Usman Arshad of HostDime presents Monday at HostingCon
(WEB HOST INDUSTRY REVIEW) — Usman Arshad, director of business development at HostDime (www.hostdime.com), presented Monday afternoon on advantages of expanding your business internationally, and strategies for taking on that very challenging undertaking.
The advantages of operating internationally he addressed included faster growth through introducing new markets, access to potentially cheaper labor forces and a greater brand recognition over a larger area.
The hosting market in the United States, he says, has reached a kind of saturation point where there is an incredible number of hosting providers out there, and most of them provide a very similar product.
He also points out that the US dollar still has a lot of value around the world, which is something that can be taken advantage of overseas. And the country itself has a certain amount of cache as far as representing a quality product. Companies coming out of the US into international markets are likely to be perceived as quality brands.
An interesting point – technologies that might be considered “old” in North America might be considered newer in less developed countries. It might be a good way to make use of equipment that might be approaching “obsolete.”
There are barriers, of course, including the costs of new facilities and travel, cultural and language barriers, regulatory changes when dealing with foreign governments, differences in accounting or financial practices and organizational and structural changes that might be required based on the expansions.
China is probably the best example of a market in which the local regulations offer a lot of challenges to international companies, US or otherwise. It’s a big opportunity, but there are many examples of Chinese regulations being difficult for foreign businesses to deal with.
Another interesting point – customer service, a big differentiator for a lot of hosting companies, isn’t always a priority in the cultures of other countries.
He offered a strategy, however, for surmounting some of the roadblocks:
Recognize the markets that have the most potential for you as areas for expansion (in some cases that means looking at where some of your existing companies might be coming from internationally).
Do complete research on the laws and regulations – identify legal roadblocks – in the markets you intend to serve.
Evaluate the value of the dollar. Your $5 per month plan might be just too expensive for customers to afford in a potential market you’re thinking of approaching (presumably this could work the other way as well – there may be opportunities to increase).
Look at the local competition. How much is there? What are they doing really well? What aren’t they doing so well?
Look for ways you can gain a competitive advantage in entering the market.
Be patient, and commit to the market long-term.
About Liam Eagle
Liam Eagle has worked as a contributor to the Web Host Industry Review since its inception in 2000, and as editor since 2003. He has been editor of the WHIR's print magazine since its launch. His daily involvement in the gathering and reporting of Web hosting news and his regular interaction with Web hosting leaders gives him an uncommonly broad appreciation of the issues and tends facing the business. Through his WHIR blog, Liam spots Web hosting trends and offers opinions on the industry-wide impacts of major developments and the motivation behind big announcements. Follow him on Twitter @liameagle
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