In the way all businesses have advantages and disadvantages of its own, a web hosting company has its own advantages and disadvantages as well.
The most important advantage is the vast scope of this line. Since Web hosting is something that is required by us in every field, be it business, education or entertainment, the scope of these companies are vast. Their services will be required by all and for everything. Also there are no geographical constraints as well between the company and its customers. It may be having clients anywhere in the world. This is another advantage. If the company is able to do good business and provide good service it can gain more and more clients and will certainly have a very steady flow of income.
However these web hosting companies have some disadvantages as well. They have to deal with a few difficulties. Firstly, this type of business needs a lot of initial investment and there is a lot of hardware and infrastructure that needs to be set up which can be quite expensive. Hardware expenses, software expenses, infrastructure expenses, and advertising expenses have to be borne by the owner.
This type of business deals with a lot of technical know-how and expertise and sometimes it may be difficult to find them.
The huge competition in this field is also a disadvantage as many companies are offering the same service to customers, maybe of better quality and in cheaper rates. It becomes difficult to please the customers.
Another problem may be that the owner is expected to provide twenty four hour technical support to the customers as he has to say that the server is always up and running. The amount of time required to oversee the business can thus be termed as a disadvantage.