What is the future of Web Hosting?

It’s a safe bet that the Web hosting industry of the future will look very different from the one today’s hosting providers are used to, and that’s certainly cause enough for concern to those in the business. An even greater concern, though, is the serious possibility that the future isn’t as far away as some hosts might believe.

Over the past year, plenty of signs have emerged that indicate the face of Web hosting is already starting to stretch and shift in new directions. And it’s not just all the usual suspects of change – i.e., shut downs, mergers, buyouts, etc – although there have been plenty of those with GoDaddy announcing they are up for sale this year. No, the new winds of change include the Giants such as Adobe, Microsoft and Google entering the traditional smaller web hosting market place.

While “traditional” Web hosts can’t help but notice these developments, many haven’t yet fully formulated their response plans. They’re dead certain they need to do something different to stay in the race for new and existing small-business customers.

The GFC certainly did not help the smaller traditional hosts, being in a capital intensive industry to change rapid direction you need to invest more than ever. Although they’re still exploring their long-range strategic options, small-business hosts at least realise they must keep up with the competition as far as value-added services and tools are concerned. That explains the growing number of hosting providers that are expanding their services entering the huge market opportunity around Cloud hosting, implementing automation tools and a new type of small business host is now evolving known as Cloud Brokers. And that’s a movement guaranteed to pick up steam in coming months.

Key Market Transformations
>> Mobile – 3G | 4G – IP Delivery
>> Expansion through Cloud Services
>> Development of Mobile Devices – Hand-held Computing, Ipad
>> Youth today have better technology at home than in the office – Youth driving the next wave of Corporate IT Transformation

Reservations of using the Cloud -
>> Security – Generally not understanding it rather than Security not being in the Cloud
>> Availability – Understanding of how infrastructure is setup and run – HA, DR
>> Privacy Issues – in Australia government policy is driving the shift to localisation – IT News – Privacy revisions present Risk

Interesting Facts driving transformation -
>> 1 Billion Mobile Users – 500,000 Mobile Apps
>> 700 Million Social Network Users
>> 630 Million Laptops
>> 80 Million Netbooks
>> 1.2 Billion Mobile Phones
>> 220 Million Smart Phones
>> Public Cloud Revenue – 23 Billion
>> 50 Million Servers – 50% are Virtualised
>> 20 Million Smart Meters

New Role Emerging – Cloud Brokers
>> Facilitating Integration between Vendors but delivery from One Provider
>> ISV’s becoming the Cloud Broker
>> Platforms allowing easy integration of specialist Cloud products

Survey of 10,000 businesses of most important attributes required from Cloud Provider
>> #1 – Pricing – (We cant get away from this as it’s the key reason to go into the cloud)
>> #2 – Understanding of Industry Selling to – Solutions for Industry Problems

Future Cloud Sweet Spots and Opportunities for Hoster’s –
>> Vertical Alignment – Geographical Cloud Environments – Rather than Global
>> Peak load – Bursting in the Cloud
>> Core Business App’s in the Cloud

What are your thoughts re the Future of Web Hosting?

This entry was posted on Monday, October 18th, 2010 at 1:26 PM and is filed under Strategy. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

2 Responses to “What is the future of Web Hosting?”

  1. Anthony Banek Says:

    What is the future of Web Hosting? http://bit.ly/b3cYHE

  2. OzHosting.com Says:

    RT @anthonybanek: What is the future of Web Hosting? http://bit.ly/b3cYHE

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