Hello:

I had a client inquiry today about hosting services for his shared hosting account. He simply stated he wanted to go from a kidie host with their mom's DSL connection to a real host.

Then proceded to ask me for my location, datacenter specs, etc. I explained that we operated out of 4 datacenters; however, we did not own our own DC because it doesn't make sense and its not benificial to our customers. And, providing top notch service to our potiental clients/future clients was more important. Then he proceded to write me off because I did not own a DC.

Since when was someone looking for $10.00 hosting, live support, and telephone support in need of a DC to provide shared hosting services for under $10.00. I know, most DC will not even touch shared hosting clients anymore and are strictly dedicated servers or colocation.

What do you think about operating many servers, out of several locations, and then being wrote off by a potiental client because it wasn't good enough you own your own equipment; but, did not own the datacenter?

I have no clue what he expected. It makes me laugh. Plus there are people that run it out of a room in there house so I wonder. As long as it is in a decent data center that is what matters to me. I would prefer to be in an accual on but as far as some one hosting on dedicated servers so what everyone does that. The companies that have data centers still keep the hosting on servers lol.

That is my thought on it. I paid my dues by being in the industry for 5 years (3 years web design). I spent my time and money building a company along with a national ad campaign. I provide toll free and instant messenger support. And, I have Dual Xeon and Opteron's running 100% uptime. What more can you ask?

. . . What do you think about operating many servers, out of several locations, and then being wrote off by a potiental client because it wasn't good enough you own your own equipment; but, did not own the datacenter?
Just thank them for their business and wish them well as they go on their way. Most hosting clients don't have a clue about the hosting industry, and have some pretty wierd preconceived ideas based around uneducated presumptions.

Just thank them for their business and wish them well as they go on their way. Most hosting clients don't have a clue about the hosting industry, and have some pretty wierd preconceived ideas based around uneducated presumptions.

Isn't that the truth.

Maybe you could have explained why not owning your datacentre is beneficial - someone else looks after your top-end hardware and network connectivity, while you look after the customer?

"We operate out of 4 datacenters with our own equipment. We do not own them.
As far as, our head quarters go we are in the middle of moving offices so they are not available; however, below is our largest clients e-mail address who has been working with us for 1.5 years who leaves his business to us on a daily basis with no issues and no complaints.

.....

Sometimes great service and a great company is not about how much you own or how large your datacenter is. It's about the dream and the overall priority customer's are. There is no reason for our customers to have $x,xxx.xx worth of billables each month and have us perform all services for him because we own our own DC. It's because our tech/sales support is flawless.

If you have any further questions please let me know, I always have time for my clients or potential clients. If you would like to reach me directly please call x.xxx.xxx.xxxx ext. x or like I had previous stated I'll be available for approximately another hour on MSN, AIM, or Yahoo if you would like to chat about your needs."

If this isn't explaining that our customers take #1 priority and me providing instant responses to his e-mail on a Saturday night, then I do not know what will. And, I even provided a reference of our current customers to him so he could check us out. That is where the biggest slap in the face. I do apologize; however, my cable connection is run into my home and the fact that I would even take the time to e-mail someone on a Saturday night/Sunday morning when I should be spending time with my fianance just blows me out of the water.

Pretty unbelievable uh. I wouldn't worry to much about it. People really don't have a clue about the hosting industry and they either seem to fall for the massive oversellers with cheap prices (actually believeing they need 1000GB''s space) to now thinking if you don't own your own data center your no good. I think people hear one little rumor and stick with it. I guess now people want 1000GB space, 10,000GB's bandwidth, want you to own and operate your own 100 million dollar datacenter and provide the best service and support for 2 bucks/month.

You can't win them all over. Most likely, he's the kind of customer you wouldn't want anyway because it looks like he has unreal expectations for his $10 per month.

--Tina

Got another one this morning. The guy is running an adult enterianment site. That's fine other then the fact the primary datacenter will not allow for adult websites whether you are dedicated or colocated so I cannot even host his site on our premium network.

I did look at the value servers we have available on Cogent + 3 other providers and when I provided him a price of $15.00/mo., Space: 15 GB, and Bandwidth unmetered. As soon as, he seen Cogent he was like I am not paying $15.00/month for that bandwidth.

Again, you win some...you lose some. Its not a big deal, really. ;)

--Tina

Well I don't think this reflects on where the industry is going,
As people have their own ideas about what they should get for their $5,$10,$15 dollars a month.

But I think we will see slightly more " educated " customers, Or I would hope we would, Even if they just hang out at WHT a bit, they would learn alot.

The only thing that could " ruin " things is MS providing hosting included in Windows, So you can upload and get your hosting with Vista Premium and/or Ultimate.

It would not be the end, but it would take a chunk out the market for shared hosting.

I also think that soon shared hosting won't exsist, it will either all be done by Grid or by some sort of VPS spin off.

Just my 2 cents.

We spend so much time bashing each other they might think all hosts are backstabbing savages.

I'd pay the moron $10 NOT to sign up.

Again, you win some...you lose some. Its not a big deal, really. ;)
Yeah, no biggie. It all evens out in the wash. :)

I would say you are better off without them :)

Heh, what is that customer interested in - signing up for hosting a website or disecting the business plan? ;)

I would say you are better off without them :)


I would second that.

You pay for preformance.
Serious clients know this.

The ones that don't will not be the ones providing margin so are not worth the problems. :-p my $0.02

There is a big market of customers who are very happy to pay lots of money ($50 and higher) for a basic shared web hosting account.

No, they are not easy to find... but they are very easy to keep happy if you have truly personal service and reliable servers.

To answer the OP's question of "where is the industry going?"... I think that it is important to define what you mean by "industry".

The "industry" is not a single group of people.

The hosting "industry" is made up of many groups of people. (ie: There are many different "markets" in the same hosting industry.)

You must define your own market, and then aggresively pursue it. If you pursue the low-cost budget-web-host market or group of people... then you will find it very very difficult to compete. This market is dominated by huge companies such as 1and1, etc. This is the market that targets random people on the internet who search google for "low cost hosting for $1" and offer them 1000gb disk/bw for $1 per year.

However, if you choose to pursue the upper-end market, then it is much different. You must adjust your marketing strategy A LOT, because this type of customer requires much different method of selling. These people are not interested in disk space or bandwidth or other "geek stuff". This market segment is interested only in knowing that their website is going to stay up and running, and that their email is going to always be working, and that you are only a phone call away if they have any questions or need help. Price is a secondary concern for them.

If that market is the "industry" that you are selling to, then I believe this market is very large and is becoming larger all the time as more and more businesses experience major problems with the low-cost hosting providers and realize that paying $50/month for a basic account is a good deal, when their business relies on solid services.

I hope this helps.

just don`t pay attention to such issue, as he is only one of hundreds of potential customers, those who can afford own data center will most likely provide poor support and loose individual approach to customer, thus it depends