Blogs: M&M’s --- Part I - This stands for Marketing and Money
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April 29, 2003 -- (WEB HOST INDUSTRY REVIEW) -- META Group Inc. (metagroup.com) yesterday announced the availability of its newest METAspecturm evaluation for the managed Web hosting outsourcing market. This market space is comprised of companies that provide facilities, infrastructure and services used to house and operate/manage Web hosting and related activities.
In terms of focus, the report emphasizes the fully managed segment and is restricted geographically to the North American operations of 11 vendors: AT&T (att.com), BellSouth (bellsouth.com), Cable & Wireless (cw.com), Conxion (conxion.com), Digex (digex.com), EDS (eds.com), Genuity (genuity.com), IBM (ibm.com), Qwest (qwest.com), Sprint (sprint.com), and Verio (verio.com).
"The $2.7 billion market for managed hosting services is slowing to a 23 percent growth rate as many customers consolidate contracts and migrate services in-house," says Corey Ferengul, vice president and principal analyst with META Group's operations strategies. "Emerging industry trends that will accelerate hosting market growth include Web services, utility computing, and the general emphasis on outsourcing as a strategy to reduce costs and extend capabilities. The outsourcing relationship should be viewed as a trusted strategic relationship, emphasizing business value over pricing."
According to the META Group, the managed Web hosting market has undergone significant change during the past year and should see more stability in 2003 with large providers continuing to dominate the market. META Group sees more room for improvement in service offerings and recommends that customers seek providers with strong financials, a proven track record, and a broad complement of services.
A summary of the key findings include: 1) a strong market presence is essential for leadership; 2) market maturity for high-end managed services will not occur before 2005; 3) the managed Web hosting market will be dominated by large players; 4) successful vendors will provide hosting services as part of a broader services portfolio; 5) the key differentiator in the enterprise market is professional services; and 6) vendors must demonstrate a commitment to Web hosting.
Read Back Issues of WHIR Magazine
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July 2009 - What am I Worth?
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May 2009 - The Blueprint for a Small Web Host
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