Dec, 2003 : Frost & Sullivan: Hosts Need Focus to Survive

📅 December 11, 2003 - Positioning companies to accurately reflect their core competencies is vital for Web hosting providers to survive in a mature and highly competitive market that is expected to produce revenues of $4.23 billion by 2009, according to a report by research and analysis firm Frost & Sullivan (frost.com).

Frost & Sullivan said that decommissioning unprofitable data centers is one way to re-focus on a core competencies. Decommissioning helps reduce the utilization rates of remaining facilities, helping to achieve a breakeven point for data center loan payments and operating costs to make them profitable.
"Analysis might reveal that owning and operating data centers is not the core competency and that decommissioning them and running operations out of a colocation data center would be in the best interest of the hosting provider," said Jarad Carleton, industry analyst for Frost & Sullivan.
Frost & Sullivan added that hosting services providers should not be reluctant to outsource their data centers if it offers them better financial stability and profitability.
The firm also recommended that telecom companies that aim for a larger share of the Web hosting market should focus on offering customer service that is superior to that provided by their voice service divisions.
Frost & Sullivan's research was published in its U.S. Web Hosting Market Study, a part of Frost & Sullivan's annual IT market research.

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