Business going down?

[Duality]

I look around different websites and forums and I see thousands and thousands of hosting companies sprouting up out of nowhere. My question to all of you is, do you think the hosting business is going downhill? Do you think there is room for more or do you think there should be no more companies made?

 

[Blue]

There is always room for quality hosting companies.
This question has been asked for the last 10 years.

There will always be kiddies and sleazy operators out there. That will not change and the growing reseller market hasn't helped.

But, at the end of the day, there will always be room for a quality business.

 

[RyanL]

I think that the hosting empire is going down, and loosing its value, it's not as big or as needed as 1-4 years ago, because there are so many companies trying to get the customers, it just isn't working.

 

[Lesli]

If you're looking to make easy money, then yes, hosting is a less fertile sea in which to cast your net. Hosting is a little more familiar to more people, more of them have an idea of what is "too good to be true" and "too high a price", and more people are more savvy (or less gullible) about how to do business on the web.

If you're looking for a business, hosting is no better or worse than any reselling or franchising business. The service is needed.

Individuals and businesses will continue to need hosting services. The specifics of what they need will continue to evolve, as will the cost of providing these services. People with the ability to forsee their clients' needs, the ability and willingness to meet those needs, and the ability and willingness to provide quality customer service - that isn't going anywhere.

 

[Blue]

I think that the hosting empire is going down, and loosing its value, it's not as big or as needed as 1-4 years ago, because there are so many companies trying to get the customers, it just isn't working.

I disagree.
How could website hosting "lose it's value"?
A website online can be the only value a company has.
Quality web hosting is not only holding value it is increasing in value.

Don't let the fact that the industry seems saturated kid you into thinking that there is no market for real, quality hosting.

 

[RyanL]

I disagree.
How could website hosting "lose it's value"?
A website online can be the only value a company has.
Quality web hosting is not only holding value it is increasing in value.

Don't let the fact that the industry seems saturated kid you into thinking that there is no market for real, quality hosting.

But the thinks people do, to get customers and what not. Now that a lot of people are starting hosting companies, they will do anything they can do to get customers, and hosting itself is starting to loose value. Dropping Prices, and overselling just to get peoples money.

I dont think that hosting may be so much loosing its value, but it just isn't what it used to be in my opinion.

 

[Lesli]

I dont think that hosting may be so much loosing its value, but it just isn't what it used to be in my opinion.

You say that like it's a bad thing. (Or a good thing.)

It's change. It's inevitable.

Personally, I'd be very concerned if the hosting market *hadn't* changed - even in the relatively-short five years I've been involved as a web host. If things don't change, how can they get better?

 

[RyanL]

You say that like it's a bad thing. (Or a good thing.)

It's change. It's inevitable.

Personally, I'd be very concerned if the hosting market *hadn't* changed - even in the relatively-short five years I've been involved as a web host. If things don't change, how can they get better?

Change isn't always for the better though.

 

[Blue]

The hosting industry is evolving, as it should.

There is an old saying in the real estate business.
The top three rules of real estate are: Location Location Location

I think that a similar montra can be said about the hosting business.
The top three rules of the hosting business are: Customer Service Customer Service Customer Service

If we can remember this rule we don't have to worry about the little fly by night hosts that come and go.

 

[CrazyTech]

Blue is right. I've seen this argument throughout the years in the hosting industry and the answer has yet to change. The niche markets are out there, you just have to find them out and then exploit them. It comes down to this - in niche markets, more research and often better service is needed in order to operate properly. These fly-by-night operations that we see all target the same pool; the clients out there looking for the best deal.

Believe me when I say there are still a lot of small town businesses out there that have yet to get online. There is only one way for the hosting industry to go and that way is up. That's not to say it won't evolve, because it has already done so and will continue to do so.

 

[Blue]

there are still a lot of small town businesses out there that have yet to get online.

I cannot stress enough how important this statement is.

The vast majority of hosting businesses can exist on local clients.

We get hung up on the "International Market" with wide eyes and visions of huge profits, but we forget the local market.

Pay attention to your base. Provide a local service first and the rest should fall into place.

 

[ANMMark]

The thing to keep in mind is this...

Regardless of our bad the industry may seem to you, it's not. Every industry has it's hacks, and shady dealers.

The thing is however, shady business typically don't last long. We can see this happen everyday in the hosting industry. It's an easy industry to get into, thus kids see this as an opportunity to "get rich". The problem arises when they don't get rich quick, and realize that there is a lot of work involved in running a business, and worse...they have no idea what they are doing, when it comes to business.

What happens? Well, when these "businesses" go out of business, it's because customers have learned their lesson, at least a little. This means the customer is a bit smarter now, when it comes to hosting.

This ultimately opens the door wide for legit businesses.

As far as the value of hosting. Remember that the Internet in it's current form, or any foreseeable form, could not exist without hosting or the hosting industry.

 

[Hypnotique]

I don't think it's going down, it's just becoming more competitive. Requiring more strategic plans for the hosting companies around. As long as quality service is provided, there shouldn't be any reason a hosting company can't make it.

 

[Caronet-Hesham]

I wouldn't say it's going down, I'd say there's a lot more competition nowadays specially between shared hosting companies. Competition should actually drive companies to perform even better to rise above competitors

 

[mike_au]

The web hosting market is over-saturated, but the more competition the better. The only problem is there is a huge influx of cheap providers which are cheap, but are overselling, thus the overall quality of the web hosting industry is going downhill.

 

[hostechsupport]

Hello,

Hosting business won't go down since there are many in this world who want to host a site of their own. Hosting business is a growing business since there are different concepts into it . Hosting business does not only deal with providing space for hosting a site... well it has many faces which you have select while running a hosting business.

Thank you.

Regards,

 

[Hypnotique]

The hosting industry is not going down hill in any way. There are still companies that don't oversell and provide great customer service. It's just making it to where one has to get out there and compete by offering even better service. Good marketing and good service is critical to stay afloat.

 

[Duality]

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?

It's all about value and even though customer service is important, a lot of people will go straight to the cheaper host.

 

[Hypnotique]

This is true, what about those offering cheap prices along with good services? I think it's a matter of how you play your game plan strategically. It's a revolving door that's open continuously, every day there will be new customers at a hosting company somewhere around the world. You have to decide how you're going to opp against the ones that seem to be getting all of the customers.

 

[Lesli]

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?

It's all about value and even though customer service is important, a lot of people will go straight to the cheaper host.

Yes, I think even big companies are losing business to some smaller businesses with ultra cheap prices.

Temporarily.

Then about 3/4 of those same folk get back on the find-a-host merry go round, and either they return to the big company or they find another hosting company. I've had clients come to me directly from little fly-by-nights, as well as from Yahoo and Interland. These customers have come to The Living Media because they want better service than they've gotten, they want more personalized help than they've gotten, they want to feel less like a number and more like an individual and valued customer.

Others on this forum have probably experienced similar things.