Businesses generally use two types of server. There's the on-site sort, which sit in the corner of your building (or, if you're smart, in a separate, locked room) and are used as central files and application stores.

Then there's the off-site, or external, sort. These servers are normally provided by another company (called a hosting company) and located elsewhere in a data centre (a secure building full of servers). They can be custom servers - built specifically to your requirements - or standard models.

While the on-site servers are usually used for storing files, managing email and other business systems, external servers are most often used to host websites, so they can be seen by everyone on the internet.

Choosing one of these servers can be confusing. And when you're already juggling cashflow, marketing, sales and the other admin that comes with running a business, it's tempting to take the first sensibly-priced option you find. After all, it's just a server - you've got other things to worry about.

Use it for everything
But hold on. These days, hosting a website is just one of the things you can use an external server for. Now high-speed broadband is the norm, these servers can perform most of the functions you'd previously have had to use your in-house server for.

For instance, instead of managing and supporting an email server in your office, you could host all your business email on a custom server provided by a hosting company. You could run your intranet and CRM system, store important files and more.

There can be significant advantages to doing it this way. Your initial expenditure is reduced and costs are predictable, because hosting companies usually charge a flat monthly fee. Often you get impressive levels of reliability and support too. If something goes wrong, most hosting companies will guarantee to fix it quickly.

There are a few caveats though; fast as broadband links are, if you transfer lots of huge files they still may not be quick enough. And if you're planning to transfer sensitive details - like customer information - you need to have total confidence in the security of your connection.

In truth, many businesses can see benefits by transferring some of their systems to one or more externally hosted servers. But you should definitely consider your options carefully; what's right for some companies may not be right for yours.

What sort of server do I need?
If you're choosing a server, look at your requirements carefully. It's easy to be blinded by headline processor speeds and a huge memory capacity, but often other elements are more important. For instance:

• What kind of support does your server have? Can you rely on your hosting company to fix problems fast? Look for 24/7 telephone support and a guaranteed service level agreement (SLA) which entitles you to compensation if things go wrong.

• Is the server secure? Quiz your hosting company on their security precautions. Make sure they run regular backups and use a strong firewall.

• Will it do what you need it to? Double check that you can use the software you need. Look for ‘full root access' - this means you can install whatever you want onto the server.

• Where are they based? If you're using the server to host your website, the country it's situated in may affect your search ranking - so UK companies should look for servers located in the UK. Find out if the support team is local too.

Many off-the-shelf servers offer excellent value for money. They start from around £50 a month, can be found with a wide range of specifications and are a really cost-effective way to get started.

Alternatively, you can consider custom servers. There's usually a slight premium for these, but because they're built to order you can decide exactly what kind of server you need, then get the hosting company to create it.

For more information visit www.webfusion.co.uk [1]