Do you guys think that "reselling" is what is truly driving the hosting industry?

I am uncertain. You have a great username, ChowSumDung. I do not like it at all, unless that is really your name. But have a nice day.

Yes, it create more jobs and more ways money can flow :)

Interesting Topic:
I would speculate that most resellers are either, a)some kind of internet company which wants to offer hosting on the side or b)a small business that wants to be the next mchost. I don't think that reselling hurts the industry, because I think there are those who are content to just have one virtual hosting site for their hompage. Others may be content to be just a reseller and may not want to deal with the stress of having a dedicated server. It keeps going on like that until you reach the big guys. As somebody else posted here, "...there are big fish and there are small fish, there are wholesalers and there are retailers...". The webhosting business is not that different from selling oranges or selling cars.

Offtopic:

@TimM:
I've noticed your posts are short, often non-informational comments that don't further the discussion. Are you just looking to increase your postcount and be a WHT guru? Bizarre comments...:confused:

I agree... this is an interesting question.

On the one hand, reselling is great for the end-user who I believe gets the benefit of lower hosting prices through competition and better overall support because of the personal attention that small resellers can give to their clients.

On the other hand, the low up-front costs to enter the reselling business, has made hosting a very competitive business. I guess, like everything else, hosting is making the transition to becoming a commodity like long distance telephone service.

Soon, I expect it to be offered at Costco and other discounters along with the soap and toothpaste.

But just like the local neighborhood hardware store where I live that is still flourishing despite the Home Depot just a mile away, people will always appreciate good service, advice, and support after the sale.

Originally posted by TimM
I am uncertain. You have a great username, ChowSumDung. I do not like it at all, unless that is really your name. But have a nice day.

Wow - I am reading this as saying "ignore me - I'm only going to contribute pointless and irrelevent dribble". Nice one. I will keep an eye out for further insights.

Um anyway, my gut feeling is that reselling can server one (or both) of two roles:

1) A host that is looking to start up and break into the industry, and wishes to start small.

2) A service provider that is looking to bundle in web hosting into their overall value added business - such as web designers who wish to be able to provide hosting to their clients.

Oh, yeah, and have a nice day :stickout

As long as the reselling company's are reliable, and live up to their name, then I think it is highly possible that reselling could be driving the hosting industry.

I doubt there are thousands of hosting company's spending thousands every day to set themselves up as hosts, but I would place money on there being thousands of resellers coming online!