Managed server hosting is the traditional method for businesses and individuals to purchase server hosting services. Businesses will often purchase managed server resell web hosting in order to utilize computer services such as web site hosting, remote backup for documents and applications, and database hosting. Individuals rarely purchase these services anymore, as their needs are more likely to require less resources than a full physical server.

The standard managed server hosting business will purchase a dedicated physical server and rent use of it to a single client. The client pays the hosting company for keeping the server online and operating smoothly, and the cost to the client is often significantly less than hiring dedicated resources to manage their own internal servers. Often, clients have needs that are too small to justify a full-time resource.

Newer models of managed server hosting include virtual server hosting and share server hosting. While it is not traditional for the term to refer to managing virtual machines or shared environments, the client requirements and technical expertise necessary to fulfill client needs are largely identical. The chief difference between traditional managed dedicated server hosting and the other two are largely a specification of what services are split out separately.

Managed virtual server hosting involves having a host perform system maintenance on client virtual servers. Multiple virtual servers can run on the same physical server box, and clients pay the host to manage both the physical box and the virtual machine being run by it. Such services are especially inexpensive because of the ability to consolidate managerial tasks from multiple clients onto a single set of hardware.

Managed server hosting for shared services is another traditional model wherein the host manages a single server for multiple clients, such as running multiple web servers. A host can run hundreds of web sites from a single physical server and perform all of the physical maintenance for hundres of clients, making it an especially cheap option for clients.

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