are incredible at internal selling. They know how to make the case for why a deal matters—not just to their own quota, but to the entire company.

When they spot a big opportunity, they don’t hesitate to get the right people involved:

  • C-Suite Leaders: To bring strategic alignment and build trust with client executives.
  • Pre-Sales Engineers: To navigate complex technical conversations and address objections.
  • Customer Success Teams: To show the long-term value and support prospects can expect.

A strong sales team knows how to leverage every department in your organization. But for that to happen, they need to be great storytellers internally. They have to sell the vision to their own colleagues, whether that’s explaining the strategic importance of landing a key account in a new vertical or how a new client could become a flagship case study.

When your team gets this right, the result is more than just closed deals. It’s an organization that operates like a single unit, where everyone feels invested in winning together.

Why this approach works in our industry

Whether you are into web hosting, XaaS or Cloud sales, relationships matter more than anything. Companies are trusting you with critical parts of their infrastructure, and they’re not going to make that decision lightly. They’re looking for partners, not just vendors.

If you want to build a sales team that thrives in this space, they need to:

  1. Go Deep – Empower them to do the homework and know their accounts better than anyone else.
  2. Focus on the Right Accounts – Teach them to prioritize fewer opportunities with massive upside.
  3. Work as a Team – Train them to quarterback deals by bringing in the right people at the right time.

In my experience, big wins don’t come from stretching your team too thin. They come from focused, strategic efforts that address real problems for your prospects and build lasting partnerships.

If you’re building a sales team for the web hosting and cloud industry, this is the approach that works. Every great sales organization knows it’s not about chasing volume—it’s about chasing value.

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Shared hosting tips in Indonesia https://webhosting.today/2025/03/25/shared-hosting-tips-in-indonesia/ Tue, 25 Mar 2025 11:26:36 +0000 https://webhosting.today/?p=1911 Indonesia is one of the fastest-growing digital markets in the world, driven by a large population, increasing internet penetration, and a dynamic business environment. With a rapidly evolving digital landscape, businesses must navigate language preferences, diverse payment systems, customer service expectations, and regulatory changes to succeed. This article explores key aspects of the Indonesian market, […]

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Indonesia is one of the fastest-growing digital markets in the world, driven by a large population, increasing internet penetration, and a dynamic business environment. With a rapidly evolving digital landscape, businesses must navigate language preferences, diverse payment systems, customer service expectations, and regulatory changes to succeed. This article explores key aspects of the Indonesian market, including payment methods, domain trends, customer preferences, and government regulations, providing insights and strategies for businesses looking to establish a strong presence in the country.

Additionally, this article features insights from Yusuf Nurrachman, CEO of RumahWeb.com, and Filip Borcov Incredible from Site.pro, discussing shared hosting tips in Indonesia. Their expertise sheds light on the best practices and challenges businesses face in the local hosting market.

Indonesian market key features

The Indonesian market mainly operates in the local language, with about 99% of support provided in Indonesian and only 1% in English. Payment systems in Indonesia are pretty much diverse, with QR codes being the most popular payment method. Most of Indonesian companies accept payments using QR codes, credit cards or PayPal. Around 40% of all transactions are still conducted through bank transfers. The average price for domains in Indonesia is approximately 160.000 rupees for a .COM domain and about 300.000 rupees for a .ID domain, which is roughly equal to $20. The popularity of .id domains has been on the rise in recent years, making them as sought after as .com domains.

Customer support and preferences

In the Indonesian internet hosting market, 24/7 support is what really matters. When it comes to creating a website, customer preferences vary. While some tech-savvy people may attempt to create a website using a website builder, most small businesses prefer to have this service done for them. For instance, the aforementioned RumahWeb.com company offers both ‘do-it-yourself’ and ‘do-it-for-me’ website building services, depending on whether or not the client has ready-made content for their business.

Free vs. Paid services

Offering free trials improves customer retention because it allows customers to try out the product before making a payment commitment. Monitoring churn rates is also important, especially in Indonesia, where social media platforms like Instagram and TikTok are often the number-one choice for businesses. In such a way, websites become a necessity only in case of stable business growth.

Government Regulations

Recent government regulations have had a profound effect on the market as well. For example, the Indonesian government blocked TikTok Shop due to some trade regulations related to importing goods from China. This move caused significant disruption for small businesses that used TikTok Shops for their sales. As a result, many Indonesian companies began to complain about the injustice of such a rash decision, as TikTok was bringing them good sales. In this regard, Yusuf Nurrachman emphasises the importance of having your own website as a stable online presence.

Lessons learned

Lifehack #1: Omni-Channel marketing — the best way to promote in Indonesia
The RumahWeb.com company successfully applies Omni-Channel marketing, which has proven effective in Indonesia due to the wide range of media preferences among different population segments. However, relying solely on automated customer relations doesn’t work well in this market. Building trusting personal relationships with customers is super crucial to company’s success.

Lifehack #2/#3: If you break good relationships with your customer — then you lose everything. Understanding customer needs is what really drives your business in Indonesia.
Even if you work in IT and you think that all processes can be automated, so customer relations are well established a priori – no, it doesn’t work like that. The most important thing you have to do is establish good relationships with the customer, communicate and recognise their needs.

Summary

Indonesia, with a population of 270 million and growing Internet penetration, presents fantastic market opportunities. The country’s average salary and tourism industry are on the rise, which is expected to contribute to the continued growth of internet users. As the market evolves, businesses must focus on building strong relationships with customers and adapting to changing market conditions.

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Hosting Client Paying Late or Not Paying – What Do You Do? https://webhosting.today/2025/03/18/hosting-client-paying-late-or-not-paying-what-do-you-do/ Tue, 18 Mar 2025 16:42:22 +0000 https://webhosting.today/?p=1827 As a hosting business owner, few things can be as frustrating as a client who consistently pays late—or worse, refuses to pay at all. If you’re a web hosting provider, freelancer, or someone providing long-term services, this issue can be especially challenging. Not only can late payments affect your cash flow, but they also put […]

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As a hosting business owner, few things can be as frustrating as a client who consistently pays late—or worse, refuses to pay at all. If you’re a web hosting provider, freelancer, or someone providing long-term services, this issue can be especially challenging. Not only can late payments affect your cash flow, but they also put you in a difficult position with a client you’ve worked with for a long time. You don’t want to appear unprofessional, but at the same time, you can’t afford to keep hosting services for free or continue to let things slide.

In this post, we’ll look at what you can do when a client stops paying on time, the best strategies for handling late payments professionally, and how to protect yourself legally. Let’s dive in.

Understanding the Client’s Perspective

Before jumping into how to handle the situation, it’s worth taking a step back and understanding why a client might be paying late. In some cases, it could be a simple issue of forgetfulness or a temporary financial hiccup. However, when the behavior becomes habitual, it’s important to dig a little deeper.

In this particular case, the client may be moving on to a new service provider or a new developer, especially if they’ve begun re-developing their websites elsewhere. Clients sometimes feel justified in pulling away from a service they no longer value, especially if they believe they can get a better deal or faster service elsewhere. From the client’s perspective, if they’re no longer using the hosting or if they no longer find your services valuable, they might feel less inclined to keep paying on time.

On the other hand, this doesn’t mean your business should be left in a vulnerable position. You’ve provided a valuable service, and if they still have ongoing contracts with you, they’re still responsible for payment. A clear understanding of the client’s motives can help you approach the issue more strategically and professionally.

Using Tools to Ensure Payment

In some markets or countries, traditional methods like sending overdue invoices by post can still be effective in prompting clients to pay. While many businesses rely on digital communication, emails can sometimes land in spam folders or be easily ignored. For example, YourHosting.nl, one of the larger hosting providers in the Netherlands, sends physical reminders for unpaid invoices, often with a small percentage increase added as a late fee, how I know this? Well I once forgot to pay a renewal on a domain. This method provides a more tangible reminder for clients, which might make them more likely to pay attention and settle the balance.

On the other hand, some hosting companies escalate the issue by sending overdue accounts to collection agencies. While this approach can force clients to pay, it also brings additional costs and complications, both for the business and the client. Before taking this step, you should consider whether it’s truly worth pursuing, especially for smaller amounts. Legal action or collections can escalate costs and damage the relationship with your client, which may not always be in your best interest.

A more modern and cost-effective solution could be sending payment reminders via SMS or WhatsApp. Given that email inboxes are often flooded with messages, it’s easy for your email to go unnoticed or fall into the unread or promotional folders. An SMS or WhatsApp message, on the other hand, tends to stand out and is more likely to get the recipient’s immediate attention. It can be a less intrusive yet efficient method to remind your client about the overdue payment and potentially recover the amount more quickly than waiting for them to check their email. If this approach proves ineffective, you can still escalate the matter by sending a postal reminder or involving a collection agency, but SMS and WhatsApp can serve as a first line of defense in a timely, cost-effective way. Also there are plenty of automated providers you can connect into your billing solution.

One of the first things to consider when a client is paying late is the terms outlined in your contract. Whether you’re working on a monthly hosting agreement or a long-term contract, the specifics of late payments should be clearly defined.

If your contract states that payments are due on a particular date each month, and there’s a clause regarding late fees or suspension of services for non-payment, then your client is legally obligated to honor those terms. However, if your contract doesn’t address late payments or the consequences of non-payment, it’s a good idea to consult with a lawyer to determine the next steps and to update your contract for future clients.

Legal protection is essential, as it will guide you on how to handle a client who may refuse to pay. For example, can you charge interest on overdue payments? Can you suspend services? How long do you need to wait before taking action? A solid contract gives you a framework for dealing with these situations and protects your rights.

Options for Handling Late or Non-Payment

If your client is consistently late with payments or hasn’t paid at all, it’s important to consider your options and how best to proceed. Here are the main steps you can take:

1. Sending a Final Notice

The first step should always be a clear and professional final notice. It’s important to remind the client of the outstanding balance and specify a deadline for payment. A final notice should be firm but polite, outlining the consequences if the payment is not made within the given timeframe.

In your notice, you might include a warning that services will be suspended if payment is not received. You can also let the client know that late fees or interest will apply after the payment deadline. Being upfront about the consequences can motivate your client to act quickly.

2. Suspending Hosting Services

If the client still fails to make payment despite the notice, suspending the services can be an effective next step. However, before suspending services, you should give them a clear 3-day notice to settle the balance. This allows the client a final chance to pay and avoid the suspension.

Suspending hosting services doesn’t mean you’re terminating the contract— it just means that the services are temporarily halted until payment is made. It’s important to note that if the client has control over their DNS and is technically capable of moving their websites elsewhere, suspension may be the most practical solution to enforce payment. However, be sure to mention that if services are suspended, you’ll charge a reactivation fee to cover administrative costs.

Taking legal action is a last resort, but sometimes it may be necessary to ensure that you’re paid for the services rendered. If the client continues to ignore your payment requests and the amount owed is significant, small claims court can help you recover the outstanding balance.

When considering small claims court, it’s essential to review the remaining months on the contract and calculate the amount owed. In small claims court, you may be able to claim the full remaining value of the contract, depending on the circumstances and the specific details of your agreement. However, before going down this route, be sure to weigh the potential costs and risks, such as the possibility of damaging your professional relationship with the client.

4. Alternative Solutions: Payment Plans or Negotiation

Before resorting to suspension or legal action, you might want to consider offering the client an alternative solution, especially if you want to avoid escalating the situation further. A payment plan, for example, could help your client pay off the outstanding balance over time. Alternatively, you could offer a discount for paying upfront or by a specific date.

In some cases, the client might be facing financial difficulties and needs more flexibility. A negotiated payment solution may allow you both to avoid conflict while ensuring you receive payment. If you decide to go this route, be sure to document any new agreements in writing to avoid misunderstandings.

Handling Website Files During Suspension or Termination

When suspending or terminating hosting services, one of the more complicated aspects to consider is the website files. While it’s essential to keep backups of the files, you need to understand your legal rights and the client’s rights in terms of ownership.

If your contract specifies that the client owns the website files upon payment, you may need to provide the files upon request. However, if the client has failed to pay, you may have the right to retain the files or even delete them if the services are terminated for non-payment. In these cases, it’s a good idea to hold onto the website files in case the client wants to retrieve them in the future, but this should be clearly outlined in your contract.

It’s important to communicate with the client about the situation and provide them with the opportunity to retrieve their files before termination if they wish. Even if the client has already moved their websites to a new developer, holding onto the files can serve as proof that you provided the service and maintain a professional approach in handling the issue.

Managing Client Relationships Going Forward

While it’s important to handle the immediate issue of non-payment, it’s also worth thinking about how to prevent similar situations in the future. Here are a few strategies to consider:

  1. Clarify Payment Terms – Make sure your contracts clearly outline payment deadlines, late fees, and suspension policies. If necessary, require upfront payment or use longer-term contracts that don’t leave you vulnerable to late payments.
  2. Set Boundaries with Difficult Clients – Learn from this experience and establish clear boundaries with clients. If a client is causing consistent issues or taking advantage of your flexibility, don’t be afraid to enforce your terms or move on to more reliable clients.
  3. Professionalism is Key – While it can be frustrating, always strive to handle the situation professionally. You’ll avoid damaging your reputation and be better positioned to maintain healthy client relationships in the future.

In summary

Late or non-payment can be a serious issue for any hosting business, but it’s important to approach it thoughtfully and with a professional mindset. By having clear contracts in place, communicating your expectations to the client, and using legal channels when necessary, you can protect your business and ensure you’re compensated fairly for the work you’ve done.

Ultimately, it’s about balancing the needs of your business with maintaining professionalism and protecting your reputation. Whether you choose to suspend services, negotiate a payment plan, or take legal action, the key is to address the issue head-on and make informed decisions that safeguard both your financial interests and your business’s long-term health.

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Expert’s Voice: Cloud hosting VS Traditional VPS Hosting: How to save $450k/month https://webhosting.today/2025/02/26/cloud-hosting-vs-traditional-vps-hosting-how-to-save-450k-month/ Wed, 26 Feb 2025 11:21:24 +0000 https://webhosting.today/?p=1870 Choosing the right hosting can drastically cut costs and avoid unexpected bills. Cloud hosting offers pay-as-you-go flexibility and automatic scaling, while VPS hosting provides fixed resources and predictable pricing. Here’s what you need to know: Key Differences: Which one is cheaper: Cloud hosting vs. VPS hosting? Cloud vs VPS Hosting: Main Differences Cloud Hosting Explained […]

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Choosing the right hosting can drastically cut costs and avoid unexpected bills. Cloud hosting offers pay-as-you-go flexibility and automatic scaling, while VPS hosting provides fixed resources and predictable pricing. Here’s what you need to know:

Key Differences:

  • Cloud Hosting: Scales automatically, charges for actual usage, and handles traffic spikes well.
  • VPS Hosting: Fixed resources, consistent monthly fees, and better for steady workloads.

Which one is cheaper: Cloud hosting vs. VPS hosting?

Cloud vs VPS Hosting: Main Differences

Cloud Hosting Explained

Cloud hosting works by distributing resources across multiple servers, offering more reliability and adaptability. It automatically adjusts resources in real-time to handle traffic changes, ensuring smooth performance. With a pay-as-you-go pricing model, businesses only pay for what they use, avoiding unnecessary expenses.

For example, small software and e-commerce startups have effectively used cloud hosting to manage fluctuating traffic without overspending [2].

VPS Hosting Explained

VPS hosting allocates a set amount of resources – like CPU and RAM – on a single physical server, delivering consistent performance. Don’t confuse it with shared hosting. However, it doesn’t allow for easy scaling. This means while your site benefits from dedicated resources, you could end up paying for unused capacity during low-traffic periods [1][3].

Feature Comparison

With providers like AWS, Google Cloud and DigitalOcean many SMEs are starting out with cloud hosting.

“Cloud hosting offers cost-efficiency, scalability, and high reliability, making it an ideal choice for SMBs looking to optimize their hosting expenses while maintaining operational efficiency” [2].

Next, we’ll dive deeper into how these options might turn into a bill trap.

Cost Breakdown: Cloud vs VPS

Pricing Structure Comparison

Let’s compare the cost structures of cloud hosting and VPS hosting:

Cloud hosting offers a flexible pay-as-you-go model, allowing businesses to adjust resources in real time and manage costs effectively [2]. On the other hand, VPS hosting requires upfront decisions about resource allocation, leading to fixed monthly expenses [1][3]. But if you take the time to seriously plan your IT-Infrastructure you are able to save a lot of money with VPSs.

The unexpected costs with cloud

While browsing X (fka Twitter) or Reddit you will often times see a user posting a screenshot of his Google Cloud bill. The user u/hostingtalk got charged $450,000 one month.

How does this happen?

Imagine you’re using a cloud service for a project, and your API key gets compromised. Suddenly, your usage spikes from a modest $1,500/month to a staggering $450,000 in a single month. You’d expect the cloud provider to flag this as an anomaly, right? After all, their systems are designed to detect unusual activity. But instead, you’re hit with a massive bill, and the provider seems unwilling to negotiate or even acknowledge the extenuating circumstances.

The Lack of Spend Controls: A Recipe for Disaster

One of the most glaring issues in this scenario is the lack of simple, user-defined spending caps. Google Cloud, for instance, doesn’t allow you to set a hard limit like “don’t exceed 3,000/month for this project.”

Why is there no easy way to set a strict spending limit? Why does the system allow a 200x spike in usage without triggering immediate alerts or warnings? These are critical questions that highlight the imbalance of power between cloud providers and their customers. It’s almost as if the system is designed to maximize revenue at the expense of user security and financial stability. But that would be crazy, right? Right… ?

What Can You Do to Protect Yourself?

  1. Demand Better Controls: Advocate for user-defined spending caps and more transparent billing practices. If enough customers push back, providers may be forced to implement these features.
  2. Monitor Usage Closely: Set up alerts and monitoring tools to track your usage in real-time. While this won’t prevent a breach, it can help you catch anomalies before they spiral out of control.
  3. Understand the Fine Print: Before signing up for any cloud service, read the terms and conditions carefully. Look for clauses related to liability, spending limits, and how the provider handles unusual usage spikes.
  4. Consider Alternatives: Explore other options that offer more transparent pricing and better spending controls or even fix pricing like a VPS. Don’t be afraid to switch if your current provider isn’t meeting your needs.

Picking the Right Hosting Plan

Best Use Cases

Cloud hosting works well for businesses experiencing fluctuating traffic or rapid growth, while VPS hosting suits those with stable workloads and a need for predictable expenses.

When Cloud Hosting Makes Sense:

  • Handles traffic that varies frequently and needs dynamic scaling
  • Supports businesses during rapid growth phases
  • Manages seasonal spikes in demand
  • Reaches audiences across multiple regions

For instance, Shopify merchants utilize cloud hosting to manage huge traffic surges during Black Friday without interruptions [2].

When VPS Hosting Works Best:

When comparing VPS hosting providers, keep these factors in mind:

  • Server locations in relation to your audience
  • Industry-specific compliance certifications
  • Quality of customer support and response times
  • Tools and help available for migration
  • Features for tracking and managing costs effectively

Conclusion

Key Takeaways

When choosing between cloud and VPS hosting, the main differences come down to cost structures, the danger of unexpected costs and scalability.

  • Cloud hosting works well for businesses with fluctuating workloads. Its pay-as-you-go pricing ensures you only pay for the resources you actually use BUT you pay for the ressources you use even if you have a technical error, making it a flexible option for scaling up or down as needed.
  • VPS hosting offers predictable monthly costs, making it a better fit for businesses with stable resource needs. The fixed resource allocation can provide consistent pricing and long-term savings for steady workloads.

Understanding these distinctions can help you make informed decisions about your hosting strategy.

FAQs

Is cloud hosting better than VPS hosting?

It depends on what your business needs. Cloud hosting works well for businesses dealing with fluctuating demands, seasonal traffic spikes, or fast growth, thanks to its flexible scaling and pay-as-you-go pricing. On the other hand, VPS hosting is a good fit for businesses with steady workloads that need dedicated resources and a reliable monthly bill [1].

Here’s a quick breakdown:

  • Choose cloud hosting for dynamic workloads and the ability to scale resources easily.
  • Choose VPS hosting for predictable performance and better control over resources.

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Expert’s Voice: Is the Shift to Managed Services Inevitable for Web Hosts? https://webhosting.today/2025/02/19/experts-voice-is-the-shift-to-managed-services-inevitable-for-web-hosts/ Wed, 19 Feb 2025 13:08:37 +0000 https://webhosting.today/?p=1887 The Changing Landscape of Cloud and Hosting Services In today’s digital world, every business needs to leverage cloud technology, whether for internal operations (accounting, ERP, intranets) or for delivering services to customers (eCommerce, SaaS applications, websites). With an overwhelming number of options available, including hyperscalers (AWS, Azure, GCP), traditional hosting with private or public clouds, […]

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The Changing Landscape of Cloud and Hosting Services

In today’s digital world, every business needs to leverage cloud technology, whether for internal operations (accounting, ERP, intranets) or for delivering services to customers (eCommerce, SaaS applications, websites). With an overwhelming number of options available, including hyperscalers (AWS, Azure, GCP), traditional hosting with private or public clouds, and cloud-native applications like Atlassian or QuickBooks, differentiation has become increasingly difficult for hosting providers.

The reality is that competing on price alone is no longer a viable strategy. Owning your own hardware and infrastructure to provide hosting services at a competitive level requires substantial capital expenditure (CapEx). For data centers, you’re often locked into long-term commitments with colocation providers to secure favorable pricing, but this comes with its own challenges—planning upgrades, handling replacements, managing outages, ensuring high availability, and constantly innovating to keep up with industry trends.

In hosting, stagnation equals failure. To survive, hosting providers must evolve beyond infrastructure and offer value-added services that set them apart.

The Shift Towards Managed Services

Since competing on price is impractical, the key to success lies in differentiation. The biggest opportunity in the hosting industry today is the rise of Managed Cloud Services. Many SMBs lack the budget for a full-fledged IT department but still need cloud technology to remain competitive. They cannot afford the learning curve of cloud adoption, and they need experts to guide them in maximizing the potential of cloud platforms.

Stressed Owner looking for options

Managed services fill this gap by offering businesses the expertise they need without requiring them to hire in-house specialists. This trend isn’t limited to SMBs—even larger companies with dedicated IT departments struggle with cloud complexity. While they may have skilled teams, they are not necessarily cloud experts. Here, the co-managed IT model becomes an attractive option, allowing businesses to leverage external cloud specialists who work alongside their internal IT teams.

This shift presents a unique opportunity for hosting providers:

  • Offering tailored Managed Services for cloud adoption, optimization, and security
  • Providing co-managed cloud solutions for IT teams that need additional expertise
  • Ensuring businesses maximize their cloud investments without unnecessary complexity

The Demand for Flexibility: Self-Service vs. Managed Services

Interestingly, while many businesses want Managed Services, they also demand a degree of self-service control. This creates an expectation for hosting providers to deliver a hybrid model—allowing customers to handle certain tasks while offering expert intervention when needed.

Achieving this balance requires the right tools and automation to provide customers with on-demand management while ensuring high-touch support when necessary. This means hosting providers need to:

  • Offer intelligent self-service dashboards for customers who want hands-on control
  • Provide proactive monitoring and automation to prevent issues before they arise
  • Allow customers to easily switch between self-service and managed support as their needs evolve

Those who can execute this hybrid approach effectively will stand out in an increasingly competitive market.

The AI Factor: Revolutionizing Managed Services

A new force is shaping the future of managed services: Artificial Intelligence (AI). AI has the potential to automate many aspects of cloud management, including:

  • Predictive maintenance and automated troubleshooting
  • Intelligent workload balancing and performance optimization
  • AI-driven security monitoring and anomaly detection

However, AI presents a paradox—while it enhances efficiency, most customers still prefer human interaction when dealing with complex issues. The key challenge for hosting providers is to determine what should be automated and what requires human expertise. Striking the right balance is essential to ensuring AI enhances service quality rather than replacing the human touch that customers value.

A forward-thinking hosting provider must:

  • Leverage AI for automation while maintaining real-human support for complex interactions
  • Offer AI-powered insights but allow customers to engage directly with experts when needed
  • Ensure AI-driven chatbots and ticketing systems complement rather than replace customer support teams

Defining Service Expectations: Avoiding the Managed Services Black Hole

One of the biggest challenges in offering managed services is scope creep—where customer expectations grow beyond what was initially agreed upon. Many customers assume that Managed Services are all-inclusive, which can quickly become a resource drain for providers.

To avoid this, hosting providers must:

  • Clearly define service boundaries—what is included and what incurs additional costs
  • Establish tiered support levels to match different business needs
  • Implement fair usage policies to prevent excessive demands on support teams

Managed services should be an opportunity for profitability, not a black hole that consumes resources without proper compensation. Transparent pricing and service agreements are essential to maintaining sustainable operations.

The Future: Hosting as a Service, Not Just Infrastructure

The web hosting industry is undergoing a fundamental transformation. The traditional model of renting servers is no longer enough—businesses need cloud expertise, flexible management options, and AI-enhanced services. The winners in this new era will be those who go beyond infrastructure and provide real, value-added managed solutions.

For hosting providers, the future lies not in selling space, but in selling expertise, automation, and peace of mind. Those who embrace this shift will not only survive but thrive in the evolving cloud ecosystem.

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