It is clear that the web hosting industry is one of the most profitable internet businesses in the last decade, or at least it has become. A lot of internet providers or software developers changed their work models and started offering complete services.
This significantly increased the role of marketing and aggressive growth of the web hosting companies. It has become important not only to have a quality data center facility and non stop working people who maintain the business, but it has also become à la mode to provide complete solutions from A to Z.
This was the time when web hosting became adult and a real industry on the web. Then we witnessed buy-outs, mergers, web hosting became real property, being only virtual as business. From another side, we saw a real growth in the domain registration market too, right after the dot com boom finished.
The internet entrepreneurs realized that a successful business is when you meet good domain with quality service and a lot of SEO efforts. The upper level was gained also when the Web 2.0 (as category) has emerged and again re-scaled the picture of the hosting business.
Then it became really “saturated” – well said but in the recent months I started thinking that this is not really true. Why? The reseller hosting business – the way it started was not meant to pose real threat to its parent, but it really did in the past year.
We have seen ‘web hosts’ come and go as we have never before, and in any other business. Yes, it is not hard to start such occupation, yes it can make you some money, but…there are a lot of ‘but’s.
Service Provision Needs Quality
I think it needs, OK, we may start with reliability but then, if you want to offer something and people will pay for it, you better think of its quality! Nowadays, there are so many hosts that I am sure, no one can count the number. Well, may be some one can count the reliable, quality and honest hosts – and the list may be kind of complete but this can be done only be independent professionals – and there are no independent ones! Not anymore.
Saturated vs Overcrowded
These days, almost every designer, web developer or person who has knowledge related to web programing or system administration is ready to open web hosting company. And most of those people have the right knowledge and skills, don’t get me wrong. The problem is coming from the lack of time, money and dedication the people can blend and start good hosting business.
I am not going into debate what are the ‘most important principles’ of starting on the hosting market. But I would say that when starting something new, we need to calculate what we can give and what we can then take off that new thing. There is only one result when we go it and then loose our passion – disappointment for both, us the people we let down. And there people are our customers.
From where to continue…
I am not sure where the problem comes from – it can be from the lack of clear procedures of becoming a working company, complete absence of any industry standards or a lot of other legal issues that companies rely on and take advantage of.
But one thing I am sure of – playing with web hosting business as its simple game is very harmful and takes off the field the ‘side to side’ relations and trust. This make it rough to work, to handle and deal with.