Originally Posted by RecoveringYuppy
I've worked with a lot of companies that use to host their own servers. But many have stopped because it is cheaper in so many ways to let the big boys do it for them. That allows them to focus on their own business as opposed to also manage an IT staff and equipment. There are the servers, the electrical power, the air conditioning, the racking, the servers and disk arrays, the routers and switches, the backup equipment. And what if it goes down? These companies don't need to fret about buying Sun v HP or Cisco or F5, etc etc etc. They just ask for a specific amount of bandwidth and processing power and maybe a few other services.
That doesn't make it right for every company. But it makes a lot of sense for many.