If you have heard about cloud hosting, it is basically the delivery of hosting as a service rather than the product. The program runs on the computers of the providers while you pay a monthly or annual fee for the accessibility. With this kind of hosting service, there are always expenses involved even if it is considered as the latest technology.

Types of cloud hosting service providers

There are three main types of cloud hosting services that you should be familiar with.

  • Platform as a Service (PaaS) such as Windows Azure. These are services that IT personnel utilize in the application development as well as for delivering application and web hosting to the end users. The IT personnel gains remote access to virtual computers that are hosted at the data centers of the providers.
  • Software as a Service (SaaS) includes Microsoft Office 365, Google Docs and Salesforce. These services are designed for the end users since they embody the end result of cloud computing.
  • Infrastructure as a Service (IaaS) includes Rackspace Cloud Hosting and Amazon EC2. These are quite similar to PaaS providers but they offer the IT personnel with more control on the OS.

What you need to know when getting cloud hosting services

When signing up for cloud hosting service, the contracts used follow a fixed cost every month for a given time frame. Hidden costs that you might expect from the service must be included in this rate. With a fixed cost for the cloud hosting service, it is easy to predict the expenses. On the other hand, when the hosting provider decides to change its contract, whether it is increasing or decreasing the number of users or expanding with more services, that is the time when hidden costs start appearing. In most cases, hosting providers are not clear when it comes to these costs and these could continue depending on the scenario. Always make it a point to determine first what you need from the cloud hosting service so that you will not end up paying for the hidden costs.

Hidden costs in SaaS services

With the SaaS services, they offer a per-user license where you have to pay every month or year. There are hidden costs that are categorized in three areas.

  • Customization can result to development as well as maintenance costs that you were not expecting.
  • Integration will likely happen with the data stores, in-house applications as well as other SaaS services. These integrations should be managed and maintained properly if hidden costs are to be avoided.
  • The SaaS service that you purchased for only 20 employees is a good investment, but once the number of users goes beyond, you will be charged with hidden costs. Do not simply grant any individual access to your SaaS app.

What you can gain from cloud hosting

Even though some are faced with unwanted costs with their cloud hosting service, there are still benefits that you can gain. As long as you utilize the hosting service right, you might not end up with hidden costs while at the same time enjoying the benefits the service offers.

  • Cost-effective method in terms of usage and maintenance. With cloud hosting, it is readily available at an affordable price and can help decrease the expenses.
  • Unlimited storage is the best part about cloud hosting. It simply means that you no longer need to worry about running out of storage space or paying more just to increase your available space.
  • Recovery and backup are offered with cloud services. It makes backup and restoring a lot easier and carried out in a quicker manner. Most of the cloud hosting providers is competent in handling recovery of information.