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Web Hosting Market Just Getting Started

By Michael Pastore

  "   .....The worldwide market for Web hosting remains huge, especially when you consider that most companies do not have a Web site or are not properly equipped to handle e-commerce transactions, as found.

     "Users are not getting the message about Web hosting benefits and are often confused about what type of vendor to choose, as well as what level of service to sign up for," said Christina Kasica, senior analyst at Ovum. "We talked to over 5,000 companies in three geographical regions and uncovered some surprising facts about this market."

     More than half (56 percent) of the companies contacted did not have a Web site, and only 14 percent of those with a Web site used Web hosting. Three-quarters of the companies using Web hosting spent less than $25,000 per year on hosting. Ovum credits Several factors, such as history, control and prudence, with driving the decision to retain in-house control, as the majority of companies worldwide who have a Web presence continue to use internal resources for this purpose.

     Using Web hosting permits companies to get complex Web sites up and running in a matter of days. Today's increasingly mission-critical Web sites also require high levels of uptime, performance, security and availability. Web hosts can guarantee these in a way that in-house provisioning cannot. This means the potential for high revenues in Web hosting is phenomenal...."

SOURCE: http://cyberatlas.internet.com


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