New Analysis Says Web Hosts Will Look to "Bricks and Mortars" [...]

New Analysis Says Web Hosts Will Look to "Bricks and Mortars" for Growth

📅 April 29, 2002 - Many Web hosting companies looking to reposition themselves in the wake of the dot-com downturn will find new opportunities in traditional brick and mortar companies, according to a new report from Frost & Sullivan (frost.com).

The consulting and training firm said that refocusing on a more stable client base and making revenues a top priority would prepare both Web hosting firms and the industry itself for long-term growth. According to Frost & Sullivan, the hosting industry generated revenues of $4.6 billion in 2001 and is projected to reach over $20 billion in 2008.
The company also said an increase in demand for disaster recovery services should help the industry in 2002. "The result will be a surge of revenues for the U.S. Web hosting industry," analyst Jarad Carleton said.
Despite a projected increase in revenues, however, Frost & Sullivan warned that customer churn rates will still pose a problem for hosting firms. "Web hosting providers have repeatedly acquired customers from competitors because of customer service issues," Carleton said. "In general, the Web hosting industry has neglected addressing customer service issues, and they have suffered for it."

Reads: 1272 | Category: General | Source: TheWHIR : Web Host Industry Reviews
URL source: http://www.thewhir.com/marketwatch/rep042902.cfm
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