What will be to new hosts

S

SpecHackers

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As i see new hosts coming up daily, and there is a very big crowd in the market already with big gaints like yahoo , godaddy fighting for new clients.

will these new hosts survive in the industry,
 
They will survive if they are smart. When I say smart, I mean starting off with a small reseller, then filling that up and eventually moving up to a VPS or dedicated. Once you have a small-decent size client base, the rest is history. Word of mouth gets around and you start to get big.
 
You can be smart and start big.
There will always be enough space on the market for new companies. Signing up new clients is ten times harder that selling to existing ones - that is what most established companies do. With the right strategy and demographic, any company can succeed and get their customer base growing as long as demand is growing, too.

Best,
 
Market has been and will continue to be saturated for a long time. In the virtually endless pattern of new hosts a few will survive. Most will fail.

Starting a hosting company is the hardest part. Once you've established yourself (by doing things the right way, of course) it gets a little easier. If you can survive those initial months and grow a little then odds are you will do fine. I'd say the majority of new hosts fail within 6 months to a year. Generally speaking, if you make it past that period of time you will be alright provided you stay sharp and smart.
 
CrazyTech said:
Market has been and will continue to be saturated for a long time. In the virtually endless pattern of new hosts a few will survive. Most will fail.

Starting a hosting company is the hardest part. Once you've established yourself (by doing things the right way, of course) it gets a little easier. If you can survive those initial months and grow a little then odds are you will do fine. I'd say the majority of new hosts fail within 6 months to a year. Generally speaking, if you make it past that period of time you will be alright provided you stay sharp and smart.
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i agree with u dude but with coming technologies i think hosting will become so cheap that the customers will increase by 10 folds so i doubt that hosting companies will suffer or ever get saturated .cause it might be possible one day to get 10 gb space and 100 gb bw for 4 $ who would not want that ? so technology will never let the hosting market to come to a stand still.
 
killerid said:
cause it might be possible one day to get 10 gb space and 100 gb bw for 4 $ who would not want that ?
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You can already get those things today:
HostingPlex.com, PowWeb.com ...
 
Artashes said:
You can already get those things today:
HostingPlex.com, PowWeb.com ...
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omg i didnt know that but i think they are not offering Cpanel 10 only ensim or plesk i think and how long they been in buisness ? i once was hosted on some site with reseller account for 15 gb and 150 gb bw for only 20 $ and with cpanel/whm so i was thinking that in future it would be possible to get the same for half price.
 
These companies have been around for many years. The overall industry opinion is that these companies oversell their resources, however, they have been around for a while and even though they might oversell on some level, many of their customers do not use all resources provided.

Or, in many cases, they would have plenty of limits in place to prevent customers from using all those resources.

PS: I am sure one of them offer cpanel hosting.
 
And that's why overselling works. These guys are so cheap that people will keep coming back to them and the majority of them barely use a fraction of what they pay for.

i agree with u dude but with coming technologies i think hosting will become so cheap that the customers will increase by 10 folds so i doubt that hosting companies will suffer or ever get saturated .cause it might be possible one day to get 10 gb space and 100 gb bw for 4 $ who would not want that ? so technology will never let the hosting market to come to a stand still.
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I didn't say anything about the market coming to a standstill - it can be saturated and not come to a standstill. It all goes back to economics 101 and scarcity. Customers are scarce - there is a limit of them though it might not seem that way. My point is that 10 new hosts might come into business and 6-7 of them will probably fail because there are not enough customers to pull in. That's a pretty well saturated market.
 
CrazyTech said:
Customers are scarce - there is a limit of them though it might not seem that way.
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I disagree with that, there is an endless amount of customers on the internet. Not many people right now even know how to host or establish a website, but that number is increasing very quickly. If your sales staff is smart, you can bring those potential customers in.

I do agree that the market is become more saturated, but if 7 out of 10 hosts fail like you say, then that saturation will be only for a brief period of time. Yet i'm afraid it will be an almost endless cycle.
 
There are only so many people in the world (and even more so only so many people connected) - so yes customers are scarce. I use the term to define scarce as something that has a limit and not necessarily that there is a small number of them (economic scarcity). There is an explosion right now of clients - I agree with that - afterall that's what's responsible for the explosion of hosts.

As for the time when this trend will end, I don't know. The new generation is becoming more and more adapted to technology and more and more are aware of what websites do and how to use them. There are just as many people who think they have the knowledge to run a host starting one as well. Afterall, why is the reseller market so popular?

We don't see them here as much but head on over to WHT and look at some of the threads. Watch the people that have links to their hosts in signatures - shoot even try to lookup _____host.com - a lot of them are taken. I daresay that 6-7 out of 10 new hosts fail since most are started by a teen (or adult) with little knowledge. All they see are the $ figures being tossed around.

It's very easy to start in the hosting industry. You can easily start a host with nothing but the cost of purchasing a reseller (which in some places is $10 a month). Heck, I've even seen free reseller accounts offered here and there. That's why I don't put much stock into the big numbers of these hosts that are publicized as owning so much of the market. There is an enormous small-medium sized market in the hosting industry and it accounts for roughly 9 or more of those 10 hosts in my above example. Most of them fail because of lack or interest or the quick money isn't there as hoped.
 
Excellent comments all around; certainly not much for me to add!

Just one observation -- I suppose the rather minimal 'entry requirements' within the hosting industry (i.e. an inexpensive reseller account) make it rather easy to start a (and perhaps eventually fail with a) hosting enterprise. That said, I wonder if the seemingly high failure rate isn't so high after all -- I've heard various numbers cited before regarding the failure rate of any business (particularly small businesses), and it seems that hosting isn't really too different from virtually any other business. So, I guess I'm just pointing out that starting and operating any type of business is difficult, hosting not being too much of an exception.

On the more marketing end of things (and - uh oh - I'm revealing a bit of our business strategy!) I think the businesses that ultimately survive through 'thick and thin' are those who see 'beyond the benefit.' Superior quality, excellent support and good pricing, for the sake of providing benefits to the customer, will get you a long way, but honestly I don't think it's enough if the market gets tough. The 'beyond the benefit' part, in my humble opinion, is founded in recognizing the very special nature of our type of business as the digital 'printing presses' of sorts for peoples ideas, hopes, dreams, and goals. When you can prove, day in and day out, that you recognize that and run your company on that more 'human' basis, then I think you've got the ability to survive through almost anything, because you have truly loyal customers.
 
hostwire.com said:
The hosting market is over saturated and eventually it will stabilize.
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By what context?

I have seen no evidence of over-saturation in the hosting sector, ever. Sure, there's a lot of companies around, but the diversity of them is so extreme, that it literally negates any possible saturation.

How would a new company "survive"?
Provide that which they advertise, and stick to a sustainable business plan. Be innovative, and know your internal limits.

I've said it a few times: The hosting industry is not complex. It is just another sector of one of, if not the fastest growing industry in the world: IT.

The hosting industry is just like any other business: If it's founded on good principles, and good planning, there is no reason for it to fail.

There is a lot of unchartered waters in this sector.

Simon
 
The Market will shake out the bad hosts, but there is room for growth in the market. Walmart thought they had almost reached a saturation point some years back and then found out they were wrong. The hosts with a sound business model will survive no matter their size and grow to be the next big thing.
 
Yes, the market is very very saturated but so is the world with people. New users are logging onto the internet each day and with advances in technology and businesses more business for serious hosts become available. Most hosts that arent serious about what they do will fade away over time as it has been proven. The smart, profession and the willing can and usually do survive as long as they remember that strategy is key.
 
Don't let the amount of web hosts scare you.

Around 90% of webhosts close within their first year. Those are usually the hosts that you see offer "unlimited" bandwidth, half a server for $1/year.

I don't think these hosts will stop emerging. Just keep on supporting your customers nicely and you should survive.

Good luck to all the web hosts out there.

- Tomer
 
Any new host has the chance to do well. If they have the right mind set and go the extra mile to make a sale most will stick around. Starting out can be simply selling to your local makret. You stand a good chance to pick up new sales if you present yourself in a professional manner. The market will always have a way to work out the bad hosts and allow bigger companies to grow.
 
Tomer said:
Don't let the amount of web hosts scare you.

Around 90% of webhosts close within their first year. Those are usually the hosts that you see offer "unlimited" bandwidth, half a server for $1/year.

I don't think these hosts will stop emerging. Just keep on supporting your customers nicely and you should survive.

Good luck to all the web hosts out there.

- Tomer
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That's a very good way to look at it.
You have got people that want overnight wonders and want to wake up to a rush of clients, Somehow it never works like that. You have to work hard and that's your key to success. It helps if you actually enjoy what you do give you the extra drive for success.
 
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