European Hosting Providers Battle for Revenue and [...]

📅 August 17, 2001 - Annual European service provider e-business infrastructure expenditures will grow 34%, from $3.5 billion to $4.7 billion between 2001 and 2005, according to a market research study released yesterday by Infonetics Research (infonetics.com). The study is the third of three in-depth studies Infonetics Research is publishing this year on e-business infrastructure.

"Hosting providers in Europe are facing a challenging and sometimes hostilemarketplace right now, but they're focusing on the future by sellinghigh-margin dedicated hosting services to medium and large businesses," saidanalyst Jeff Wilson, Infonetics' executive director. "They will try toleverage technologies that they can add incrementally, and that generaterevenue immediately, like SSL acceleration, security products, and storagenetworking devices."
The 139-page, 76-exhibit study presents the product requirements andimplementation plans through June 2002 of service providers operating inEurope who offer shared hosting, dedicated hosting, or co-location services.
E-business hosting services are either all or a large part of respondentbusinesses. Examples of data found in this study:
Rollout of new services, security, and service provisioning are thetop technical challengesRevenue/profitability is the top business challengeBy 2002, respondents plan to invest in technologies that add revenueand decrease operations costs
The study also includes a 5-year European forecast of service providerexpenditures through 2005 for e-business servers and products (switching,caching, content acceleration, load balancing, storage, bandwidthmanagement, security), including breakouts for switching, caching, andcontent acceleration expenditures.