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The Cost of Web Hosting

As reported on earlier this month, “when deciding whether Google should spend millions or even billions of dollars in acquiring a new company, its chief executive, Larry Page, asks whether the acquisition passes the toothbrush test: Is it something you will use once or twice a day, and does it make your life better?”


The author continues to say, “The esoteric criterion shuns traditional measures of valuing a company like earnings, discounted cash flow or even sales. Instead, Mr. Page is looking for usefulness above profitability, and long-term potential over near-term financial gain.”


While most businesses aren’t making decisions on the same scale as Google, the toothbrush test is an important way to gauge making improvements to your company’s own operation—whether it’s adding services to offer clients, or making changes in your I.T. space. It also translates to how you make improvements to your website.


In today’s economy, the website is often the first point of contact for your customer. In the name of cost-effectiveness, many organizations have begun to lease their website, utilizing a proprietary Content Management System (CMS). It may seem a good idea in the moment because the initial cost may be less and the site management is left to someone else.  If the company then doesn't like the hosting, or they want to go somewhere else, they can't take the website with them.


When using a proprietary CMS, the website is developed at a competitive price but the website will not run unless it can reference that specific CMS. Additionally, most proprietary CMS systems will have limitations to design and features that could prevent an online business from growing. Should a company want to move to another vendor, or make changes to the website, but prefer to have someone else do it, their hands are tied—it cannot be done unless the site is completely reinvented, creating more expense.


In the long run, leasing your website doesn’t pass the toothbrush test. Yes, it’s a useful, short-term decision; however, on the flip side, it doesn’t improve a company’s bottom line, instead it creates dependence on an outside vendor that will eventually get in the way of business growth.


Be sure to weigh all the options when considering upgrades to your website. To learn more about web hosting, and a wide array of other services and products, visit or follow Kinetik I.T. on Facebook, LinkedIn or Twitter.


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