In dealing with Real Estate, whether you do your business in an office, a building, or a shopping mall, there will always be rent. And of course, this figure will vary considerably - according to the amount of space you're renting, where you're renting it, and who you're renting from. 

The same is true in Cyber Space. The only thing different is the term used. Way back in the late 1990's when the Internet was brand new and had just come into existence, the popular term among web professionals was "maintenance". Now that we've all become a bit more enlightened with the changing of the millennium, it's more commonly referred to as "hosting" fees. Undoubtedly, the term will continue to evolve. But no matter what you call it, it all means the same thing.
Maintenance = Hosting = Rent.

Now, as to what "Hosting" really is...  well, it really is rent! And when you pay a monthly maintenance charge, or hosting fee, you are actually paying rent for the space your files take up on the Hosting company's Serving Computer. 

You see, a web site is actually a group of files, stored on a computer, and served to anyone who asks to see them. And in order for people using the Internet to see those files, they have to be stored on a special kind of computer that is very powerful, extremely expensive, and unbelievably fast. This special computer is called a "server"...  because that's what it was designed to do; serve up web sites. 

Technology is always improving. Servers are getting quicker and quicker. And with good reason! Statistics show that if a web site isn't served within about 15 seconds, a significant loss of traffic will occur. After about 20 seconds, almost 50% of your "could have been" customers have already moved on. 

A hosting company must continually upgrade to the latest and fastest serving technology to stay on top. When it comes to servers, last year's "cutting edge, state of the art" server is this year's "discontinued close out special".

With as fast as technologies is advancing these days, when a "cutting edge" hosting company upgrades it's equipment, it is left with a mountain of enormously expensive equipment - that although it is in great shape, and hardly used, it is literally useless to the company. So in order to recoup some of the cost of this expensive, but now useless equipment, the company sells it off. 

But who would buy this "excellent condition" but obsolete "blue light special" hosting equipment? 

Well... let's just say that I hope it wasn't the hosting company you're thinking about going with. 

Don't get me wrong. There is a place for economy web hosting. If you want to put up a web memorial for your dearly departed pet hamster, "Grizzly", by all means utilize the most economical hosting company you can find. There are even places that you can host a site for free. (Be sure to keep in mind Tip 1 and Tip 2 from the previous page.)

But if you are in a business of any kind, and you are serious about your success, going with anything less than a "cutting edge" host is self defeating.

Review:
1. There is no free lunch.
2. Keep your site's visitors safe from unethical prying eyes.
3. Generally speaking, you get what you pay for.  

Okay, now let's move on to other ways to evaluate a hosting company.