Why do you have so many hosting companies ?? Well you could say that there has been a great demand for hosting as this sector is booming. Every little person wants a website., unlike in the past where sites were done only my the big companies. I would see it differently....different types of hosting companies for different types of needs

I don't think that business is going down, I think that its just getting more competitive. But that's any business, whether you own a grocery store, or a gas station that is on every corner - or a web hosting business.

I think that the key is to offer a great service, or to fill a specialized need, and to do it at a great value. There is always room in any industry as long as you offer more than your competitors.

The web hosting industry is a unique business.

It has relativly low startup and operating costs and can bring you to the point where you are turning a profit within the first year, normally this doesn't happen with businesses.

Unfortunately because of the view that it's cheap to start, cheap to run, and will let you get rich quick... You have people diving into it having no idea what they are doing, hence the horror story reviews we see constantly.

In response to bad hosts, a niche markey of hosting review sites have been started, now it's coming to light that they are selling out, literally. They sell advertising to companies, and those companies just happen to get a better review ^_^

Yet many negative reviews are not describing "kiddie hosts", but big hosting businesses, that have been around for years.