One of the biggest problems online is the advent of cheap hosting platforms that promise unlimited bandwidth for a few dollars a month. Any serious business should take these promises with a grain of salt. Not only do the terms and conditions heavily limit actual use, but they also leave room for arbitrarily suspending your account. If you are serious about web hosting, you should colocate your servers with a provider like Rack Alley. Here is why:
With a colocation facility, you have to travel to the location to get physical access to the server. However, when it comes to web hosting, physical access is not necessary. Almost everything you need to do is possible remotely. If you use a Los Angeles colocation facility, then you cut down on travel.
The biggest advantage with colocation is the amount and cost of bandwidth to your server. With a data center, you have access to massive amounts of bandwidth. You can serve as many uses as your physical hardware can handle. Also, you will be paying much lower rates than you would in a self-hosting environment.
You own everything: the server and the software. You don’t need to pay additional licensing fees, or maintenance. Also, if the need arises, you can upgrade your hardware at any point. Need more memory? Just buy the new modules and have them installed.
Last, but not least, colocation provides uptime guarantees for infrastructure that you will not get under any other circumstances without massive capital investment.