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Last Updated: Tuesday 29th of July 2014
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Articles : Contracts or No Contracts? Making the Right Choice

Tuesday 29th of July 2014 When it comes to deciding what you need for your business, come to terms with what your business really is. Is it continually changing and expanding to include new business ventures or does it stay fairly consistent with itself? Usually, the answer to this question is the deciding factor in whether or not a contractual agreement would be right for you. A contract, depending on the terms, can offer a few advantages. Itís more affordable, it can be upgradeable to include new features and options and can allow you to decide whether or not you want to continue business with this company in the future. On the other side of the coin, paying as you go for a server can keep you safe from making the wrong purchasing decision. Being able to change server companies can have its advantages. If you make the wrong choice and the server does not live up to your expectations, you arenít left with a lengthy contract to wade through.

Letís take a more in-depth look at the factors you should consider when making your choice. A contractual agreement has the following benefits: ē Itís much easier to tweak your serverís features and options to include only what you need and nothing that you donít. A contract provides you with the ability to monitor your siteís needs and future requirements. ē A contract can save you a lot of money. Usually, signing a year long contract can save you even up to 20 percent or, why not, even more in comparison to a non-contractual agreement.

Contracts automatically renew so you donít have to deal with making payments every year. Should the contract be everything you need, renewing takes place automatically. Otherwise, simply discontinue the automatic renewal process. When your contract expires, the agreement is legally over. ē Contractual agreements may guarantee a specific level of service for the duration of your contract. Should performance levels fall below a certain level, you might be entitled to additional compensation. These details are in the fine print of a server agreement.

Some contracts come with a higher level of customer support, sometimes 24/7. These additional perks are reserved for people willing to dedicate their payments for periods of a longer duration. ē Contractual agreements can give you a better understanding of the service features and options you are receiving. Being able to research every small detail of the services provided to you may help you make better business decisions based on the presented data. Non-contractual agreements can benefit your business in the following ways:

No minimum fees. Fees are sometimes associated with contractual agreements. There is no minimum data transfer amount purchase requirement. True pay as you go pricing will help your business to understand exactly what it needs in a contract before considering one. Early planning and accurate statistics are the keys to the long-term success of a business. ē No termination fees. With almost every managed hosting server contract, there is going to be early termination fees. These fees can be quite lofty. If you choose the wrong server hosting, youíre left with the cost of having to reformulate your plans.

ē Pay only for the services you need. Nothing more, nothing less! Making the decision is pretty simple. If your business is just starting out and you have no idea what your business will require, then paying as you go makes the most sense. Why would you want to run the risk of signing a contract when you have no idea what your online business truly requires from managed server hosting?

After a year or so of paying only for the services you need, you will be able to make a much smarter purchasing decision when it comes time to sign a contract. You avoid the early termination fee, you get to gather accurate statistical information about your websiteís visitors and bandwidth and will be more able to make accurate projections regarding the future requirements of your business.

Signing the contract after this point will be easy and leave you with the peace of mind that comes from statistical data. In almost every instance, you would end up overpaying for services you donít need if you obligate your business to a contract too quickly. After your first contract expires, you might want to begin another cycle of pay as you go. This will give you time to research the signing of another contract or, move on to another managed server hosting provider.

It’s all about trial and error. You must be able to accurately understand what your business needs and why. All projections which have to do with the future needs of your business will be based on this dat

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