Mass market Web hosting is entering a “critical period of transformation” according to an intriguing report by independent research firm Tier1 Research.

The most recent study, written by Research Analyst Philbert Shih, examines notable developments occurring in the first quarter of 2007. Shih spoke to TopHosts about his findings and says Mass market hosting, better known as shared, virtualized and standardized dedicated services, is heading in new and exciting directions – thanks to the changing landscape of business competition.

“There’s just so much happening around the (hosting) sector. Mergers and acquisitions aren’t even surprising anymore and the many partnerships hosters are getting into… is creating such a volume of activity and affecting the industry in many ways,” Shih said.

Shih explained that the reason behind all the activity, especially the increasing partnership announcements, is that companies simply need more to sell. The Web hosting sector has become so fiercely competitive that providers can no longer get by on just offering one or two services. To remain successful these days, Shih says Web hosts need to diversify and move beyond the traditional, one-dimensional domain name and hosting offers, and become that one-stop shop consumers are looking for.

Mike Chadwick, Vice President of Technology for leading Web host and domain registrar Go Daddy, agrees with Shih’s view of industry success. In Tier1’s report, Go Daddy is recognized as a key company and a leading private hosting firm. Chadwick says Go Daddy’s success is primarily due to their very wide portfolio of services, from domain registration, to SSL certification, to dedicated hosting. He says that giving customers all they need under one roof gives them a huge edge in the marketplace and enables them to grow exponentially every year.

“We pioneered the one-stop-shop for Web presence… and built out a wealth of other products,” Chadwick said. “Our goal is to be a place where a small business or individual can come to and get their start and then grow… because people want to stick with one vendor as long as possible.”

Another component affecting competition, out of the Tier1 report, comes from ongoing activity from Internet behemoths like Google and Microsoft. Shih explained that although larger forces like Google aren’t exactly Web hosting providers, their cheap services and free ad-supported hosting offers are becoming major factors in the mass market hosting sector. He thinks that it’s definitely a trend companies should consider and watch out for.

Galina Ladyka, Development Supervisor for up-and-coming Web host FastNext, thinks such hosting trends are pretty predictable and that competition from larger forces is to be expected but not feared. “ The company’s size doesn’t really matter. (If you) have experienced and skilled professionals hired, there is no need to be a giant company or follow some aggressive expansion,” Ladyka said.

Ladyka says providing reliable and reputable hosting to customers is the best game plan for success, even as larger players enter the fray. FastNext remains focused on their mission to offer affordable shared and virtual private server (VPS) plans, along with profitable reseller options.

Chadwick of Go Daddy also believes that hosting initiatives by larger forces such as Google won’t hurt their business, as long as they remain focused on customers. As a Web host, Chadwick says the ultimate goal is to supply the best customer support possible, and that’s simply not something Google or Microsoft can learn over night.