There are a number of web hosting providers and they all entice their customers with incredible deals – it is prudent therefore to have a thorough understanding of the industry before seeking their services. The essence of webhosting is to provide you with a platform to display your wares, reach clients and be reached by a large number of potential customers. Your principle concern is to do it efficiently at a reasonable price.

The business of web hosting has a chain of players – at the top of the chain is the datacenter that provides the connection and houses the server, followed by a web host company that maintains the server and sells space to the webhosting company which hosts your website. Some time the webhosting company works directly with the datacenter to eliminate the middle company and shortens the chain.

Survival of the web hosting industry is courtesy of the economic notion of competitive market. Entry to this market is unrestricted since internet is a global medium that is not subject to unnecessary barriers. The cost of investing in the web hosting business is also minimal. This has seen a proliferation of webhost businesses resulting in an unbalanced market situation where supply exceeds demand. Consequently the price of space and data transfer which essentially is what is on sale, have been on the decrease. Larger webhosts companies which act as wholesaler’s device cheap hosting and reselling packages for smaller companies (retailers) thereby increasing the number of webhosting companies that you have to choose from.

This scenario means you are faced by myriad choices offering cheap webhosting services and that can be tricky. Cheap may actually mean low quality since the provider may be making so little from a single deal to be keen in offering after-sales services as required. The factors you should take into account are support services and stability. The provider should be able to guide you how to post materials on your website or issue warning about any anticipated interruption. Any delay in response from your provider is a red sign of unreliability.

Stability is all about uptime as opposed to downtime that you can get from your provider. Uptime indicates the stability and reliability of the provider which in turn depends on the provider’s servers and network. Excluding other factors which are out of control of the provider 99.5% is acceptable.

The cost factor depends largely on the use of your website and the budget. Business site may require more disk space and high amount of data transfer as compared to a personal website. The more the space and data transfer the higher is the cost.