June 14, 2007 – (HOSTSEARCH.COM) – A recently published report suggests that the “mass-market” web hosting industry (shared, virtualized service and standardized dedicated server segments) is entering a “critical period of transformation”. The report, entitled 'A Review of the Mass-Market Hosting Sector - M&A is the DNA of change, but transformation continues to take hold' was produced by Tier1 Research (http://www.t1r.com). The report identifies a number of web hosting trends and potential future directions.
Tier 1’s report considers web hosting against a backdrop of widespread broadband usage, considerable growth in use of mobile access, “multiple web presence possibilities”, and increased market consolidation. The report highlights the fact that there is an “assault” on shared web hosting. A number of new players are entering a market that may face a potential “revolution” through virtualized infrastructure changing web hosting delivery. The report also indicates changes in market share and current trends are “presenting significant challenges and opportunities in this sector.”
"Web service firms not normally thought of as hosters have now successfully entered the sector," explained the lead author of the report, Mr. Philbert Shih, Senior Analyst at T1R. "At the same time, the Internet giants continue to encroach on this sector as well. Ad-supporting hosting services remain young, but they are driving Google and Microsoft while also serving as an alternative revenue source for companies that take the necessary steps to reinvent the way they do business. All are important developments for a fragmented industry that is entering this critical period of transformation."
The report highlights a number of other trends, including the rise of merger and acquisitions, the emergence of clustered hosting and grid hosting technologies, and the direction of Google towards “becoming a factor in the mass-market hosting sector”.
Tier1’s report is available through the company’s corporate website.
