Web hosting market sizzling

Web hosting market sizzling

The Web hosting market is sizzling thanks to an increasing number of companies that are heading online and placing their Web site worries in the hands of outsourcers, market research firm IDC says.

Revenue for the Web hosting market more than doubled in 2000, as companies such as Exodus, IBM Global Services and Genuity shared a $US4 billion pie, according to an IDC report released this week. Melanie Posey, manager for IDC's Web hosting program, says revenue is expected to top $20 billion by 2004.

"A lot of people have been saying that, 'Oh well, all the dot-coms are dead so therefore the bricks-and-mortar companies can stop spending on their Web initiatives because the dot-coms aren't going to eat their lunch after all,'" Posey says. "But that's just stupid because a lot of the dot-coms are gone, but the Internet is still there. So [companies] still have to do something."

As more companies move online, they're turning to Web hosts for their infrastructure needs, Posey says. But she notes that Web hosts will need to provide managed services and other extras to stay competitive in the fast growing market.

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