This will save you time and money initially. Many individuals and companies start by placing their site with a hosting service. As the site becomes larger and more complex, you can reassess the situation to see if it makes sense to host the site in-house. You also won't have to hire someone to administer the site, although you might want to retain a consultant part-time to help with ongoing maintenance. If you don't own your own hardware or already have dedicated staff, the difference in costs for your first year can be dramatic.
Prices are more competitive in larger urban areas.
Development and maintenance costs can rise dramatically as the size and complexity of your site increases. If your company already has a robust computer system and an in-house system administrator who has the time to administer the site, running your own server might be a better option. For details on the art and science of webmastering, visit Web Reference . As far as hardware goes, web servers are currently running on old Macintosh SE's and IBM 486's, but for the best performance, get the fastest processor you can afford. Another option is co-location .