Hosting Predictions for 2010

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.

Stacy Griggs

About

Stacy Griggs is Sr. Director of Customer Experience for Cbeyond Cloud Services , previously Stacy was the Vice President of Sales for MaximumASP which was acquired by Cbeyond in 2011. Cbeyond (NASD-CBEY) is a publicly traded provider of telecommunication and cloud services, which has been recognized by Microsoft at its 2009 Worldwide Hosting Partner of the Year and 2010 Hyper-V Cloud Provider of the Year. Prior to Cbeyond Stacy held a series of positions at Hosting.com including Chief Sales Officer, Chief Service Officer and General Manager for their flagship Delaware data center.
Stacy has led several information technology services companies over the last 15 years. He was a Managing Director for KForce a $1 Billion publicly traded professional services firm. At KForce Stacy managed 5 business units that collectively generated $18 Million in revenue and had 140 employees. Prior to KForce Stacy was a Vice President and part-owner of Diamond Technologies, an 80 employee custom software development firm. Previously Stacy held management positions at TMP Worldwide, the University of Pennsylvania, and Humana.
Through his theWHIR blog, Stacy will touch upon sales and service in the Web hosting space, web hosting events, cloud computing and industry trends.

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