What is server hosting? Plus benefits, types, and how to choose

In order to make the best decisions about an organization’s Information Technology (IT) infrastructure, it is helpful to have a clear understanding of the function of web servers and server hosting.

Many terms related to computers and the Internet are used casually or incorrectly, which can make a technical topic challenging to understand. However, with a functional understanding of the basics, making business decisions on subjects like server hosting becomes much easier.

What is server hosting?

Server hosting is the management of hardware resources to ensure that content such as websites, emails, and media files can be accessed and used by people through the Internet.

Individuals and organizations lease server hosting from web hosting service providers to give them the virtual real estate where their websites, email systems, and other Internet properties can be stored. The web hosting provider is responsible for keeping the server running and connected to the Internet, so requests and content can be communicated to and from end-user computers.

Other basic responsibilities of hosting service providers can include:

  • Keeping servers from overheating, which is a potential risk for hardware in use 24/7.
  • Replacing hardware when necessary.
  • Providing basic customer support.
  • If the server hosting plan is for managed server hosting, the hosting provider performs a range of additional tasks specified in the service agreement.

Benefits of server hosting

Security

Server hosting creates an additional layer of security for your website and data. Advanced security measures like firewalls, encryption, and regular software updates safeguard sensitive information from DDoS attacks and more. Dedicated servers are especially secure, because they offer an isolated environment. Access is controlled, which significantly reduces the risk of a breach.

Performance

Server hosting optimizes resources and processing power for the best possible performance. Dedicated CPU, RAM, and storage resources mean websites hosted on dedicated servers can handle high traffic volumes, complete tasks quickly, and provide great user experiences—without lag.

Customization

Server hosting allows for complete customization of the server, so organizations can tailor the environment to their needs. A dedicated server offers the flexibility to adjust storage capacity, install specialized software, or configure settings to meet compliance requirements. This lets businesses create a setup that aligns perfectly with their operational goals and tech requirements.

Scalability

As your business grows, so do your needs for more server resources and capacity. Server hosting offers seamless scalability, so you can easily upgrade or modify resources like CPU, memory, and storage.

This flexibility ensures that businesses can scale up or down in response to changes in traffic, user demand, or business needs without disrupting operations.

Reliability

Server hosting provides dependable uptime and reliability. Reputable hosting providers often guarantee 99.9% uptime or better, and most use redundant systems to prevent outages. This ensures that businesses can count on their hosted server to be accessible whenever it’s needed.

Types of server hosting

The different kinds of servers offered by providers suit the specific needs of organizations and offer web hosting for a myriad of different purposes.

Virtual private servers

A VPS, or virtual private server, is a type of dedicated hosting environment that is virtualized and resides within a physical server, shared with other users. A VPS replicates many properties of a physical server, with similar processes and functionality.

An online store that uses a third-party payment solution like PayPal or Square to handle sensitive customer data may prefer the value and scalability provided by Virtual Private Servers (VPS), which can scale as needed and are not tied to one dedicated server physically.

Dedicated servers

A dedicated server is a server that is fully dedicated to a single organization or purpose, such as hosting a large website or a complex database. A dedicated server provides exclusive access to its resources (CPU, RAM, storage, etc.) with a unique IP address so no other websites or applications can use your processing power or bandwidth.

Dedicated servers are popular among organizations with compliance concerns, such as healthcare companies and eCommerce merchants processing their own payments.

How to choose the best server hosting for your business

There is no ‘best server hosting’ for every situation. What’s best for your organization depends on your specific needs.

To help you decide, consider the following:

  • Setup: Different website configurations need different server types. If you own a WordPress website, for example, you should choose a server that’s set up for WordPress, like a WordPress VPS. If you operate an ecommerce website, you may want a WooCommerce VPS or Magento hosting.
  • Budget: Dedicated hosting may be a top choice for resource-hungry applications, it won’t fit into every hosting budget. If you can shoulder the initial cost, a dedicated server plan could serve you well in the long run. If not, a VPS is a great option as well.
  • Expertise: The more advanced your server, the more expertise you need to reap the benefits. A dedicated server generally requires more experience than VPS hosting, but you can also explore managed VPS or managed dedicated hosting, which lift all the technical work.
  • Scalability: In most cases, a VPS offers plenty of scalability for websites with moderate traffic levels. A dedicated server may not be as easily scalable, it offers the highest total growth potential for websites expecting substantial resource needs.
  • Support requirements: If you rely on top-tier support for your hosting, you definitely want to investigate managed hosting options for either VPS or dedicated server.
  • Security and compliance: Businesses often choose dedicated server hosting for single-tenant isolation, especially with sensitive data or strict privacy rules. Now, though, cloud providers offer multi-tenant options that meet standards like HIPAA and PCI. This lets you stay compliant while keeping the flexibility and scalability of a shared setup.

Getting started

When you’re ready to get started, or upgrade to a more advanced and reliable server, Liquid Web has a solution for every need. (Still want to learn more? See below for more resources.)

Top-tier VPS hosting

We’re talking:

  • The fastest VPS speeds available
  • Fully managed VPS options
  • 24/7 live support

Managed VPS services are also available.

Explore VPS hosting →

Dedicated server hosting

Dedicated or bare metal servers:

  • 99.999% uptime
  • Security rich
  • Built to spec

Managed dedicated hosting is an option.

Explore dedicated hosting →

Server hosting FAQs

What is managed server hosting?

Managed server hosting is a service in which the hosting provider is responsible for maintaining routine operating system updates, additional software updates, and other server-level management and configuration tasks. In addition to this, security patching and other account-level functions that are essential for the server’s minimum performance needs and use should be addressed.

Learn more about managed vs. unmanaged server hosting →

How do I change my web hosting server​?

Changing servers is called a server migration, and it definitely requires some technical expertise. You’ll need to:

  1. Prepare your new server: Make sure your new server is sized and configured for the incoming data and digital assets, and that critical services and packages that your sites depend on are ready to go, in the new environment.
  2. Assess data fidelity: Note which parts of your site are critical and which engage with other services. For example, plugins or themes that affect multiple pages should be audited before and after the migration to ensure functionality.
  3. Data transfer: This is typically the biggest part of the migration. The bandwidth available between your old server and the new server (or between your old hosting provider and your new hosting provider) determines how fast you can move data and how much downtime there will be.
  4. Test (QA/QC): Plan ahead and leave plenty of time for this process. Rigorous testing is how you identify unanticipated problems, audit the quality of issue resolution strategies, and confirm how running internal systems in the new environment will look.
  5. Change DNS and launch: Pointing your server at a new DNS is a simple, straightforward process. Make your DNS switch during off-peak usage hours, like the middle of the night, over the weekend, or on a holiday.

If you’re getting ready to move, get more details about server migration here. →

If you want to move to a new server host, check out Liquid Web’s migration services for a seamless, easy move.

What is the difference between hosting and server?

A server is a physical or virtual machine that continuously stores, shares, and retrieves content on the internet. Hosting is a service that rents servers, or portions of servers, to individuals and organizations so they can make their websites and apps available online.

Explore all of Liquid Web’s specialized hosting options →

Learn more

Stop putting it off: Why you should upgrade to dedicated hosting →

5 reasons your business needs a dedicated server →

5 Steps to Starting Your Own Web Hosting Business →

How to host your own website (in 5 simple steps) →

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