Traditionally you have had to get server resources that can handle your peak loads, even though you may see peak load only one month out of the year.

Wouldn't it be great if you can get computing power that fits your need during normal loads and still be able to spin up additional resources as needed for peak load then spin them back down? Granted, not all server loads can be dynamically scaled but most can. With hosting options and per minute billing from hosting providers, companies are now beginning to use servers as a utility, just like they use electricity. They spin up new servers to increase computing power then take servers offline as the load decreases, striking a perfect balance between cost and computing power.

Another advantage to server resources at a data center is that you can enjoy the huge amounts of bandwidth available instead of clogging the relatively tiny internet line coming into your company for internet connectivity.

Combine this with other hosted services like storage, content distribution and torrent seeding, you can really relieve the load on your in-house servers and connectivity pipes while still only paying a fraction of the cost of getting new servers/storage.