Managed hosting is a type of web hosting service that is used by many small to medium sized businesses at the moment. This kind of hosting is also often referred to as dedicated hosting or a dedicated server system. Here, a company, for example, will not house and manage their own web server in house but will contract out their needs in this area to a specific type of hosting company.
With managed hosting you will generally pay your hosting company to run an individual server on your behalf. Unlike with other hosting services this server will not generally be shared with any other individual or company but will be solely set up to work on your behalf. The hosting company will use your dedicated server to run your website and related functions such as your email systems. It may also offer you other services such as software management and server management and administration.
This kind of hosting solution costs more than other forms of virtual hosting but has its own advantages. For example, you will not have to share a server with anyone else and you also have more say in the hardware, operating system and software that is used on your behalf. You also do not need to incur the costs of employing your own staff or buying your own server with this kind of hosting solution.