An Overcrowded Web Hosting Marketplace

Many businesses has made their decision to enter the web hosting market by forming hosting companies or by adding web hosting services to their offerings. Only for the last few days I’ve seen that companies such as Stellar Image, Tugboat Enterprises announced their own web hosting services.

Notwithstanding the growing demands of web hosting related services and products from consumers and businesses the shared web hosting offer seem to keep going down and that makes many of the smaller companies to sell.

Shared Hosting

I can suggest anyone who is looking for entrance in Shared web hosting market to use a consultant service that would help them to prepare at least 2 different draft versions for the business including establishing a presence within the local communitites. The online marketing is not working the way it used to a few years ago and web host get less customers from online advertising. will pay attention on this issue in a separete article.

The “new web hosts” which sell their web hosting services within the range $2 – $5 per month are looking to make profit by offering a wide range of value added services and products such as SSL certificates, new domain names such as .EU, .Mobi and etc. as well as to earn from publishing activities.

Enterprice Web Hosting

At the same time all the reviews and long term analysis related to web hosting market and its industry level in particular show that the dedicated, managed hosting, data center, and infrastructure business will continue to grow.

The 2006 survey “Magic Quadrant for U.S. Managed and Professional Network Service Providers” conducted by Gartner, says that by 2010, 60% of the enterprises will outsource the management and the operation of part, or all of their corporate networks. That means an increase with 30% within the next 3 years.

The process of bringing large investment in Enterprice Hosting continues. The recent news came from DataPipe, a managed web hosting company that announced it secured $12 million investment, that will help it to build additional data center space.

According to aanalitical web site Netcraft, “The first half of 2006 saw a flurry of acquisitions involving major hosts and domain registrars, and investment bankers say the industry is also attracting private funding from investors wanting to participate in the industry’s growth.

The web analysts published a report in July that said that web hosting mergers and acqusitions “accelerated in the first half of 2006, as investment capital flowed into the sector, which just a few years ago was scorned by Wall Street”.

Daw Web Hosting Blog paid attention in  in articles Selling Web Hosting Business For Cents, and Good Omens For American Managed And Dedicated Hosting Market publish within the last two months.

About the Author

Dimitar A.
Dimitar is founder of the global Cloud & Infrastructure Hosting provider & European Cloud IaaS company RAX. He has two Decades-long experience in the web hosting industry and in building and managing Cloud computing infrastructure and IT ecosystems. Dimitar is also political scientist who has published books "The New American State" and "The New Polity". "The New American State" is one of the best current political books. It is focused on the change of the American political process. It offers a perspective on how the fourth industrial revolution, also called the Digital Revolution and Industry 4.0, marks the beginning of an era of deterritorialization.