Hosting vs In-House
Hosting services and hosted dedicated machines generally provide a higher level of both security and reliability than most businesses (especially small businesses) can achieve in-house. Nevertheless you should take precautions. Hosting services do experience disasters and financial problems (as do any business).
- Keep frequent local backups of your hosted database.
- Do not use a fixed IP address or subweb of the hosted domain. Better to use a subdomain of a domain name that you own and set up your DNS to direct to your hosted IP. This allows you to redirect license activations to any machine.
- Buy your domain name from a domain registrar, not a hosting service, and be sure you own the domain name.