Are they way too many web hosting companies.

Smokey

New member
Ya know now days everywhere you turn around there is another web hosting company. I myself are in the business and I wonder sometimes if it is a dying business, becasue of the ungodly amount of companies. Don't get me wrong business is great for us , but I would like to see what others thinks about this.
 
It's definately not a dying business (probably the wrong choice of words, or I'm just not smart enough to understand ;)) because it will always be needed, at least for a very long time as far as I can see. But I do think that it is becomming harder and harder for customers to find a quality host to situate themselves with. There are so many hosts that are in the business because they see it as easy and profitable without doing much research. Hosting is a business that requires dedication and effort, and it is very hard for consumers to find a host that displays both of those qualities.
 
Ya I probably worded it a little wrong. I agree with you about the didication and effort. I am on the pc about 14 hours a day taking support calls. I barely have time to do what I love best and that is designing. I guess its almost time to hire someone. I feel that is the worst part. I am not very trusting and finding someone to trust with your whm, cpanel, and customer relations is not easy for me.
 
It's not supposed to be easy. You'll feel better about it when you know that you have found the right person. Trust is one of the biggest things that comes into play with "virtual employment".
 
Smokey said:
Ya know now days everywhere you turn around there is another web hosting company. I myself are in the business and I wonder sometimes if it is a dying business, becasue of the ungodly amount of companies. Don't get me wrong business is great for us , but I would like to see what others thinks about this.

Its an extremely competitive business, which is extremely saturated but is very profitable for many. :agree:
 
Hosting is not a dying business. As long as the Internet (WWW) exists, there will always be a need for websites to be up and running. Since there are literally thousands of website hosting companies, it gives owners of websites great flexibility in choosing a package. And, because there are thousands of companies, it allows there to be great competition in price, packages offered, and customer service.
 
The industry will only continue expand, with Ovum hinting a a growth spurt in the industry, boosting it to $46.9 billion in 2006. Previously, the web hosting industry was generating $10.3 billion back in 2001 and has without question come a long way since then. :)
 
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The fact is not there are too many web hosting companies. The Situation is there are too many bad web hosting companies. The ankle biters in this industry that will oversell beyond belief gives the industry a bad name.
 
The ankle biters in this industry that will oversell beyond belief gives the industry a bad name.
That may be the case, but here's the fact: there are many great website hosting companies with very competitive deals. There are definately people that will try to take advantage of you, but that happens in every industry, not just hosting.
 
webfreak08 said:
That may be the case, but here's the fact: there are many great website hosting companies with very competitive deals. There are definately people that will try to take advantage of you, but that happens in every industry, not just hosting.

I couldn't agree more with you webfreak08. It's just a matter of taking the time to research a certain webhost. Whenever I purchase something online I am very weary, and try to research the business/individual as much as possible.
 
There are many but because hosts tend to fluctuate in quality and there are so many factors in what makes a host "good" (from the performance of servers to the performance of support) that this keeps the industry alive with players.

Roj
 
Smokey said:
Ya know now days everywhere you turn around there is another web hosting company. I myself are in the business and I wonder sometimes if it is a dying business, becasue of the ungodly amount of companies. Don't get me wrong business is great for us , but I would like to see what others thinks about this.
The fact that there are too many companies around is good. Not only competition is great, but it would eventually eliminate those who run companies in a poor style and leave only those who know what it takes to operate a venture.
 
It is a crowded industry - but so it the fast food industry and many others. But there is always space for another competitor. Find your target market and cater it as good as possible with your products. If your business model is right and if you have the right skills and good funding it can be a rewarding business.

Christoph
 
nsusa said:
It is a crowded industry - but so it the fast food industry

I don't think that the hosting industry can be compared to the fast food industry. First of all, the fast food industry doesn't seem all that crowded. Sure, there is competition, but nowhere near the amount that a hosting company faces. Fast food restaurants have a storefront, so as you're driving down the street, you can just pull over and grab a burger. Hosting companies don't have that convenience. People have to find you, or you have to find them. It's a lot harder to stand out and struggle to survive.
 
Webhosting industry will never die. I agree with Gmsmootie that there is not too many hosting companiesm but too many bad hosting companies.

On the other hand, thanks to the forums like this one, bad companies quickly become publicly known as bad ones.

Unfortunatly, there are people who are not checking those things on the Net before thay purchase services, but I believe that such things are happening just one time.

After first bad experience, one will check his/her second provider.
 
Xcel_Hosting said:
It's definately not a dying business (probably the wrong choice of words, or I'm just not smart enough to understand ;)) because it will always be needed, at least for a very long time as far as I can see. But I do think that it is becomming harder and harder for customers to find a quality host to situate themselves with. There are so many hosts that are in the business because they see it as easy and profitable without doing much research. Hosting is a business that requires dedication and effort, and it is very hard for consumers to find a host that displays both of those qualities.

I agree,

It is not a dying business because there is a strong demand for web hosting currently. However, it is very hard to keep customers for existing hosting companies as there is extreme competition. Thus, hosting customers are almost continuously looking for better deals and this shows a great need for web hosting related forums and web hosting directories.
 
There are a lot of hosting companies. While this may be bad for hsoting companies, competition is good for consumers, keeps prices competitive. But that is just one Captitalist's openion.
 
The reason there is so many web hosting, is one it can be a very profitable business if its run correctly with profit margins of round 40-50% which will bring a lot of people into the industry. Two the cost of entry into the hosting market is minimal a dedicated servers, some software and a web site and your basically ready to go, which will cost you a couple hundred bucks. As long as these two factors are in places you'll see more and more hosting companies start up.
 
As a few have said on here, your start into the hosting industry takes a lot of dedication and time. Many who venture into it see it as an easy money maker, and don't give it the effort it takes to become successful. Even though there are thousands of hosting companies out there, there are only a select few that are actually successful in my eyes. To me, in order to be trully successful, you have to NOT be in the business for just money; you have to be in it to give back to the hosting community, your clients (and even their friends), and especially the people that make your business what it is ... the employees. Without that, to me at least, you are nothing more than just another company higher up looking for a get rich quick scheme.

Hope nobody takes offense to this, it's just my $0.02.
 
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