Upgrading your system to a dedicated server can help further the expansion of your business. Although cost intensive in comparison to shared platforms, dedicated servers are significantly more powerful and can be used to remove the performance bottleneck you will invariably encounter using a shared package.
With the above in mind it then becomes a question of deciding when to take the plunge and invest in a dedicated server or perhaps servers. Clearly, part of what makes a business successful is minimising unnecessary expenditure so it’s not a decision to take lightly as you can do more harm than good should you get the timing wrong, particularly if your income vs. out-goings are finely balanced. I’m not dismissing the effectiveness of shared platforms because they work and work very well given their intended purpose, but the important part is remember what that purpose is; to allow small businesses and start ups to establish their place in the market. However as your business grows a shared package becomes less optimal and more of a place holder.
Remember that your business is only as good as your reputation and general customer satisfaction. In an ever congested market place building and maintain your credibility as a service provider is paramount as you have to provide your customers a reason to stay with you. Obviously you can do this in several ways and good customer service goes a long way, but what importance does customer service have if you’re providing a substandard service full stop. As your client base grows a shared platform will eventually begin to suffer a loss in performance. In the event of such an occurrence it then becomes logical to assume that your customers will question whether their current service represents good value for money or not. Should they decide not, there is a very real risk of losing custom to competitors and perhaps more significantly reputational damage, somewhat measureable by reviews on sites such as trust pilot, for example, which then begins to affect your ability to generate new custom.
Conversely, making the short term investment in a dedicated server will undoubtedly result in better performance, even in the face of an expanding client base. Clearly, this provides good value for money which in turn enhances reputation and helps to generate future custom.
The above paragraphs provide an intuitive, slightly hypothetical walk through of how improving value for money by improving the speed of your server ultimately helps drive your business forward. However it can, in certain situations, be equally as important to stay ahead of or match your closest competitors. Consider the following situation; two companies A and B, both offering a shared hosting package for £4.99 per month with an equal market share. Company B upgrades to dedicated servers which results in a significant increase in performance. It’s obvious that company B will increase its market share should company A fail to react.
Investing in a dedicated server then is really about making the right call for your business at the right time. Moving from a shared platform to a dedicated server provides a significant boost to performance is a good way to maintain value for money and therefore customer satisfaction. Alternatively, it can allow you to compete more closely with your competitors and maintain market share. Failure to react, whether in the face of a growing client base or as a response to your competitors can result in reputational damage and impede the growth of your business.
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