Managed hosting is basically a service with a web hosting company where you rent and entire server of your own and then pay the company to manage it for you. This is slightly different from just a dedicated server. With this type of server, you are renting the whole server, but you are free to manage it administratively as you wish. You can load your own software and programming and take care of the entire server system remotely. A managed option is better for some companies, though. Here are a few types of companies that might use these types of hosting services.
Many companies that are large enough to need a dedicated server but not large enough to have a dedicated staff for the purpose of working out the administrative part of the web hosting package will use managed hosting instead. Mainly, these companies just don't have the manpower in the technical realm to both manage the server and run the actual website. Instead of developing a site, the staff ends up spending too much time troubleshooting the underlying server, meaning they get less work done on the thing that your potential customers actually see.
One of the ways to find out whether or not you need a managed service is to actually talk to your technical staff. Figure out just how much time they're spending every week working on your dedicated server. If they are spending more time on this than they are on your actual website, you might actually be able to save money by switching to a managed service. This can basically free up your staff to do more development and bring in more money for your company, with equals out to lots of money saved in the long run.
Choosing to move to a managed hosting service can be a big leap. It's much different from either a shared server or a straight up dedicated server. In order to find the best services for your needs, it's vital that you look at the offerings of different companies. Some companies will have set packages that you can purchase, and others will let you craft a package that meets the particular needs of your website. Either way, make sure that you're going to get excellent service for your money. If you've done your research well enough, a managed server solution should actually end up saving you money in the long run rather than costing you more.
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