Jul, 2001 : Yankee Group Predicts Virtual Elimination of Collocation

📅 July 11, 2001 - A new report from the Yankee Group (yankeegroup.com) predicts that hosting has finally begun the drive toward fully managed services, and it believes this will ultimately result in the virtual elimination of collocation services.

The group predicts that vendors will differentiate themselves by specialty (vertical or horizontal), which will result in the industry competing less on communications transport and real estate, and more on management services.
"Hosting has performed strongly for the past several years due to physical undercapacity. Today there is enough physical capacity, but a strong undercapacity in services," said Andy Efstathiou, a program manager in Yankee Group's strategies research and consulting practice. "Ultimately, we believe that successful hosting providers will be focused on managed hosting services, not physical plant."
Efstathiou also cautions that "the market will react much more harshly on ill-considered initiatives, and therefore the cost of not getting it right will be higher in 2001, and the benefits for getting it right will be higher as well."
The report, "Managed Hosting Centers: Focus on Service, Not Space," discusses what managed hosting offerings will succeed in the marketplace in the years ahead, and is available immediately from the Yankee Group's E-Sourcing Strategies research and consulting practice.

Reads: 1123 | Category: General | Source: TheWHIR : Web Host Industry Reviews
URL source: http://www.thewhir.com/marketwatch/yankee711.cfm
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