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GuideRunning a Small Business

What you are actually paying for in web hosting

Hosting is the line on the bill that nobody can explain. It renews every year, it went up last time, and if somebody asked what it actually pays for, the honest answer in most businesses is “the website, somehow”.

That vagueness is expensive in two directions. Some businesses pay a premium for things they never use. Others pay very little for hosting that will not survive a bad day, and only find out on that day.

What hosting actually is

Your website is a set of files and usually a database. Hosting is a computer that holds them, stays switched on, and answers when someone types your address. Everything else on a hosting invoice is a service wrapped around that computer.

The price varies by a factor of a hundred, and almost none of that variation is the computer. It is how much of the computer you get to yourself, and how much looking after comes with it.

The four things you are paying for

Strip any hosting plan down and it is some mix of these.

  • Space on a machine. Shared with hundreds of other sites, shared with a few, or yours alone. More of it to yourself means more speed and more predictability, and more cost.
  • Somebody keeping it running. Security updates to the server, monitoring, replacing hardware that fails. This happens on every plan. What varies is whether it also covers your site or stops at the server.
  • Backups. Whether they exist, how often they run, how long they are kept, and, the question that matters, whether you can restore one yourself without a support ticket.
  • Support. Who answers, when, and what they will actually help with. “Support” on a cheap plan usually means the server is up and the rest is your problem.

Email, a free certificate for the padlock in the browser, and a control panel are often bundled in. Useful, and rarely the reason one plan costs more than another.

The shapes it comes in

Shared hosting. Your site sits on a server with many others. Cheapest by a distance and genuinely fine for a brochure site with modest traffic. The weakness is neighbours: if another site on the machine gets busy or gets compromised, yours can feel it.

Managed hosting for a particular platform. Common for WordPress. The host looks after the server and some of the platform too: updates, caching, staging copies, backups you can restore with a click. Costs more, and for a business that has nobody minding the site, it is often the cheapest way to have somebody minding the site.

A server of your own, virtual or otherwise. Predictable performance and room to run things a shared plan will not allow. Also a computer you are now responsible for, unless you pay someone to be. Cheap to rent, expensive to neglect.

A platform that bundles the site and the hosting. Squarespace, Wix and similar. You do not see the hosting at all, which is the point. You also cannot take it with you, which is the trade.

Where the money quietly goes wrong

Introductory pricing. A low first-year price that renews at several times the figure. Entirely legal and very common. The number worth comparing is the renewal price, not the headline.

Paying for capacity you will never use. Plans sold on storage and visitor numbers that a small business site will not approach in its lifetime. Bigger is not better if it is unused.

Backups that exist on paper. The plan says “daily backups”. Nobody has ever tried to restore one. Some hosts keep them for days rather than weeks, some charge for a restore, and some store them on the same machine as the site, which protects you from almost nothing.

Hosting bundled with the build. The person who made the site hosts it, at a price that includes some unstated amount of their time. That can be excellent value. It can also be a markup on cheap shared hosting with nothing extra behind it. The only way to know is to ask what the fee covers.

Paying twice. Email on the hosting and email on Microsoft 365. Two backup services. A domain renewing with one company and hosting with another that also includes a domain nobody uses. Common, and easy to find with an hour on your subscriptions.

Three situations, worked through

A café with a five-page site and a menu. Shared hosting is right. Nothing on the site changes often, nothing takes payment, and if it were down for an afternoon the cost would be small. Paying for more than that is paying for reassurance rather than for anything the site needs.

A trades business whose enquiries all come through the website. Same size of site, different stakes. A form that silently stops sending costs real jobs. Managed hosting, or shared hosting with somebody actually keeping an eye on it, is worth the difference, because the risk is not the server going down. It is the form quietly failing and nobody noticing for a month.

A business whose site takes bookings or payments. The hosting is now part of how the business earns money. Speed matters, uptime matters, and restoring a backup quickly matters a great deal. This is where the cheapest plan stops being a saving.

Five things worth doing

  1. Find the renewal price, not the price you paid last year or the one on the sales page. That is the real annual cost.
  2. Check whose name the account is in. If it is not the business, that matters far more than the price. The same applies to the domain.
  3. Ask how a restore works, and ideally test one. A backup you cannot restore is not a backup.
  4. Ask what support covers: the server only, or the site too. Most disappointment with hosting is a gap between those two that nobody named.
  5. Look for duplicates, especially email and domains, which are bundled so often that businesses end up paying for the same thing twice.

Common misconceptions

  • “Expensive hosting is faster.” Sometimes. A slow site is more often slow because of what is on it than where it lives, and moving it fixes nothing.
  • “Unlimited means unlimited.” It means more than you are likely to use, under a fair-use policy that sets the real limit.
  • “Our host backs us up, so we are covered.” Possibly. Check how long backups are kept, where they are kept, and what a restore costs.
  • “Moving host is a big job.” For an ordinary site it is usually a day of work and a quiet weekend. It is the uncertainty, not the work, that keeps people paying for something unsuitable.

The honest summary

Hosting is a computer plus a varying amount of looking after. Most small businesses need very little of the first and somewhat more of the second than they are paying for, which is the opposite of how plans are usually sold.

The right plan depends on what the site does for the business rather than how big it is. A brochure site can live almost anywhere. A site that brings in the work, or takes the money, deserves hosting chosen for the day something goes wrong.

If you have a hosting invoice and cannot tell what it covers, send it over with a line about what the site does. The answer is often that it is fine, and occasionally that you have been paying for the same thing twice.

Common questions

How much should a small business pay for web hosting in Ireland?

It depends on what the site does rather than its size. A simple brochure site needs very little. A site that takes enquiries, bookings or payments justifies paying for better backups, monitoring and support. Compare plans on their renewal price rather than the introductory one.

Does the hosting company have to be Irish?

No. What matters is where the data is held, which is worth knowing if the site collects personal information, and whether support is available during your working hours. Plenty of businesses here host in other EU countries without any issue.

Is hosting included when someone builds my website?

Sometimes, and it can be good value. Ask what the fee covers: just the server, or updates, backups and support for the site as well. Also ask whose name the hosting account is in.

Should email be on the same hosting as the website?

It can be, and it is often bundled. Many businesses prefer email on a separate service such as Microsoft 365 so that a problem with the website never takes email down with it. If you already have that, check you are not also paying for unused mailboxes on the hosting.

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