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The server hosting model provides a best-of-all-worlds scenario by giving organizations access to server platforms to host their applications and data without shouldering attendant costs.
Server hosting is also known as managed hosting.
A MSP usually provides a portion or all of a hardware server to a client, and this includes a virtualized environment. For small applications that do not require significant computing resources, a client may choose to pay only for a virtualized or shared hosted server. For larger and more taxing applications, such as online transaction processing (OLTP) applications, it is better to lease an entire dedicated physical server. This is known as dedicated hosting.
A client may use the allocated server to suit requirements. They may install their applications and access them over the Internet, and enable or disable access. However, the hosting provider may establish some restrictions, such as the following: