During the early stages of the Internet, choosing a web host from the US seemed like a matter of common sense. But given the fact that there are far more options available presently, the decision to use a US based web host is no longer that obvious. Ten years ago, many people didn’t appear to take the local hosting market all that seriously. For example, if you were from Germany, you’d still go with a host from the U.S., and the same principle would apply if you were from Japan, or anywhere else in the world.

The U.S. Web Hosting Market
In order to understand the possibilities when it comes to hosting your website, it’s important to first look at the US hosting industry and how it got to where it is today. The Internet practically began in the US, so the people who say that there was a strategic advantage involved are correct. In addition to this data infrastructure, the US was the biggest market as well as the earliest adopter of the Internet and ecommerce.

There are several different benefits associated with hosting in the US. First off, hosting is cheap and competition fierce. Many of the biggest hosting companies are located in the US and they’re willing to do whatever it takes to win you over as a customer. The customer ultimately has the most to gain, since the price/performance ratio that US hosts bring to the table is very impressive. In short, web hosting in the US is cheap and there are plenty of options to choose from. The US is still at the center of the Internet universe, so we’re automatically talking about the most lucrative market worldwide.

Those who want to make money online usually start by targeting the US market. This was true back when the web was still in its infancy and it is definitely still true today. The vast majority of people do not even consider non-US options, simply because US-based companies have such attractive offerings. Currently, it’s takes a good bit of effort to find a cheaper price on hosting or get better service outside of the US. However this appears to be changing for a several reasons.

International Web Hosting
Over the last several years, international bandwidth has grown substantially and with this growth, prices have gone down considerably. Companies have gained more hosting experience and know how to deliver a product comparable to or even better than what you can get in the US. Datacenters have sprouted up throughout Asia and European datacenters are also starting to represent a threat to the US domination. While these developments have set the stage for an exciting beginning as far as the international web hosting scene is concerned, one factor stands out above all the rest.

A few years ago, a small earthquake off the coast of Taiwan cut the data cable connecting Asia with the US. All of a sudden, it became difficult for Asians to access US servers. Companies that had their websites hosted on servers located in Asia were less affected by the downtime and this made it quite clear that businesses should choose servers that are closer to their customers. Other outages have occurred on data cables connecting the Middle East with Europe. Whenever an outage occurs, those who host far from their customers have been impacted in a negative manner.
With plenty of impetus to make a change and with an infrastructure in place to make change possible, there are a great deal of companies that have begun considering the possibility of hosting their websites in other countries. Many companies have been looking into the reality of whether it really matters where their website is located. While the world may be getting smaller, it still could be important where you host your website. Finding out where to host can be a challenging task.

The benefits and negatives surrounding international hosting need to be considered first.
When looking into international hosting options, it helps to understand a few things that make hosting in other countries different than hosting in the US. One of the big issues is represented by international bandwidth. Some countries may have very limited international bandwidth. This can cut two ways. If your server is outside of a certain country, your visitors from that country can sometimes experience “slowdowns.” If you try to do things differently and choose a local server, your visitors from other countries may be the ones who experience a significant slowdown. Before choosing a country to host in, it is a good idea to understand something about the architecture of the Internet in order to see where the international data cables run. Knowing about where and how data is transferred can be useful in determining whether it is optimal for your particular web traffic load and visitor demographics.

For example, Singapore is a hub in Asia. From Singapore, there are lines running to and from Europe, Australia and North America. This could impact the types of traffic that will flow to the website, where it comes from and at what times. That data could be useful in determining how to measure the possibility of success for an online business.

Location, Location, Location
With that in mind, it’s time to look at some of the benefits that come with hosting internationally. One of the biggest benefits, if you haven’t guessed it already, is being closer to potential customers. If you are running a website that caters to the needs of an Asian audience, you’d do well to choose a web host with servers in Asia. This way, your visitors are able to access your website without delays and have a superior experience. This is a win-win for you as well as your visitors.

Another potential benefit for a company that wishes to expand sales into a foreign market is that working with a local host in that market may provide you with a better localization resource and support.

Hosting Legalities
One of the understated benefits is related to legal issues. Certain types of hosting might not be completely legal in some countries but might be perfectly acceptable in other countries. By doing some simple jurisdictional shopping, you can choose the host that represents the best solution for your specific needs. Sometimes, the best solution is represented by an international host, especially if you are running a site that promotes a product or service that doesn’t comply with US laws. Judicious shopping for international hosting can be just what you need to make your business succeed when it otherwise couldn’t even exist.

However, beware that jurisdictional laws can cut both ways. While it can be a benefit, it can also represent something negative. Many countries do not have the same respect for freedom and free speech as others. By hosting in a country, you may be forced to follow the harsh legal rules imposed by them. This risk could range from none at all to the possibility of imprisonment, depending on the site that you’re running. For instance, in China there are stringent policies in place that block many websites from displaying its content – in a vast array of situations. There doesn’t seem to be any particular protocol from which to figure out what kinds of websites may be either shut down or simply not able to display their content. That is the nature of the Chinese government system when it comes to the Internet.

Another issue to consider when it comes to hosting internationally is the cost involved with respect to the time it could take to address certain legal and security issues that many business owners routinely take for granted. For example, many companies may not be in a position to provide the customary guarantees or assurances that are required in order to entrust them with e-commerce. Every country has its own specific laws, and some have yet to even begin to enact web or Internet fraud, e-commerce piracy, or other kinds of laws to protect clients. To avoid these issues requires a thorough “due diligence” investigation before signing a contract.

Hosting Choice Considerations
Aside from the costs associated with international hosting, the lack of hosting choices makes many webmasters think twice before moving away from US-based hosting providers. There aren’t a lot of web hosting companies available outside of Europe and the US. A lot of times, you’ll be limited to choosing from just a handful of web hosting companies. In addition, their services might not even match up to your requirements.

As can be seen, there are a lot of issues to take into consideration when you are trying to find out where you should host your site and if it even matters where you host it. The more you look into the issue, the more you’ll understand that there will never be a “one size fits all” answer. Below are some examples of why properly choosing the hosting location of your website can be so important.

If you are running a political site directly related to the “internal specifics” of a country that restricts free speech, it’s usually a good idea not to choose a hosting provider from the country in question. For example, Thailand has very strict lese majeste laws and if your website touches issues related to the Thai Royal family, it will probably be banned and the server confiscated. Another example might be a website about persecuted religious groups that are normally banned in China. It won’t take long for the website to be banned or the server taken down in China, while it would likely never be an issue in the US.

If you are running a website that sells local products to a UK audience or even throughout Europe, then it makes sense to have your website hosted in the UK or Europe.

Hopefully as you take a look at these examples, what it takes to find the best place to host your website is revealed. There are definitely more options these days than a few years ago. And there can be several definite benefits associated with choosing a web hosting company outside of the US.

You need to carefully analyze both the pros and the cons of where your web hosting company should be located. It’s more of an art than an exact science, since there will rarely be an obvious answer. If you’re targeting people from Thailand, you’d think that it makes sense to choose a local web hosting company but that’s not always the case. Handling the legal and jurisdictional issues could be cost prohibitive enough so that it off-shore hosting wouldn’t be worth the effort.
On the other hand, the hosting location of a company website, even in cyberspace, may help determine just how the website can offer a positive experience for users, and attract the kind of visitors that are best suited to your business. That could be the key to a positive bottom line.

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