In most cases, a minimal spike in web traffic is not enough to warrant a Dedicated Server
for a small business. Virtual solutions are competitively priced with lower resource requirements. In the SMB space, most competitors live in the VPS space. The majority of dedicated servers are populated by internationally recognized, enterprise-level companies.
Examine how you will use your Hosting
service in-house. Do you have the staff to handle on-going maintenance? Can you upgrade hardware internally?
Depending on your answers, you may want to modify your approach. Managed hosting may cost more than traditional hosting, but it can improve your efficiency within the VPS environment to the level of a dedicated server. Although this is undoubtedly more achievable on the lower end of the resource spectrum, it is an aspect to consider.
Another consideration is future growth. Is your company looking to scale? Have you quantified this growth for the next five to ten years?
You should select a platform for the present and five years from now. One aspect that many companies overlook is the ability to scale down as well as up.
If you invest in a dedicated server, you will always pay for the same volume of resources. You may end up wasting money if your needs reduce over time.
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