Nov, 2001 : Worldport Roundtable Highlights Future Hosting Trends


📅 - Worldport Communications, Inc. (wrdp.com), announced findingsfrom its industry roundtable held last week in London that highlight thefuture trends in Web hosting. Industry thought leaders and analysts gatheredto discuss the changing trends in the managed services industry and theissues surrounding the consolidation in the market.

The discussion, chaired by Geoff Pflaumer, president of the Co-location andHosting Association, focused on several industry issues, including:Outsourcing and managed services are here to stay; the key to success willlie in the capability to deliver end-to-end integrated solutions at the highend; and the industry needs to provide a higher level of confidence aboutthe longevity and financial strength of the service providers themselves.
Panelist Michelle Senecal De Fonseca, vice president of business developmentat Worldport explained that the present difficult economic period andcompetitive market, although dynamic, has allowed the more commerciallysavvy and customer oriented companies in the industry to thrive. "Companiesneed to concentrate on their core assets and offer specialized services.Clearly the medium to large corporations interested in outsourcing want todeal with as few partners as possible, so our market has to consolidatearound a more complete range of services," said De Fonseca.
Nicholas Jeffery, a panelist and Worldport's vice president of sales andmarketing, underlined the importance for companies in the IT market toimplement as much change as possible. He stressed that the emphasis onWeb-enabled business channels has changed and that companies need to beassured that their sites or applications are 99.9% secure and available - anessential role for hosting. "In the past year, the main concerns ofcompanies considering outsourced hosting were the technology and securityimplications, and while security is obviously of prime importance, financialreassurances from the service providers and Service Level Agreements are nowthe key drivers," said Jeffery.
Scott Smith, director of Internet Strategies Europe for The Yankee Grouphighlighted that there has been a significant shift in demand for hostingservices. With the re-emergence of former "dot-com" companies onto thecorporate scene, these IT business-aware individuals understand theadvantages of outsourcing to both empower their business offerings andregain control by eliminating the need for lengthy internal IT decisions."Companies today have a renewed concern for the security and resiliency oftheir systems and data; outsourcing provides a unique means of ensuring thesecurity of your business," said Smith.
The panel summarized that the critical success factors for the hosting andmanaged services companies are that companies must have rock-solidfinancing, less than ten data centres, little or no debt, and be targetingthe medium- to large-sized customers with an end-to-end solution.

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