Liam Eagle: LETTER FROM THE EDITOR

One of the big concerns among Web hosts
these days stems from the widespread assumption
that some of the Internet’s biggest
brands – in particular, Google and eBay – are
awfully close to stepping into the Web hosting
business in a meaningful way.

It only makes sense, after all, that both
companies would be tempted to turn their
vast resources, technical expertise, captive
audiences and ubiquitous branding to what
must certainly seem like a surefi re source of
added revenue.

Smaller Web hosts are already anticipating
the new competition, and many are seeking
strategies for taking on the big brands.

In this issue’s cover story, Dennis McCafferty
looks at the possible impact of the
near-inevitable entry of these Internet giants
into the Web hosting business. Faced
with an impossible competition in terms of
pricing and scale, smaller hosts will have to
focus their energies on providing the kind of
personal service and specialization that big
companies simply cannot.

The rest of this issue addresses that hosting
challenges from a variety of angles
- looking at some of the ways hosts can involve
themselves in new technologies, how
smaller hosts can add value to their off erings
rather than competing on price and even
how a Web host considering selling its assets
can make its business more attractive.

In his feature on Web hosting’s role in the
delivery of VoIP, Wayne Epperson looks at the
variety of means by which carriers are looking
to produce, promote and deliver VoIP services
- in some cases through reseller-tailored off erings
- and what Web hosts can do to include
them among their own off erings. While enduser
interest in VoIP service is growing, analysts
believe the boom is still to come, and hosts still
have time to position themselves to be the
VoIP provider to their existing customers.

In that same vein, Carl Burnham’s article on
moving up the value chain discusses strategies
hosts can use for separating themselves from
ever-tightening hosting margins – and moving
the competition to a question of quality – by
constantly adding value to their offerings.

But competing isn’t always the best option.
While the introduction of major new
players into hosting may create new pressures,
it might also produce some attractive
opportunities for smaller hosts to be acquired.
In his feature on selling your hosting
company, Philbert Shih discusses how Web
hosts can make their companies as attractive
to potential buyers as possible.