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Australian Hosting Market Is Heating Up - Expect Consolidation Soon! Says IDC

  • 10 August, 2005 14:35

<p>NORTH SYDNEY, 10th August 2005 - IDC research into the Australian hosting market has revealed a competitive but fragmented market, particularly within shared hosting and the "mid-market" sectors. In the longer term, market consolidation is a strong probability. The telecommunications carriers and IT outsourcing firms dominate the high-end, "enterprise" segment of the Web hosting market, touting value propositions that position hosting as one element of broader end-to-end networking and computing solutions. The threat to such providers is that the control of the Web site will be taken from IT by the marketing department.</p>
<p>Collectively, the top 10 Web hosting service providers accounted for three quarters of the hosting market, led by WebCentral, Telstra and Hostworks.</p>
<p>"Web hosting market players would be increasingly aware of the many influences currently at play across their market space. As a discrete and still evolving market, the Web hosting sector is typified both by its relative immaturity as well as its inherent diversity and fragmentation. All facets of market activity will therefore continue to be subject to further change and development. At the same time, activities across a wider market spectrum are beginning to have a greater impact on the Web Hosting sector," said Phillip Allen, IDC Research Manager for Vertical Markets</p>
<p>Mr Allen also noted that "End user pursuit of business effectiveness, guaranteed system performance, and optimum risk management, will see many opt for a trusted partner to manage their hosting need, this demand should offer healthy opportunity across the Web Hosting community."</p>
<p>Full details can be found in the IDC study "Australia Hosting Competitive Analysis." This IDC study provides an overview of the competitive landscape in the Australian Web hosting services industry and comparative market share rankings. To purchase this document, please call the IDC sales team on (6-12) 9925-5300 or email</p>
<p>For press enquiries please contact:
Phillip Allen
Research Manager
Phone: 61 2 9925 2276</p>
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