It’s been a hectic couple of months at MaximumASP, we just completed construction of a new datacenter, moved thousands of servers and relocated our HQ across town. This is long-winded explanation as to why I am just now wrapping up a post I started on December 29th with some hosting projections for 2010. Fortunately, none of them have happened yet, so this is all still conjecture.
The Cloud Goes Enterprise – Causing enterprises to go for the cloud. With enhancements in security huge companies will make the cloud well… huge.
M&A Returns – This has been a quite year from an M&A standpoint, 2010 will see a return of companies buying and getting bought. Additionally, I wouldn’t be surprised to see an IPO of a large hosting company in 2010.
The Cloud Finally Gets Standards – At some point during the year a group of influential cloud providers will band together and develop the first set of real standards for the cloud. Interoperability, code portability and certainty will accelerate enterprise adoption of cloud computing.
More Software Companies Will Adopt SPLA Pricing – Software is increasingly sold as a service, the days of large CAPEX buys of software are over. This will have the tangential effect of enabling PaaS companies to start economically offering most enterprise software’s as a service.
Hosting Will Be Greener – Whether through cap and trade, client demand or the desire to be more profitable this will be the year where hosting companies develop a strong strategy for being friendlier to the environment.
Taxes will Become an Issue for Hosting Companies – States have huge budget shortfalls to makeup in 2010 and beyond. This need for tax revenue equals the end of the sales tax free Internet (maybe it’s not in 2010, but is coming soon). This will be an issue for hosting companies because there may be a jurisdictional nexus created by the servers being located in your facility. Some states will try to claim that taxes are due to their state for transitions that occurred on servers housed in the state.
Since this is all conjecture, who knows what will really happen. This time last year I thought AIG stock was a good buy and the Eagles were a lock to win the Super Bowl, hopefully the predictions above will be better than those.
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Comment by Anonymous on Sunday, March 07, 2010
there is really an increasing demand for this hostings in different industries. many companies that offers such
Web Hosting will ensure more inmcome and profits.
Comment by Anonymous on Sunday, March 07, 2010
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Comment by ara crew on Sunday, March 07, 2010
the increasing demand for Web Hosting will surely make hosting greener. for this will become vital to aby industry to acquire a hosting service.
Comment by Michael Flaherty on Tuesday, March 09, 2010
Stacy, you make some great points, and I'm sure you and your team are glad the data center migration and office move are over. Led me add to your conjecture with a few data points for the hosting industry in 2010.
We continue to see strong demand for data center space this year, and into next year at Online Tech in Michigan. In a study published by the Digital Realty Trust ( http://tinyurl.com/ykdddng ) , data indicates that the market for data center space will continue to grow in 2010 and 2011. Key findings of the new study include the following:
83 percent of respondents are planning data center expansions in the next 12 to 24 months;
36 percent of respondents have definite plans to make those expansions during 2010;
73 percent of respondents plan to add two or more facilities as part of their data center expansions;
The need for additional power is the top reason for data center expansions, rising from fifth place on last year's survey to first place this year;
Data center and IT budgets are both projected to increase by 8 percent in 2010, up from 7 percent and 6 percent, respectively, last year;
Of those planning to expand, 70 percent are planning large projects of at least 15,000 square feet in size or 2 mW or greater of power; and
83 percent of respondents with definite plans to expand in 2010 plan to do so with a partner that specializes in data center design and construction or data center leasing.
Closer to home in Michigan, we see the job market improving, and an uptick in business. This is a great sign and helps validate the strong local market pull for data center space, colocation, and hosting solutions. In a recent report published by Manpower (Manpower Employment Outlook Survey; http://tinyurl.com/yjdkwwe ), signs are strong across the state of Michigan, including Flint and Ann Arbor, where Online Tech has data centers for colocation and dedicated servers.