Updated Analysis of Cheap & Budget Hosting Market

Updated on Thursday, May 21st, 2009 at 12:37 pm

The Evolving Cheap Web Hosting Market
The budget web hosting market on the web is constantly changing. In the early days, only a handful of companies offered server space at really high prices. Presently, there are hundreds, if not thousands of hosting companies and resellers all over the world offering little slices of a server for a monthly fee. The web hosting industry has gone through a lot of changes during this time. In particular, the cheap web hosting market is constantly changing.

There are the big players like GoDaddy and others that could be described as the ‘Walmart’ of web hosting, offering a product that is acceptable, at a reduced cost because they’ve scaled so large. Between them and the lower tier of web hosting resellers, the kind that don’t answer emails and have a high churn rate or post a lot of questionable content, is an emerging ‘middle class’ of cheap web hosting. These are the companies that try to distance themselves from the less reliable web hosting companies, with whatever means they can.

As time moves forward, these three groups or tiers will continue to battle it out for customers. Whether it’s advances in technology, such as load balancing to allow more shared servers on a single machine or advances in other areas like better customer service, the web hosting industry is still constantly in a state of flux. There are trends that can be followed and watched that can provide valuable information about where the industry is going as a whole.

Current Budget Hosting Trends
The world of cheap web hosting is an ever evolving business. In this article, we will cover some of the more important areas of interest in the industry as a whole. This is an exciting time to be in the web hosting business – both for those who run the business and for consumers.

Green Web Hosting
Companies everywhere are ‘going green’ all the time and the web hosting industry at all levels is no different. A dedication to doing whatever can be done to help with environmental concerns is something that sets some web hosting companies apart. It’s been known for a while that the data centers around the world used to host the Internet’s content and direct the web traffic of the world consume a significant percentage of the world’s total power. With the continued growth of the Internet, even more power is being used all the time, making alternative, environmentally friendly, sources of energy more important than ever. The web hosting industry has picked up on this, implementing various levels of commitment to the safeguarding the environment.

Clustered Computing
The concept of ‘grid computing’ or ‘clustered computing’ has been around for over a decade. Until recently it hasn’t been commercially viable to offer web hosting via clouds of clustered computers. Today an increasing number of companies are opening clouds or grids, which is allowing would be webmasters to have the ability to pay as they go for only their particular usage. This can be both an economical and ecologically sound hosting method.

The analogy of buying web hosting as if one was buying electricity ( Ex: as a metered service rather than a monthly fee) is fairly common. As the number of web hosting companies that begin to offer this service increase, and the technology improves, this type of set-up for web hosting is likely to have a big effect on the web hosting industry as a whole.

Free Blog Hosting
Free blog hosting is a relatively new concept. The popularity of blogs and the idea of the web as a social place to connect with others of similar interest or geographic area is dramatically increasing. Therefore, the need for cheap web hosting that includes architecture or software for blogging, along with lots of options and Web 2.0 goodness, is going to be in more demand than ever.

Some cheap web hosting companies have actually discontinued selling traditional budget web hosting accounts and packages to concentrate on selling managed blog or forum hosting. This is something that has grown in demand, as people continue to desire an online presence and have their own ‘space’ on the web for blogs and domains. All of the new blogs and personal spaces could become a large market of new customers for web hosting companies since increased blog popularity can easily lead to new online business, thus requiring the services of a professional web hosting firm.

Web Hosting Add-Ons
Add-ons for purchased web hosting have been around since the beginning of the industry, but more companies have been using this as a way to get people to try out their service. For consumers, this makes it a great time to invest in cheap web hosting, as they will most likely get more value for their money then they would have just a few short months ago.

Another thing that changes over time is the type of add-on offered. Whether it’s a beefier server or extras like free email accounts or blog set-up, web companies are competing for business and offering more perks, even with their basic web hosting packages. This is great for people looking to purchase cheap web hosting. Now more than ever, consumers are likely to get more, such as value add-ons like free analytics, click-n-install applications, credit on Google Adwords, integrated domain name management or other tools that make managing an online prescence easier. This is likely to change as web hosting continues to evolve, but for now, it’s a great time to be on either a consumer or seller of web hosting.

Better Technology
As everything on the Internet continues to advance, the web hosting industry continues to evolve with new technologies and ideas all the time. This is good for companies and consumers. For companies, it provides an opportunity to offer more to offer customers, which can increase their business. For consumers, this climate creates a better value situation, as well as opportunities to try out new business ideas. As technology continues to increase, its effect on cheap web hosting might not be as dramatic as it is now, but it’s sure to have some impact on the web hosting industry overall.

Reseller Hosting
As more people continue to look for ways to earn extra income around the world, reseller hosting is becoming more popular on both sides of the web hosting fence. Web hosting companies like it because it allows them to increase their customer base without spending a lot on marketing or advertising. Consumers find that it gives them a way to increase their monthly revenue stream. As usage of the Internet increases and more people journey online to start new business ventures or supplement their current monthly incomes, reseller hosting continues to keep pace and grow in popularity.

The Mobile Web
As cellphones continue to get cheaper and more powerful, the number of people looking to capitalize on this is increasing. As a result, there is an even bigger need for cheap web hosting. Whether companies need a cheap second host to serve their content to mobile phones or consumers need a little storage place online for their photos or videos, the mobile web will have a huge impact on the cheap web hosting industry .

Web Hosting Boom
As more people try to get websites and content online, there’s going to be an increased demand for server space. Companies that realize this and get ready for the boom of customers will do well as long as their new customers are happy. For consumers, this means there will be fierce competition for your business, which is always a good way to ensure that the level of product and service available is well balanced. While a significant boom in web hosting isn’t absolutely guaranteed, many indicators point toward continued growth of the Internet as a whole. This will require more space at data centers all over the world as more people continue to put their content online.

The Future of Cheap Web Hosting
The future of cheap web hosting appears to be bright. As new technologies emerge and old technologies get better, it will become easier to offer less expensive hosting for the increasing number of people desiring an online presence in the virtual universe. This is a good thing for businesses that host a lot of small personal or hobby websites for a low monthly or yearly price already. For those that learn to adapt to the changing marketplace and do what they can to take into account the needs of their customers, the state of cheap hosting, and the industry as a whole, will continue to prosper.

For consumers, the great future of web hosting will allow for even more business opportunities to emerge. As there is more competition from companies offering web hosting solutions, prices and features included will change. Companies constantly need more business and are willing to do whatever it takes to stay apace of the market by offering better perks, discounts and excellent customer service.

Watching Budget Hosting Trends
As a best practice in the race to stay ahead in business, you need to stay informed, have more information than your competitors, and to use that information wisely. In the world of web hosting it’s no different. Those companies that make it a point to not only stay informed about their industry, but also get involved in the community around the industry of web hosting, will be the ones that will be able to adapt and react ahead of time. As a result, it is those companies that will prosper the most as market leaders.

There are many good reasons why a company might want to purchase cheap web hosting. The companies that buy cheap web hosting can also benefit by staying on top of all the changes in the industry, which will ultimately save time, effort and money. Watching cheap web hosting trends can offer any individual or business, both small and large, with an opportunity to be first to market with an idea or product which could ultimately be very profitable. Successful companies will use all the tools that they can – including cheap web hosting – to ensure they are ahead of the competition and growing their business.

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One Response to “Updated Analysis of Cheap & Budget Hosting Market”

  1. marketing mix (1 comments) Says:

    Great post. I agree the demand for web hosting is greater by the day, and competition is getting tougher, this is good for people looking to purchase web hosting, as hosting sellers need to stay competative and offer the best service in order to gain and keep their customers. I’m sure the future of hosting is going to get very interesting, time will tell. Cheers – Dennis@ 4 marketing p’s blog
    .-= marketing mix´s last blog ..The Marketing Mix Rightly Explained =-.

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