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March 2, 2007 (TopHosts NewsBrief) The mass-market web hosting sector consisting of shared, virtualized service and standardized dedicated server hosting, is being changed as more institutional money enters the sector and the competition stiffens, according to Tier 1 Research.
Minneapolis-based Tier1 Research (T1R), notes that this is all taking place amid quickening adoption of broadband and multiple Web presence possibilities for consumers, businesses and everything in between.
“Hosting at the mass-market level continues to experience commoditization pressure as it increasingly becomes a common denominator across a widening scope of technology service providers,” said Philbert Shih, Senior Analyst at T1R and lead author of the report. “We believe that noteworthy changes in market share along with the trends that developed around the 4Q06 period are telling for possible future directions of this marketplace.”
The 36-page report, titled “A 4Q06 Review of the Mass-Market Hosting Sector: Change Continues to Sweep the Sector, but Opportunities Remain” finds:
* Industry consolidation slows as it gears up for 2007: After a busy few quarters, 4Q06 was relatively quiet, but two new equity firms have entered the sector and could begin rolling up mass-market sector assets.
* Internet giants lurking: The Internet giants continue to make moves that potentially threaten the livelihood of mass-market hosters.
* Shared hosting under attack by functional hosters, Part III: Social networking sites are reducing the need for shared hosting accounts, but offer interesting opportunities for hosters.
Contact Lori Larson, Business Development Manager with Tier1 Research, at 239-561-9504 or at lori@tier1research.com to obtain a copy. Visit www.tier1research.com for additional information.
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