If some of us needed additional confirmation that Web hosting companies are still in good shape and withstanding the so-called economic tsunami, a May 14th article in Network World serves notice once more.
Providers of shared hosting, co-location, managed services, virtualization and cloud computing are still enjoying increased demand as evidenced by first quarter revenue gains in 2009.
The appeal of cost-cutting measures by outsourcing IT has been the notable driver according to the article. We might add that the proficiency of Web hosting companies in customer service is also a big factor and the ability to add value to existing services regardless of the market conditions weighs heavily also.
We should note that resellers are making inroads in today's marketplace as well. Recently Jonathan Brealey, Managing Director of Heart Internet, a UK web host, said: "With minimal set up costs and few ongoing overheads looking online to generate new revenue or set up a business is a very attractive option in the current climate. Web designers and developers are reselling hosting to their clients more and more and entrepreneurs are looking at more new ways to create businesses quickly and easily. We expect this to continue for the rest of the year."
Research analysts at Gartner expect healthy market growth in the Web hosting sector during the next five years. Revenues are predicted to rise from $14.9B in 2008 to nearly $29B in 2012.
Rolling with the Social Networking Crowd at SES Toronto
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