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Holiday Hosting Part Two: Fear of Failure

Since my previous post on the subject, I have studied some semi-reliable material (Wikipedia) regarding the time of year known as the "holiday shopping season."

It turns out that "Black Friday," the festively named day that officially kicks off the holiday shopping season, has an online analogue, known as "Cyber Monday."

Personally, I first heard about Cyber Monday this week, through a press release issued by Web hosting provider Host Depot, part of another perennial Web hosting effort I've come to regard as about as reliable an occurrence as the Web-hosting-as-gift offer.

Host Depot's announcement was part of the company's campaign to warn Internet retailers that their Web sites are sure to suffer under the strain of this year's online holiday shopping traffic.

While Cyber Monday is regarded by some as the peak of the year's online shopping activity, Host Depot says it expects the traffic to carry on for several weeks, a claim that would seem to be in line with the also-commonly-held believe that Cyber Monday does not exist as advertised.

Either way, the reality of Cyber Monday is somewhat beside the point, which is that while some Web hosts invariably see the holiday season as an opportunity to push their consumer hosting products, others tend to aim a step higher up the chain, targeting retailers as they prepare for their busiest time of the year.

Web hosts push two separate and almost-conflicting messages to retailers this time of year. On the one hand, holiday shopping traffic is a precious resource and retailers should fight to grab their share of the bounty. On the other, holiday shopping traffic is a threat to the stability of a retailer's site - that is, retailers that have failed to take adequate precautions, and of course, "hey, we can help you with that."

UK Web host Fasthosts pointed out last week that UK retailers are in danger of missing out on their share of £5 billion in holiday spending without adequate hosting support.

It might be an exaggeration to call this "fear mongering." After all, there is a tremendous amount of online holiday spending. And there is a real danger of an inadequately prepared site being knocked offline by a surge in traffic.

Managed host SingleHop thinks recent outages at the Amazon and Wal-Mart Web sites are evidence of this, though neither company seems to have indicated that any downtime was a result of being overwhelmed.

My question is this - how many Internet retailers can rightfully expect an overwhelming surge of holiday shopping traffic, but are unaware that their sites might stand to suffer from this increase?

Granted, this is almost pure speculation, but I would imagine that the very biggest retailers see the lion's share of that projected holiday spending. And those companies, Wal-Mart and Amazon especially, are more than well aware of their need for scalability under the circumstances.

What's more, I would imagine that the number of newly launched and under-supported e-commerce sites capable of attracting a potentially crippling flood of holiday traffic, but unprepared to handle that traffic, is small indeed. And those few businesses that might fit this description, it might reasonably be assumed, do not make a priority of foresight.

Call it preaching to the choir, or preaching to the deaf. Either way it seems like it might be a waste of preaching.

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Holiday Hosting Part One: The Gift of Hosting

I'm not perfectly clear on the technical distinction, but I get the feeling that once Thanksgiving weekend has come and gone in the US (ours falls a little earlier here in Canada), it is officially considered the "holiday season," at least as far as the buying and selling is concerned.

In the offline retail world that tends to mean mall Santas, sparkling oversized tree ornaments and "door crasher" specials or "holiday savings."

Lets set the whole crass-commercialization-of-the-holidays conversation aside for the moment and agree that the holiday season is big business for folks who make their living selling things.

Intuitively, that wouldn't necessarily include Web hosting providers, since the sort of thing they sell can't exactly be wrapped up and stuck under a tree. But that hasn't stopped Web hosts from hopping on the annual "holiday shopping" bandwagon, in some cases trying to position Web hosting itself as a gift idea.

The simplest cases make the most obvious sense, such as AIT's offer of a free PC or a PDA with the purchase of a hosting account. Rather than offer hosting as the gift, the company is offering a tangible, unwrappable device to supplement a new account.

It is perhaps not a perfect execution - but certainly a logical one. I once got a DVD player when I signed up for a cell phone plan, and I'll admit, I gave it to my mother as a gift. She liked it.

More interesting to me, however, are the companies, such as Dotster and MochaHost, that announced this week they were offering hosting packages designed to be purchased as gifts. The idea is a bit out-there, if you ask me. And the companies would seem to agree, implicitly, by taking pains to explain the value of the gift of hosting in their press releases.

Dotster explains: a Web hosting account is the "ultimate Internet gift," because it requires no shipping or wrapping, and it takes the hassle out of holiday shopping.

All true facts - but they don't exactly scream "thoughtful." And I have yet to meet a child with visions of "domain w/url forwarding and email forwarding for one year" dancing through his or her head.

SiteGround even went so far as to take the cost out of holiday shopping, giving each of its customers five $20 gift certificates they can spend on themselves or give away to family and friends.

I'm not absolutely certain that the merits of hosting-as-gift are worth debating. I'm sure some people will give it a try. Me, I'll probably stick with CDs, at least for one more year. Frankly, I'm not convinced the reason my friends and family aren't making Web sites isn't because they don't have the hosting.

What I'm really interested in here is the notion of a place for intangible Internet services in the physical world. I mentioned this sort of thing in an earlier post about an idea Paul Engels from Hostopia had for marketing Web hosting services.

Go Daddy got the wheels turning again on this with an announcement that it was offering holiday gift cards, available in values ranging from $2 to $1,000. While they can be delivered by email, Go Daddy is also offering to deliver physical cards that can be wrapped and handed over. While Go Daddy doesn't have quite the selection of, say, Wal-Mart (which, incidentally, has begun sell AT&T brand DSL services in stores), a Go Daddy gift card provides a pretty unique possibility - it takes a domain name (and not an already-registered one) off the Internet and puts it in your hand.

I spoke to Rodney Giles, CEO of Web host eleven2 a few weeks ago, and he mentioned that when his company started out they approached some of the big retail companies with an idea to put a domain registration on a physical card and sell it in stores.

He says he never made a deal, mostly because the retailers weren't eager to deal with a start-up, and I might add that at the time they probably didn't completely understand the potential of what was being proposed.

But I think it's a great idea, and probably a fascinating experiment. Putting a domain registration on a card, would make domains, hosting and Web publishing available to a whole market of people that might, or might not, exist. That is, kids, or other people with no credit card and therefore no means to register a domain name.

I'm sure there might be somebody out there offering hosting on a card, or somebody offering domain registration by personal check. But when the Go Daddy cards start showing up on the shelves at Best Buy, I think that could be a turning point.

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