Last Updated: May 25, 2012

January 16, 2009

Web Hosting Outlook for 2009

The world of web hosting saw it all in 2008 from the explosion of technologies such as virtualization and cloud computing to highly advanced platforms like Windows Server 2008.  What can we expect from 2009?  If the past couple of years were any indication, there will be a few notable advancements this time around as well.  Here is what some of the experts have to say about the new year in web hosting.

Forecast: Cloudy Days Ahead

Daniel Foster, cofounder of web hosting provider 34SP, believes that cloud computing will grow even more sophisticated in 2009.  He also believes that companies who specialize in traditional hosting will continue to thrive.  As far as 34SP goes, Foster anticipates that the company will continue to experience growth and provide better web hosting services to its new and existing customers.  34SP is one of many companies that helped bridge the gap between advanced and affordable web hosting solutions, offering services that range from dedicated hosting to server colocation.

Recession Proof?

Frank Stiff, President of Cheval Capital, has an entirely different outlook on the web hosting industry for 2009.  An investment banker for more than 20 years, he has assisted companies in various sectors with financial services from Nextel Communications and NTT/Verio to Fidelity Capital and Rackspace Managed Hosting.  Stiff predicts that there will be more bad news in 2009 but does not believe that web hosting will be hit as hard as many other industries.  He followed up by saying that hard times are likely to result in a reduction in new hosting clients and an increasing rate of customer losses.  On a lighter note, Stiff remains hopeful that the plethora of web hosting companies will enable the acquisition numbers to remain stable.

The Strong Will Survive

As a part of NaviSite's marketing and product management team, William Toll also had a few thoughts on web hosting for the new year.  Toll stands confident that the conventional hosting sector will undergo dramatic transformations in 2009.  He states that the current economic conditions will put smaller companies in jeopardy as they struggle to keep pace in this demanding and highly competitive market.  Toll believes that more businesses will come to realize the importance of exposure and seek more quality solutions.  He ended by hinting that slow server response, blocked IP addresses, poor customer service and billing issues will inevitably drive businesses away from low-end web hosting solutions.  NaviSite specializes in dedicated and managed hosting solutions and Toll reports that the company noticed a significant increase in new customers over the past year.  It's no surprise that he expects the provider to benefit greatly from all the advancements of web hosting technology in 2009.

What does the web hosting industry hold for 2009?  Will companies continue to see an increase in new clients?  Will the hangover from the economic crisis explode onto the web?  We can all make predications but only time will tell.  Considering that technological advancements are a given, one can only assume that as a whole, the market will be just fine and continue to flourish.

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