Cloud server and hosting pricing in Canada, explained line by line

For a simple website with modest traffic, shared or managed website hosting usually has the lowest monthly cost because the provider spreads servers and administration across many customers. A VPS costs more but gives you control. Public cloud is rarely cheapest for a small steady site, but it fits variable workloads and applications that need to scale. Compare the total monthly lines, including backups, egress and your own time, not only the headline price.

Often yes. Non-resident suppliers of digital services to Canadian consumers must register under the simplified GST/HST regime and charge tax, and many large providers register normally. A GST/HST-registered business should give the supplier its registration number: tax charged by a simplified-regime registrant generally cannot be claimed as an input tax credit. If no tax is charged and you use the service exclusively in commercial activities, self-assessment is generally not required. Confirm with the CRA or your accountant.

For most private-sector businesses, no law requires it. PIPEDA allows processing outside Canada, but you stay accountable, must protect the data by contract and should tell people their information may be processed abroad. Quebec's Law 25 requires a privacy impact assessment and a written agreement before personal information is communicated outside Quebec. Some public bodies, regulated sectors and contracts impose stricter location rules, so check yours.

Egress is data leaving the provider's network, for example to your website visitors, to your office or to another cloud. Public cloud providers usually charge per gigabyte above a free allowance, while inbound data is usually free. Video, large downloads, backups copied off-site and migrations out of a provider can make egress a significant line.

They can be, for a baseline workload that will run for the whole term. You commit to one or three years in exchange for a lower rate than on demand. Work out the break-even point: if you would retire or shrink the server before then, on demand is cheaper. Start with on demand, measure a few months of real use, then commit only to the steady part.

Many shared and website hosting plans advertise an introductory price for the first term and renew at a higher regular price. Read the renewal price before buying, put the renewal date in your calendar and compare the cost of renewing with the cost of moving. Under the Competition Act, an advertised price that cannot be obtained because of fixed obligatory fees is considered misleading; concerns can be reported to the Competition Bureau.

Hosting and cloud subscriptions used to earn business income are generally deductible operating expenses. Servers you buy outright are capital property and are written off through capital cost allowance instead. Ask your accountant how this applies to your situation, especially for prepaid multi-year plans.