Fear Outweighs Cost Concerns With SMB IT Needs

Monday, July 13, 2009
Posted by Brawlin Melgar

by Lauren Whitson

-Tough economy forces many to review IT costs.
-33 percent of businesses are too afraid to switch server solutions.

Philadelphia, PA, July 13, 2009: When the economy tumbles, budget review is something every business must do.  Analyzing a company's spending on IT solutions is currently an unfortunate necessity for many businesses, according to new survey results released today by Fasthosts Internet, (www.fasthosts.com), a leading reseller web hosting provider.  While focused on finding out from WIRED readers just how and why servers are used today, the survey seems to show that now, more than ever, companies and individuals are forced to re-evaluate their IT systems and question what they really need due to the unsettled economy.  In these difficult times, one-third said they still hesitate to consider a replacement server even if it is necessary.  At the same time, 53 percent of business owners are becoming more involved in decisions relating to their IT needs in light of the challenging economy. 

When times get tough, a company's budget spending strategy can seriously affect the quality and quantity of the company's technology resources.  The Fasthosts survey showed 29 percent of respondents have reviewed their budget for servers in the past six months.  Nearly twice that many (54 percent) have analyzed their finances during the last 12 months.

However for many people, the fear of what might happen when they replace their server looms over their decision.  About 1 in 3 survey participants (33 percent) said they would be fearful of switching to a new provider because of a potential disruption to their service.  Perhaps bound by this fear, 22 percent have not updated or changed their server solution in at least three years even though at least 25 percent said they want to lower their external server costs.

Stephen Holford, Chief Marketing Officer of Fasthosts Internet, says the company understands where its customers' fears lay and hope they are able to clear up questions about servers.

"Fasthosts products are offered by the leading provider for reseller web hosting in the UK, and one that is making a strong mark in the US," Holford said.  "We try to emphasize that a background in IT isn't necessary to use and profit from our servers and reseller solutions so that smaller businesses can better understand their IT needs.  If given a closer look, they will see the top-of-the-line solutions that Fasthosts offers at very competitive prices."

Getting the most value for their money is a concern many have when deciding how much should be spent on their IT provider, especially regarding servers.  Almost half (45 percent) of survey participants said they felt overcharged for costs including monitoring fees, server management, additional memory and IP addresses, back-up space, consultancy fees and server traffic.  One third of the respondents, however, pay more than just their provider to upkeep their server.

Holford added, "Balancing a budget is difficult, especially when there is uncertainty concerning necessary versus peripheral costs.  IT solutions, like servers and online services, are important to any company.  It seems that people must realize that there are providers out there like Fasthosts that can alleviate concerns by offering solutions that exhibit both quality and value for a reasonable cost."
Fasthosts provides its resellers with top-of-the-line web hosting services and 24/7 dedicated tech support based in the US.  As a web hosting specialist and the #1 provider for web hosts in the UK, Fasthosts offers its customers an extensive range of solutions including domain registration, email accounts, shared and reseller web hosting, and dedicated servers.  All US customer websites are hosted within the company's state-of-the-art data center in Lenexa, KS and benefit from 30GBit high-speed connectivity.

For more information on Fasthosts and reseller web hosting, please visit the web site at http://www.fasthosts.com