I get asked why I’m not going to offer a hosted solution for MagnaCRM. So here are all the reasons that made me decide against offering a hosted solution:

• Technical background. I am a developer, not an administrator. I know how to set up a server but I also understand I would not be up to the task of handling multiple servers, load balancing them, keeping them updated and running.
• Information shortage. While there is a wealth of information (articles / blogs) regarding the process of creating a stand alone app (desktop or web), I can’t say the same for hosted applications.
• Human resources. Although I intend to offer solid support, I have to face the reality: it’s just me. If a client sends an email on Saturday, he may receive an answer on Monday. No big deal. If the DB server would go down on Saturday it would be expected to have it fixed ASAP. By Monday everyone would be rightfully angry and probably looking at the competition.
• Up front costs. You can’t start offering a hosted solution using a shared or even a low end dedicated server. A high end dedicated server is quite expensive and I’m not even sure if one would suffice.
• Pricing. Not sure if this is indeed a problem but I think it as such. A monthly fee is more expensive than a one time fee. Even a low $15 / user / month is $180 / year. As I target small businesses, I believe a $180 one time fee would seem more fair.
• Host it yourself. Just because I won’t host it, it doesn’t mean no-one else will :-) There are hundreds of hosts offering PHP & MySQL, with prices from $5 / month (and maybe even less). I certainly intend to research and suggest some of them, even offering to do the initial setup.