Dedicated Server Contracts:
watch out with fine print

When you choose a dedicated server hosting plan you are required to review and agree with a contract. As this contract stipulates exactly what your hosting provider will offer you, it must be read carefully in order to avoid any problems in case the service they provide is not what you were expecting.

Keep an eye on minimum time commitment

A web hosting provider must explicitly mention any minimum time commitment. If you are required to use their services for a minimum period of time, it should not exceed two or three months, which is a reasonable time.

However, try to find those web hosting companies whose contract allows you to cancel the service whenever you want because these companies usually have in fact less cancellations than others. Be aware that most companies will require you to notify the cancellation of service forehand, typically 30 days before the next date of invoicing.

Be as specific as you can

A dedicated server contract should be specific enough to adequately describe the features you are paying for. Any hardware you requested should be listed on the contract, as well as software packages, hosting administration control panels, operating system and any other application that is installed by default.

Optional software packages that may be installed later for free at your request must be specified on the dedicated server contract too, in order to avoid hidden fees or costs.
Keep an eye opened for a hardware replacement clause: the contract must explicitly say that the web hosting company will replace any part that is faulty or defective, or if it fails due to reasons not related with your actions, without charging extra money.

Watch out for alerts and warnings

A good web hosting service provider must clearly state in the contract the kind of monitoring it will perform on your dedicated server. Look for those companies that carefully list what will they monitor and how will they notify you. Most hosting providers will perform constant basic monitoring free of charge to determine if your dedicated server is available, up and running, and notify you via an e-mail warning message or sms text message in case it isn’t.

If you need more details on how your dedicated server is working, you should consider purchasing a more complete monitoring package, which is often sold separately. If you decide to do so, be sure it is stated in the dedicated server contract.

Look for a high minimum guaranteed uptime

Choose between those providers whose contracts specify a good uptime. You should look for a guaranteed 99.7 percent minimum uptime or more.

Also, look how will they compensate you in case they cannot meet this minimum, as some companies will refund an amount of money equivalent to the fee charged for the time your dedicated server was down; other more reputable hosting providers will refund one day’s fee or more per hour of service interruption.

In either case, have in mind that the compensation could be very low compared with your potential business loss provoked by a dedicated server down.  Think about aborted sales, service unavailable, frustrated customers and the inevitable detriment of your brand. This argument can be very useful when negotiating the compensation clause.

Look for regular back-ups

The dedicated server contract must specify how frequent data back-ups will be, and what information will it include. Some web hosting providers will back up only your site’s database, others will back up the entire contents of your dedicated server’s hard disk.

As with all contracts, be sure to read it several times until you fully understand your rights and obligations. In case there is something you do not understand completely, or that seems to be made difficult to read on purpose, don’t be afraid to ask for clarification. It’s your right as a customer and their obligation as web hosting providers.

Good luck with your dedicated server contract negotiation!

Leo S. Strouth
Dedicated Server Advisor Contributor