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...."
from hosting and Designs.
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