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  1. #1
    Join Date
    Mar 2004
    Posts
    1,301

    Lightbulb Some Web Hosting Industry Projections

    Forrester Research predicts the market for managed hosting services will grow from approximately $6 billion in 2002 to over $30 billion in 2006.

    Many industry participants estimate that approximately 65 per cent of the client base of a typical higher-tier SME Web host is provided through resellers

    E-commerce can be intimidating for some small businesses, but the numbers show it's worth the effort: e-commerce revenues are expected to expand nearly 45% to $133 billion dollars by the year 2005.

    The Canadian Web hosting market will reach C$2.5 billion by 2006 with managed infrastructure providers grabbing 53% of the market. 57% of large Canadian firms plan to use Web hosting. In 2003, 83% of firms that outsource plan to buy managed Web hosting services. Application hosting will surpass C$770 million in 2006. (Source: Forrester Research)

    Service level agreements (SLAs) by hosting service providers (and the associated pricing for those SLAs) will prove to be the single biggest differentiator in this market in 2004. (Source: Forrester Research)


    If anyone has statistics re: hosting, please pass them to me! will appreciate it
    "Web Hosting is not just about selling space, it is about facilitating customers needs with your plans and supporting the customer for a long lasting mutually beneficial relationship."- Yaser

  2. #2
    Join Date
    Apr 2002
    Location
    West Yorkshire
    Posts
    1,357
    Interesting statistics!
    -- Matthew

  3. #3
    Join Date
    Mar 2004
    Posts
    1,301
    So there still is time for catching the bandwagon , sorry for repeating but any statistics or sources of internet related stats pls share
    "Web Hosting is not just about selling space, it is about facilitating customers needs with your plans and supporting the customer for a long lasting mutually beneficial relationship."- Yaser

  4. #4
    Join Date
    Apr 2003
    Location
    Portland, OR, USA
    Posts
    479
    Yaser,

    Thank you for that information i am actually looking for information of this sort at this current time so if anyone else has more information on this topic please feel free to post it. It would be greatly appriciated.

    Thanks
    - James

  5. #5
    Join Date
    Jul 2003
    Posts
    191
    hmm....in this case we should go and snatch a niche market

  6. #6
    Join Date
    Dec 2002
    Location
    Ferenginar
    Posts
    4,156
    Local small business web hosting is where the $ is at (in my experience)

  7. #7
    Join Date
    Mar 2003
    Location
    Leeds. UK.
    Posts
    460
    Originally posted by RossMAN
    Local small business web hosting is where the $ is at (in my experience)
    Hmmm - was actually the market i am looking at targetting! But i just am not sure on prices!

  8. #8
    Join Date
    Jan 2004
    Location
    Singapore
    Posts
    1,032
    Sorry some critism here from me

    $6 billion per year with 10, 000 companies
    $30 billion a year with 10 million competitors..
    ( this is just a comment not stats :p )

    But personally I feel that you can't just start out jumping into a business, you need to plan properly.... Because there is competition and saturation in any business. Do it right and get the cash, do it wrong and lose it.
    -=- GQ Hong -=-
    GalacNet WebMaster

  9. #9
    Join Date
    Mar 2004
    Posts
    1,301
    Everyone who starts will need to pick a niche that they serve. As galacnet said re: planning, planning is a very important part of any business. You fail to plan not plan to fail, so make it right. Include all the necessary info in your business plan re: your cashflows, methods of acquiring new customers, adpating to change etc. The market can still take another good value host
    "Web Hosting is not just about selling space, it is about facilitating customers needs with your plans and supporting the customer for a long lasting mutually beneficial relationship."- Yaser

  10. #10
    I see the term 'market saturation' used a lot in these forums, with people saying that the webhosting market is saturated and over-run with webhosts.

    I just want to point out:

    1. market saturation - simple def.: when there are no new customers for a product/service, ie everyone who will buy it already has it.

    2. common sense and the continued growth of the internet and e-commerce tells you that the webhosting market is NOT saturated. That doesn't mean that a lot of web hosts don't struggle or see declining sales. The market is evolving and changing. It's young. There are also a whole lot of companies with increasing sales.

    3. even when saturation in a market occurs, it is not necessarily a barrier to new start-ups in that market. Everyone has a fridge, but it's still the #1 selling appliance. The restaurant industry has been saturated for a long time, but if you come along with a high quality, high service, well planned and well marketed restaurant, of course you can succeed - we've all seen it.

    I know what you're thinking: the webhosting industry is not the restaurant industry. Of course that's true, but business is business, and marketing is marketing. There is always room for fresh innovative thinking, and just as importantly, there is always room for tried and true methods of business and marketing in a more traditional sense, something many struggling webhosts seem to be forgetting (sufficient capital, business plan, etc).

    Yaser's post is encouraging. Anyone can start today and grow to be a huge success. Hardly anyone will of course, but not because they couldn't

  11. #11
    Join Date
    Jun 2003
    Location
    United States of America
    Posts
    1,838
    good comparison to resturants, cause people are always hunger for data as they are for food they can eat in 15 minnutes and not have to really deal with for clean-up
    Computer Steroids - Full service website development solutions since 2001.
    (612)234-2768 - Locally owned and operated in the Minneapolis, Minnesota area.

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