January/February 2005
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Web Hosting Agreements
What to Look For and What to Look Out For
by William S. Wyler
Schwartz, Manes & Ruby
As with many facets of the electronic communications revolution, web hosting agreements tend to be either unread in their entirety, ignored or presumed to be non-negotiable. As with anything else, some web host agreements are non-negotiable, but it never hurts to ask. More web hosts will negotiate than might be imagined.
Negotiating with a hosting company is not like trying to negotiate with the phone company or cable company, even though many of us consider the web host as just another utility provider. The difference is that the phone or cable company tends to be huge companies that are heavily regulated. They could not possibly negotiate with all of their customers. However, most hosting companies tend to be smaller, although there is inevitable consolidation taking place in the hosting business. They are also largely unregulated.
At any rate, when it comes to hosting agreements, if you want something, ask. It doesn’t hurt and it may pay off.
What are the key issues to look for when picking a web host?
1. How many other web sites are hosted and for how long. This will tell you a great deal about the host. It will tell you if they are new and untested, if they have a large enough base that they will be around for a while.
2. Obtain contact information about 4 or 5 companies that have used the host for at least a year. You want 4 or 5 references, because every company, even the worst, can dig up 2 or 3 companies that are satisfied with the service. If the host can not produce 4 or 5 references, look elsewhere. It is either new and untested with no track record or it is not attracting or keeping customers. This could be for a variety of reasons, none of which are going to be good.
When the references are called, ask first general and then specific questions, such as the following:
a) What component of the hosting services is the least satisfactory.
b) Have you made any complaints and if so how where they handled.
c) Has the system ever gone down and if so for how long was it down.
d) Does the host communicate significant service related issues promptly?
e) What does the host do or what are the plans for staying current with technology.
f) What is the host’s back up for if the server does go down and is it automatic.
g) Is there an off site backup server. The further off site the better.
These questions should first be asked of the host and then of the references. The answers to all of these questions should be both obtained, investigated and then, if they are satisfactory, they should be made part of the hosting agreement.
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