Hosting, in or out?

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From: Holz <holz@xxxxxxxxxx>
Date: Sat, 04 Oct 2008 15:08:50 -0700

Our client has an SBS 2003 with a SQL server installed, 40 users, the proprietary SQL based application is the core of the business.
A new requirement calls for a report only server, one that will obtain the data from the SQL server and allow outside customers to pull their own status reports. The server will run ASP, .NET framework 3.5, all built with Visual Studio.
I suggested we host it outside on their ISP (he offers dedicated Windows hosting) rather then inside, their developer insists on inside hosting, i guess for ease of development. There is a good Cisco perimeter, however my concern is bandwidth and overall security.
I would like to hear more opinions.

TIA
--
Holz
.

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