Innovative businesses of all sizes are inclining towards managed VPS hosting for one simple reason – it can save thousands of dollars. Almost everyone agrees to the fact that switching from traditional on-premise data centers to a virtualized model can produce significant cost savings.

But how does that influence the return on investment?

In its simplest form, ROI can be defined as value gained versus money spent. Keeping that in mind, let’s find out how managed VPS hosting can create better ROI for your business.

1. Avoiding Costs for In-house Infrastructure:

Building in-house IT infrastructure requires significant upfront investment in the form of hardware, floor space and energy. The costs associated with purchasing servers, network equipment, and real estate demands are completely eliminated if you opt for an outsourced managed hosting service – thus maximizing the return on your investment.

avoiding-costs-for-in-house-infrastructure2. Reducing Ongoing Maintenance Costs:

When you opt for outsourced infrastructure, the costs associated with maintenance are taken care of by the service provider. Server administration, data center security, and other day-to-day operational activities are performed by the hosting service provider, allowing you to concentrate solely on your business without having to worry about maintaining your infrastructure.

3. Efficient Utilization of IT Workforce:

Managing in-house server infrastructure requires skilled IT professionals. Opting for a managed VPS hosting can reduce the costs associated with employing dedicated IT staffs to maintain your servers. Why pay the wages to your own internal IT technicians when your hosting provider is able to take care of such things on your behalf? When you move to managed services, you can either get rid of IT staffing costs or redeploy them to more strategic business functions.


4. Avoiding Building for Peak Loads:

Consider what goes into planning an in-house data center owned and operated by yourself. You must plan to accommodate peak loads – which results in over-provisioning of server resources. The disadvantage of over-provisioning is that you almost certainly end up with wasted or redundant resources that you will be rarely utilizing. By switching to outsourced hosting service, you benefit from economies of scale. It means you only pay for what you use – with the added advantage of scaling up and down when the need arises.

5. Minimizing Disaster Recovery Risks:

Disaster recovery is one aspect that you can’t afford to ignore. When you operate your own data center, you must invest on building a disaster recovery plan – which is a challenging and expensive affair. Virtualization helps enterprises protect their server infrastructure against natural disaster, power outage, and other types of security attacks. Managed service providers will have multiple, redundant data centers to protect your business in case of a disaster. You can easily deploy a backup virtual server to replicate and store a copy of your ‘live’ server offsite. That way all of your eggs won’t be in the same basket and you can easily recover from a disastrous situation if the unthinkable happens.



If you perform the cost-benefit analysis carefully, you can readily understand the fact that managed VPS hosting can create significant return on investment for your business. Moving to the world of virtualized servers is a transformational investment in every sense, where you can leverage the economies of scale, reduce capital expenditure, minimize IT staffing costs and improve your return on investment by a couple of notches.