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Is web hosting a low end of IT industry?
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Is web hosting a low end of IT industry?

verovero Member, Host Rep

While being quite an essential service, web hosting seems to be not of much value when it comes to comparing an IT industry companies. Even EIG lags far behind while looking at Forbes top digital 100. Of course, sophisticated, complex services, like AWS, are at another level.

Do you think days of conventional web hosting is over?

And question to current web hosting providers - if you were about to start your business right now, would you offer the same product or wouldn't even look back?

Comments

  • MrRadicMrRadic Member, Host Rep, Veteran

    EIG and AWS target completely different types of customers and have major differences in margins.

    EIG thrives on people paying for a service and not using it, where AWS is per usage based with mega margins built in.

  • @vero said: Do you think days of conventional web hosting is over?

    Not even, most sites out there run on wordpress, you just happen to find out that there is a huge world beyond cpanel >.>

  • verovero Member, Host Rep

    @duckeeyuck said:

    Not even, most sites out there run on wordpress

    True. But it is wide spread as any other common commodity or service - anyone can sell web hosting, anyone can buy and spin WP site. There's no added value in offering such service, EIG numbers speak for themselves. Not sure how profitable LightSail is, but even it's a complete loss for Amazon, quite obvious which one of these providers is doing better.

    There is no added value in (shared) web hosting itself, so the best selling are the most cheap ones. No good for provider, as he is not generating enough revenue, not good for customer, because provider will be looking how to cut costs. So providers, while offering this legacy type of service and hoping that customers will stay with them despite yearly price increases, are just losing precious time and miss opportunities.

    IT industry is the one changing very fast. Can't expect to compete when offering basically unchanged service for 20 years.

  • verovero Member, Host Rep

    Here's what I was talking about and what can make discussions like "cPanel vs DA" to disappear in the future.

  • risharderisharde Patron Provider, Veteran

    @vero I kind of feel so but I am not a provider. I get the impression that if you make it big on mass makes it more profotable / rewarding but not if its hosting 10 clients on the low end side of things. Again if you are offering a premium service and actually get people to purchase, that sounds rewarding.

  • verovero Member, Host Rep

    @risharde said:
    I get the impression that if you make it big on mass makes it more profotable / rewarding but not if its hosting 10 clients on the low end side of things.

    Absolutely. There's even no other way to do business while offering conventional web hosting without trying to sell as much as possible using various marketing tricks. If we talk about traditional web hosting as a product, then it would be at its decline stage of life cycle, I think. When we see news about the actual growth of this industry, it's most likely because of modern services like Gatsby Cloud or similar (even AWS, if we can still call it new).

  • deankdeank Member, Troll

    Lowest of end of any job, this is, when you are at mercy of PMSing boys.

    Reach the level of RackSpace, and you can claim that you've made it.

    Needless to say, believe in the Jar and the teachings of Lard.

  • I think traditional shared/reseller hosting is going to be around for a long time, and the same but to a lesser extent for VPS/dedis. cPanel + Softaculous is simply so easy to pick up, anyone with an inkling of a will could learn the basics (like me), and the big boys don't really have a competing product.

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