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  1. #1

    Hosting market saturation

    Do you think the hosting market for games and web hosting will have more supply than demand in say 5 years. It seems everyone is doing one or the other and with places like servermatrix it is easy to start up. I'm not complaining about this since i myself am relatively new, but what do you think the future of the market is?

    Do you think it will be harder to make a decent wage in say 5 years than it is now?

  2. #2
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    I think the market will become more difficult for "start-ups" to become successful actually. As the market becomes more educated about the hosting industry, which they will, they will require more qualities of serious businesses.

    If anything, the market will become less saturated and, I might be going to far here but, over-run more more corporate businesses. This is a market with serious potential for growth. The big boys will be playing hard-ball soon enough.

  3. #3
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    I agree with EpicServers. I think the market will become even more competitive and survival of the fittest will take over, a lot of the one man operations may well fold. Also companies with an established reputation and strong client base will grow hugely as more and more people/companies get a site!

    Andrew
    NetHosted - UK based hosting solutions.

  4. #4
    Originally posted by EpicServers
    I think the market will become more difficult for "start-ups" to become successful actually. As the market becomes more educated about the hosting industry, which they will, they will require more qualities of serious businesses.

    If anything, the market will become less saturated and, I might be going to far here but, over-run more more corporate businesses. This is a market with serious potential for growth. The big boys will be playing hard-ball soon enough.
    Yeah, 2 major points. When are people going to realize what a quality web host is and how to tell it and when will there be a Coca Cola of hosting.

    The timeframe for people wising up about their hosting needs seems to be out of sight at the moment. Hundreds of people are signing up for their first hosting provider every day and most have no idea what they need. Yet there are still tons of businesses and people who have not even begun to consider getting a web site. Undoubtedly it will become more common in the future, but I see it taking a lot longer than 5 years before a big change in the market happens, unles...

    Name brand: No one seems to have the name recognition required to monopolize or even dominate the market. I'm interested to see if and when any of the big players will make their push for the hosting market.
    A Collection of Web Hosts
    Small biographies on hosts, uptime reports and some reviews
    Feel free to add your review or add a host that isn't on the list.

  5. #5
    I believe that there is money in it but not that much, anyone looking to make anything willl have to devote serious time and effort to it.

  6. #6
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    I think your on to something, which is one of the reasons I'm still in pursuit in this market. There is still a huge market for this industry and no single hosting solution has taken the market.

    At this point, though, there are a few larger datacenter facilities that have a large portion of the market. I bet anyone on these forums could name 3 right now.

    Also, there are a few hosting companies that I feel are taking over the market as we speak. Their names are branded all over the place and I believe these are the companies that will slowly become the coca-cola's of our industry.

    Also, I belive "Fool me once, shame on you. Fool me twice, shame on me". People will be fooled once or twice in the hosting market, but the people who did not jump on the first tech bandwagon are most likely the skeptics. The hosting market will become more niche based.

  7. #7
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    Aug 2001
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    The honest future of the hosting market is bleak.. the answer will eventually be for those that care.. "in-house" and only specialty hosting will replace the need for it.. (I'm perhaps speaking well past 5 years here..)

    Honestly there is a new generation of the web/networking coming.. don't know what it is.. but the organization of the web is too chaotic and domain name systems make things a mess.. a restructuring is coming as these things always do..

    I read a Scientific American article in 2000 or so about the restructuring of the web.. of course I don't think the scientists succeeded in a solution yet but there idea is valid.. domain names and there value is obscene.. and a better reorganization is needed/called for..

    And also remember for a valid point that the "Internet" was invented by scientist for scientists, the resulting product we have today is the commercialized version (and yes scientists still use it)

    Bottom line in the future.. likely the word "hosting" will take on a new meaning..
    (these predictions are of course based on our current level of technological development and do not take into account nuclear war, bio-terrorism and or the apocalypse, thanks for reading )

  8. #8
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  9. #9
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    Hosting is very saturdated. There are a ton of small players, a few big
    ones.

    It is a buyers market. The customer can choose what they want, no real
    monopoly. Not even 1and1 or Interland come close. But, the good thing is
    99.98% of web hosts arn't worth anything. Poorly designed, overpriced,
    or underpirced, and most are resellers. When it comes down to it there are
    but a few thousand real hosts, and there are millions of customers.

    The market is growing, and will become more saturated. Those who get
    in early made it big, but theres room for money to be made now and later.

    I'm not worried. Just have to evolve with the times to survive.
    ---
    Dan Ushman
    Co-founder & CMO
    SingleHop, Inc.

  10. #10
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  11. #11
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    Ken,

    Agreed... but most new hosts arn't going to have much impact
    on established hosts. A few small examples that DID have an
    impact are 1and1 but they are hardly new, just new to the US.

    I say, business as usual. Yes, the market is saturated but so are
    many other markets: Food being a big one. How many companies
    sell milk? apples? chicken?
    ---
    Dan Ushman
    Co-founder & CMO
    SingleHop, Inc.

  12. #12
    Personally I don't think web hosting in general is saturated at all. In fact more and more small businesses are wanting their own web sites. The only area that I see as saturated in web hosting are the budget markets. Seems like the cheaper the prices are, the more people there are fighting each other over clients.

  13. #13
    Join Date
    Mar 2004
    Location
    Hamilton, Ontario Canada
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    Do you think its too late to start now and still be sucessful? I'm not looking to be the next millionaire, but I would like my business to be financially stable. I am still in the beginning process, and will be a reseller to start, but I have full intensions of moving to co-located as soon as we settle down with some customers. I have a strong business plan written out, and hopefully with a little luck, and a lot of effort, I can still make ends meet and become one of the few thousand decent hosts

  14. #14
    I don't think web hosting is saturated at all. Yes there are lots of Hosting companies out there some good, some bad.

    It's the prices that are becomeing a problem. I under stand that it is a lot cheaper to host a site now then it was just 4 years ago but still some prices are just outrageous and I am not just talking about the $1 unlimited you can have the whole server plans.

    There are companies here in Nashville that are paying up to $60 a month for a 50Meg web site built with a Front Page templete.(built by the provider) I am not talking a site that is using 10's of gigs of transfer, small to medium size companies that may use 1- 2 gig a month and most of that time the site is down or having some sort of problems.
    (I know this for a fact because we have been doing analysis on the market here)

    This is the market that is going to wake up one day and say "Hey why am I paying so much for a service that I can get for 1/4 or 1/2 the price?" I may be wrong but I think that "Brick and morter company" with the big office and on site racks, will be used for more of a data storage company while the Hosting Industry turns to the work from home office supplied by the colo's and dedicated server farms. We all know that it is cheaper to run a business this way then any other ideas.

    So as time changes and consumers get educated with todays market and not the 90's supply and demand prices. Smaller Hosting companies will begain to grow.

    Those that have prices that are not even high enough to pay the bills much less pay a support staff will fade away, leaveing others to educated the comsumer and pick up the pieces.

    So you want to make money in this business then start looking right out side your front door. Talk to that small business man that thinks they can't afford to be like the big guy on the block, let the big guy know you can provide the same service for half the cost.

    There are 500,000 people here in Nashville over the age of 21, 100,000 have some sort of medium to small business going on less the 4% have that business on the internet but over 90% have access to the internet.

    So you tell me is there a market there? Is it saturated?

    *climes of the soap box and goes back to folding brochures*
    A new Beginning for WebMasters
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  15. #15
    Sure it's saturated, but I don't think it's entirely bad. Competition is good, especially when companies like 1&1 do a lot of offline marketing, because they increase the size of the industry by informing consumers that they can have a website easily, and affordably.

    Local companies may not be aware that they can get better service, and better rates online if they look, but that doesn't mean that it isn't saturated- just means they aren't informed yet. So, your local market may not be saturated, but the industry clearly is. There are plenty of budget hosts, quality hosts, reseller companies, etc.
    CEO of SingleHop

  16. #16
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    I think the market's wide open, but it depends where you fish.

    I'm now planning my next hosting venture (forgot how fun this phase is ) and it'll be interesting to see how things pan out.

  17. #17
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    San Francisco, CA
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    check out www.hostcount.com

    May not be too accurate, but it says market is growing faster than the number of players. That does not mean anything really, but it could Also check out netcraft for interesting stats...
    Hostito, Inc. - Web Hosting & Reseller Plans
    http://www.hostito.com
    [email protected] - 1 888 467 8486

  18. #18
    Originally posted by Aussie Bob
    I think the market's wide open, but it depends where you fish.
    Perfect analogy. To say the market is saturated is like saying there are no more fish in the ocean. That's hardly the case, the problem is (as Bob so perfectly described it) is that everyone is trying to fish from the same boat.

    The only boat that is saturated is the budget charter boat that takes large parties into the bay to catch the little bait fish. The Sport Fishing charters that go out into the ocean and catch the real fish (not just the bait fish) can't keep up with all the reservations...

    JamesCC also brings up some excellent points.....

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