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There are some good points stated but don't you ever think that even big companies are losing business to some smaller business just because the smaller business offers cheaper hosting?
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Quite a few of the larger hosts are in a fierce "who can be cheapest" fight. I doubt that the considerable smaller businesses can play that game more effectively that they do, as economy of scale does play a part in this. Quality of service is what sets the smaller hosts apart from the crowd, if anything.