Driving these changes is the ongoing increase of broadband access and Web-enabled devices, as well as the growing use of the Internet in people's personal and business lives. This has led to emerging interest in collaboration tools, which is driving demand for Web-based application services. Meanwhile, shared hosting continues to be criticized from all directions, virtualized infrastructure is having a greater influence on the way hosting services are delivered and open computing platforms are slowly gaining market share.

The 47-page report, titled "Mass Market Hosting Quarterly, Fall 2007", is the second in the 2007 T1R Mass Market Quarterly Series, which is designed to provide timely analysis and perspective on key technology trends and marketplace developments in mass market hosting. It recaps the key events of the quarter and assesses their impact by analyzing changes in market share, including important trends and developments that were driving the mass market hosting sector, as well as insight into where this market is heading.

"Private equity is back in the sector, and some of the larger players are consolidating in the face of intense competition," says Philbert Shih, senior analyst at T1R and lead author of the report. "Meanwhile, the Internet giants continue to make inroads, and Web service firms and application developers not normally thought of as hosters are making their presence felt. All of these noteworthy changes are telling in terms of possible future directions for this marketplace."

The report covers more than 20 key public and private companies in the mass market hosting sector, including 1&1, Facebook, Go Daddy, Google, Hostopia, Microsoft, Peer1 Network, Rackspace, Register.com, Salesforce.com, The Planet, Tucows, Verio, Web.com and Yahoo! and Zoho.

Last week, Tier1 revealed its keynote speakers for its third annual Hosting Transformation Summit, which will take place September 17 to 19 at the Venetian hotel and casino in Las Vegas, Nevada.