Notes

Is it possible to Believe It? With all the Financial Markets inside Turmoil, the Hosting Industry Continues to Thrive!
I are participating in the next annual Hosting Modification Summit in sunlit Las Vegas today plus have just took in to some heartwarming news from Dan Golding the brain of Tier1 Analysis. Dan kicked off the morning along with his Keynote "Managed Hosting and Colocation in 2009 and even beyond. "

Serta described the Managed Hosting and colocation sector as "on fire" The market is humming instructions incredible growth, outstanding execution, blowing aside expectations. I must say, looking back again 5 yrs ago following the tech bubble collapse, I still cannot believe how strong the sector rebounded back from those really hard times.

The presentation was concentrated on another, and a longer view for the sector. The HTS meeting is packed this year using the most significant attendance of information middle owners, Managed hosting and colocation firms ever to attend this conference.

Demand stable or increasing inside all markets, driven largely by capex constraints and greater awareness and options. Supply is growing slower in the particular past 18 several weeks as the credit crunch has hurt the particular ability of providers to expand ( it is quite hard to get mortgages, loans simply on new information center projects). Growth build-out of pre-existing shells is happening, although very little upon spec. Demand Growth of 15% in 2008. (Steady and growing in the out years) However right after supply growth peaked at 7. five per cent in 2007 present growth now has slowed to 5%

Dan believes of which supply growth can pick back up again this summer. A conclusion - supply is definitely tight, demand is usually high and developing - this extremely good news regarding the industry.

Some other trends:
The green initiatives are more than the trend because data center proprietors who don't physique out how to maximize power effectiveness will be decorated as villains.

Traffic and services consumption are linked while Internet traffic progress have been doubling every single year (2005-2007).

here : 2011 - the summer season - internet site visitors can get an exaflood - it will be coming with a new breed of applications (set to boxes HD Video, games, and so on. ) that will drive new traffic patterns. Growth influenced by consumer broadband + applications (HD video) applications, which in turn may drive demand regarding Managed Hosting as well as Colocation Services:

Maintained Hosting Services Features

Incredibly fast expansion 30%+
$10 Billion worldwide revenue simply by end of 2008
We'll keep growth pace until with least 2011

Good news, Dan believes that will fears about slowdown in growth happen to be wildly overblown.

Exactly why is managed hosting expanding so fast?

Massive shifts - brand-new breed of THAT employees that embrace outsourced workers
Growth found in internet applications (SaaS) The acceptance and growth of web browser based applications have been enormous!
Ambiguity between web hosting and managed hosting provides turned positive

Dan's Key success components managed hosting and even companies

High perimeter services - and not way too many -- it is thus tempting in the day to day time business when the customer arrives plus wants to come and give all of us money for a good unique on-off service - at this stage the answer has to be no or even do it through the partner.

High amount of support shipping is important - may cut pay in support people or outsource support in order to save a nickel - actually selling is support. Keep doing this okay or else you will head into a poor location - just like examples in retail want Home Depot in addition to others who include struggled with client service challenges - the whole enterprise starts to glide to the toilet - High levels of support delivers some sort of strong word of mouth buying spiral

Final thoughts, the industry is healthy and may carry on to thrive. Buyers are looking regarding the one cease shop, one firm that is some sort of trusted advisor in order to the customer. As customers place more eggs in the Managed Service container, the industry should tighten-up those SLA's. Today some elements of the industry include been leaving along with loose SLA's - as customers acquire more sophisticated and have more on the line, they will turn out to be more demanding and require robust multi-component SLAs and back-it up.
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