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This seems like a great solution to guarantee 100% uptime.
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The way it functions is to check regularly if the "official" server is down, and if it is, "redirect traffic" to the backup server. This means that there must be downtime for the system to kick in, so 100% uptime is not achievable. To complicate matters, some ISPs may disregard some of your DNS instructions, and still point people to the "official" server. Also, if the downtime is the result of very heavy traffic, pointing visitors to another similar server will not take care of the issue, and will result in downtime yet again. Keeping the data consistent on the two servers can be quite a bit of a challenge if databases are involved.
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My hesitation here is that I know almost nothing about servers and most of what I've seen requires you to basically be your own server administrator. That's more than I want to take on.
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There are fully managed VPSes out there, where the host would take care of server administration tasks for you. Make sure that the service is proactive, rather than the kind that waits for your requests to do anything.
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Another option I found was a managed dedicated server. This seemed like a good solution but is cost-prohibitive ($400/month).
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There are decent and yet lower priced fully managed dedicated servers out there. The configuration matters a lot, and if your sites were doing fine in a shared hosting environment, you won't be needed a very powerful server.
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