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  Post #19 (permalink)   01-13-2009, 09:04 PM
Artashes
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Quote:
Originally Posted by JamesCWilson View Post
There is little doubt that the credit crunch will affect the hosting industry, and it's also safe to say that it won't be much of a positive affect either. Some hosts will no doubt go out of business, or make some changes in order to keep themselves afloat.
I disagree completely. The nature of the hosting industry is that if you know what you are doing - you will run a profitable business, so no outside investment is necessary. Hosting does not also represent a high cost for companies/people to get rid off and/or save on. If anything, it is a minor cost - considering the benefits. Nowadays, you can find hosting for as long as $5-10/month and it will give you, a small or a medium sized company all the basics it needs to keep online presence running.

The hosting industry will continue to enjoy 25%+ yearly growth (we reported on it earlier http://www.hostingdiscussion.com/blo...llion-in-2010/ ) I think this is an amazing sign for this industry and among many other niches, hosting will be immune to the credit crisis.

As I mentioned before, you don't need a large budget to start a hosting company. Most companies are still started by individuals who saved up a couple of thousand dollars and started it as a side venture. Even if you are going for a large datacenter-like investment, the news has also been good: everyone from ThePlanet to i/o Data Centers have raised $45 and $56 million for their new projects without much hassle.
http://www.hostingdiscussion.com/blo...edit-facility/
http://www.hostingdiscussion.com/blo...dc-in-phoenix/

Hosting, in large part of it, is a data storage industry and it will be growing like mushroom in the next 5-7 years, especially when other businesses are not doing so well.

Anyway, that's just my personal feeling.
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