Tier 1's latest report 'Managed Hosting: Market Overview Spring 2008' shows that the sector has experienced tremendous growth in 2007.

April 17, 2008 (TopHosts News Brief)-Analysts at Tier1 Research (T1R) report that the managed Web hosting sector has experienced considerable growth in the past 12 months – more than 30 percent in fact.

Several trends are responsible for the advance, notes T1R, including virtualization, business continuity services and security technologies.

Well-known providers such as Rackspace, SAVVIS, AT&T and Verizon Business have been big winners as a result.

The report’s author, Antonio Piraino, remains bullish on the sector: “There will be continued jockeying and consolidation in the managed services sector as larger storage companies continue to eat up smaller backup-and-recovery service offerings, and encroach more on the territory of managed hosters. Similarly, virtualization, security, compliance, virtual computing and storage, and international expansion will all drive expenditure in the next year.”

Industry trends such as e-discovery services, managed messaging & IM, managed VoIP, managed databases and managed application services such as SAP will continue to have an impact on the sector’s growth, according to T1R.

For additional information on T1R research coverage and services, visit www.t1r.com.