But using shared servers can generate even bigger cost savings. Increasingly, businesses are opting to buy hosted applications that reside on a server shared by business clients. Plus, they don't pay for upgrades because the ASP can quickly perform a single upgrade for multiple clients. In addition, some ASPs say they can expand a client's data capacity more rapidly when it's on a shared server. But there are some downsides.
Shared servers can jeopardize security if one client gains access to another's data.
In addition, server uptime can be affected when troubleshooting one client's application causes the entire machine to go offline. And even some who offer shared servers as an option admit that if one client on the box has a huge spike in traffic, it will slow the performance of other clients' applications. Still, demand for lower-cost shared servers has prompted several ASPs to offer the option. Breakaway Solutions Inc. offers a range of services, including custom application development, Web hosting, and rented applications. Customers can select a shared or dedicated server.