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  1. News.com article on Web Hosting

    http://news.com.com/2100-1033-938311...e.dht.nl-sty.0

    Web hosting: Survival of the fittest


    By Margaret Kane
    Staff Writer, CNET News.com
    June 21, 2002, 9:45 AM PT


    This week's departure of two well-known names from the Web hosting business is the latest sign that only the strongest will survive in the rapidly consolidating market.

  2. #2
    Join Date
    Jan 2002
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    Interesting
    Sam Weber

  3. #3
    Join Date
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    Loudcloud was always a dud before and after their much hyped IPO. I don't track them anymore. Are they still listed on the NASDAQ or were they dumped??
    AussieHost.com Aussie Bob, host since 2001
    Host Multiple Domains on Fast Australian Servers!!

  4. #4

    Talking

    I read that article and noticed something kind of funny.

    At the beginning of the article, the writer quotes this ceo as follows:

    "Antonio Salerno, CEO of Santa Clara, Calif.-based Conxion"

    Then later in the article, she quotes him again, but with a slight difference:

    "Onion's Salerno compares the existing Web hosting market to the car industry."

    How did she go from "Conxion" to "Onion"?

  5. #5
    According to the article, web hosting is a very capital-intensive business.

    Huh?

    I'd be surprised if many web hosting companies had capital costs exceeding 12 months revenue; in many cases, it's probably much lower than that. How does that qualify as capital-intensive?
    Dr. Colin Percival, FreeBSD Security Officer
    Online backups for the truly paranoid: http://www.tarsnap.com/

  6. #6
    Join Date
    Jun 2000
    Location
    Southern California
    Posts
    12,121
    When you get to the 'build a datacenter' point, I think it shifts to that. When you're leasing a few $99 servers, no.
    HostHideout.com - Where professionals discuss web hosting.

    Chicken

  7. #7
    Originally posted by Chicken
    When you get to the 'build a datacenter' point, I think it shifts to that. When you're leasing a few $99 servers, no.
    I'm still not convinced. Rackshack has over 5000 servers, each of which is giving them $99/month of revenue; that's half a million $/month. Add the setup and other fees, the people with more expensive servers, etc, and they're probably getting somewhere around a $1M/month of revenue. How much did that new datacenter of theirs cost?
    Dr. Colin Percival, FreeBSD Security Officer
    Online backups for the truly paranoid: http://www.tarsnap.com/

  8. #8
    The datacenter where we haven some equipment colocated here cost over $4 million. Interestingly, the company that built it went out of business and sold it. The company that bought it filed bankruptcy and just sold it as well, for $750,000.
    I thank my Lord for all His wonderful blessings.

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