June 6, 2005 — (WEB HOST INDUSTRY REVIEW) — Market research firm Yankee Group (yankeegroup.com) announced on Monday that its recent study shows the Web hosting market is continuing to expand as SMBs and mid-market enterprises adopt Web sites in growing numbers in response to customer expectations.
According to the Yankee Group, approximately 60 percent of small and medium-sized organizations now have a Web presence. The survey showed that medium-sized businesses had the highest adoption rate of Web hosting services with almost 87 percent penetration rate, while organizations with 2 to 99 employees experienced a more than 10 percent increase in adoption. Meanwhile, small businesses of 2 to 19 employees also increased their adoption of Web hosting services, although the growth of their adoption and management rate relied significantly on outsourcing to hosting companies.
The Yankee Group study showed that the Web hosting market is slated for measurable growth, with pricing remaining as the most crucial factor for SMBs in choosing a Web hosting provider. The company suggests Web hosting companies invest in branding their company as a cost-effective provider of premium services for the SMB market.
“The days of ‘one size fits all’ focus are over,” says Sanjeev Aggarwa, “the need for customized, high-value Web hosting services is the winning solution for SMBs seeking to maximize ROI and for vendors looking to obtain greater differentiation and market leadership.”
