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  1. #1
    Join Date
    Sep 2008

    Impact of 2008-2009 recession on Hosting Industry and Future Outlook

    Please share your insightful thoughts...

  2. #2
    I believe that recession dont and wont have impact on hosting industry because most people are trying to get out of the recession by starting an online business. If you want to be online you have to buy a web hosting package

  3. #3
    Join Date
    Apr 2007
    The recession will affect everyone and also all business in some way or another, we can see this in all industries even IT, simply look at Microsoft every OS they released has always been more expensive than the previous as its to be expected for an upgrade yet they have had to release windows 7 cheap than the older Vista, why? The recession and the risk that people will look at the cost and stay with what they have.

    Ok so back to hosting.

    Basically we aren’t going to see a huge impact in most places.

    I know a few data centres (not naming) that actually have already in the past year or so cut staff by 50% or more... to reduce costs as customers evaluate how much do they really need that overpriced quad core server and stop services.

    A website for most people is simply not something that you can close... most people use it far too much such as business point of sale, email or just a blog, all you have to do is see a data centre go offline for 5min and watch how many people notice and are affected.

    So what I think is going to happen:

    Current customers will look around for better deals elsewhere as they become more conscious of what they are paying in comparison to others, another point is people don't really like putting the effort into moving their site to another server we all know that the process can be long tedious, go wrong... and also have some downtime. So the majority may not even move.

    I think we are going to notice the main difference in signup’s, at the moment fewer new companies are starting up so that means less people need hosting, also when getting hosting for the first time it’s just as easy to get it from host A as it is host B so you need to stand out from the crowd more than ever.

    At the moment I think the most growth of the internet and hosting providers will be with their current customer expanding as their sites do, so look after them!

    Its going to be a very interesting few years, and thank god I am in the budget hosting market ;-)

    Wow I can talk alot about nothing...
    - Buying up websites, side-projects and companies - PM Me! -

  4. #4
    Join Date
    Mar 2009
    Toronto, Canada
    There has been a few threads already made regarding this or related to this.

    In my honest opinion, the web hosting industry will only continue to grow until there is some new technology introduced that can make simple web hosting obsolete.

  5. #5
    The only way in which I can think it will affect the hosting industry is if people stop buying websites because they have been put of starting a business or that monthly payments will scare people away due to being cautious with their money. I hope it doesn't have an affect in the long term because it will stop business form growing due to lack of web hosting.
    Last edited by Aus-ar; 07-26-2009 at 01:03 PM.
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  6. #6
    Join Date
    Dec 2007
    Indiana, USA
    I've seen hobbyists cancel their hosting due to monetary issues but it's not been any different from before/after the start of the recession that I can tell.
    Michael Denney - MDDHosting LLC
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  7. #7
    I think some hosting markets will grow, while some will decline.

    For example, I think full business related hosts will see a huge surge in business. People are turning online more than ever for ways to supplement income - and as you know, you need a website to make money online.

    Budget hosts - I am iffy about this one. I think it could go both ways. A lot of hobbyest web masters tend to stick with budget hosting so I think those customers will cut their hosting first if they are low on money.

    However, businesses who are looking to save money could switch to a budget host.

    Free hosts might surge - free hosts might see a huge influx of customers as they drop their paid hosts for a free solution. However, it might be harder to turn a profit as people are less responsive to advertising now.
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