Quote:
Originally Posted by JamesCWilson
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.
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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.