[This is the first in a series of three articles to help people understand how internet hosting services work from a business perspective. They’re written for my small business clients over at Prussia.Net as part of a review of our own internet hosting service, but I’m hoping they’ll be of general interest. Enjoy.]

Internet hosting prices are usually explained in terms of the amount of storage space you get and the amount of data transfers (“bandwidth”) per month. However the real cost factor is paying the humans who provide support.
Some technical factors do affect the price of hosting, and I’ll address those tomorrow in Internet hosting: the cost of reliability. But with storage and bandwidth prices always dropping, particularly when set up on a large scale, hosting is now so cheap that Google, say, or WordPress.com and many others can provide free hosting in exchange for advertising. Or in Google’s case with Gmail, monitoring your email to build a profile so they can target advertising at you.
No, the humans are the expensive bit, and the cost can vary dramatically depending on how that support is provided. Here’s just a few of the factors.

