Private servers are owned by individual companies. These servers are often preferred because this solution ensures there are no interruptions due to another company's negligent behavior or unscrupulous business practices. Private servers may be hosted on-site or off-site depending upon the company's needs. If private servers are hosted on-site, companies can purchase pre-configured servers to assist companies with data storage and application hosting.
Cloud hosting services provide private server services for a low monthly cost. Virtual private servers are becoming more popular. As more people use virtual private servers, the benefits become apparent. Companies simply pay one low monthly fee for applications and data storage to be hosted in the cloud. The monthly fee includes maintenance, server hardware, data storage and application hosting.
Limited Access. Private servers are not accessible by anyone except an authorized user.
Freedom to Choose. Owners have freedom to choose server functions and software stacks.
May Be Less Expensive. In some instances, the housing price for private servers are less expensive than similar dedicated servers.
Server Activities Regulated by Legal Entities. Private servers are only regulated by the law if hosted on premises. Private servers are not regulated by the policies of the hosting provider.
Access to More Resources. Companies with private servers typically have more disk space, CPU time, memory and other resources. Some servers can hold up to 72 Tb of data. Many companies require this type of storage capability to operate mission critical applications and store company-sensitive data.
May Be Unnecessary for Small Projects. Some projects do not require this type of security or computing power. The cost for extra security may outweigh the actual cost of hosting the application on a cheaper solution. Companies are advised to buy a web hosting plan with fewer resources if the projects are small. For instance, companies with ecommerce sites are more likely to require private servers than companies hosting informational websites with no databases or shopping cart required.
Requires Technical Support for Maintenance. Self-hosting a private server requires a full-time staff member to monitor security and other operations. The configuration should alert staff members of problems or breaches in security. Pre-notification allows technical staff to address issues before the problems escalate. If the problems escalate, the entire server could shut down and cause the company to lose online sales or subscribers.
Full-time staff members are expensive. Most small companies cannot afford the expense. For this reason, companies with private servers often select third party vendors for assistance. Third party vendors or shared servers are one way to reduce expenses.
May Be An Expensive Solution. A new server can cost several thousands of dollars or tens of thousands to keep a business running optimally. Many companies cannot afford the technology. The upgrades are even more expensive. Most small start-ups cannot keep up with the technology upgrades required to keep the business competitive.