Session S8  The Shift in Web Hosting Are You on the Up Side? David Snead ( [email_address] ) Isabel Wang ( [email_address] )
Overview Do-it-yourself vs do-it-for-me Front office/back office convergence Ping/power/pipe vs new business models Hardwa...
Web Hosting Targets DYI Audience <ul><li>Large amounts of bandwidth and web space </li></ul><ul><li>Large numbers of datab...
Amazon: Do-It-For-Me Purchasing <ul><li>“ Customers like you” auto-recommendations are responsible for 30% of Amazon’s sal...
Google: Do-It-For-Me Apps <ul><li>Google Calendar, Google Talk and Google Docs & Spreadsheet are auto-integrated with Gmai...
eBay: Do-It-For-Me eCommerce <ul><li>All-in-one store building and online advertising process </li></ul><ul><li>Listing to...
<ul><li>Online (and offline) business encompasses… </li></ul><ul><li>Personal productivity/data management </li></ul><ul><...
eBay: End-to-end Service <ul><li>Market research: competitive sales/pricing data for $10/month </li></ul><ul><li>“ Feature...
Shopster: TOTAL Solution Provider
More than Ping/Power/Pipe  <ul><li>Alternatives? </li></ul><ul><ul><li>Pay per seat? (SaaS) </li></ul></ul><ul><ul><li>Pay...
Give it Away for Free? <ul><li>Google/Yahoo! will double or triple revenue per user within 5 years with improvements in ad...
Ryan Air: “Wal-Mart with Wings”  <ul><li>$300 million+ out of $3 billion annual revenue from sales of 3 rd  party products...
Hardware vs Software  <ul><li>New technologies reduce downtime and data loss </li></ul><ul><ul><li>Virtualization </li></u...
Are You a Software Company Too?  <ul><li>Cisco: “We’re a software company wrapped in steel” </li></ul><ul><li>eBay: 100,00...
BT: Phone Co or Software Platform? <ul><li>Nicholas Carr: Software kills hardware </li></ul><ul><li>Web 21C API gives .NET...
Introducing the SLDN! <ul><li>With SoftLayer’s open API, developers can  integrate provisioning, remote reboot, bandwidth ...
Knowledge (via Software) is Power <ul><li>Google CEO: “personalization is the future”   </li></ul><ul><li>Quantcast CTO: “...
Marketing is NOT Game of Numbers <ul><li>Amazon: auto-recommendations responsible for 1/3 of sales </li></ul><ul><li>Aggre...
Upcoming SlideShare
Loading in …5
×

The Shift in Web Hosting: Are You on the Upside

1,589 views
1,472 views

Published on

My slides for Spring ISPCON in Orlando

Published in: Business, Technology
1 Comment
3 Likes
Statistics
Notes
  • Try http://anhostinghost.blogspot.com/ for a good hosting
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Views
Total views
1,589
On SlideShare
0
From Embeds
0
Number of Embeds
45
Actions
Shares
0
Downloads
118
Comments
1
Likes
3
Embeds 0
No embeds

No notes for slide

The Shift in Web Hosting: Are You on the Upside

  1. Session S8 The Shift in Web Hosting Are You on the Up Side? David Snead ( [email_address] ) Isabel Wang ( [email_address] )
  2. Overview Do-it-yourself vs do-it-for-me Front office/back office convergence Ping/power/pipe vs new business models Hardware vs software Knowledge is power
  3. Web Hosting Targets DYI Audience <ul><li>Large amounts of bandwidth and web space </li></ul><ul><li>Large numbers of databases and email accounts </li></ul><ul><li>CGI-BIN/Perl/PHP… </li></ul><ul><li>“ Install dozens of free apps” </li></ul><ul><li>Google/MSN/Yahoo credits </li></ul><ul><li>Customer must assemble ingredients into solution </li></ul>(My friend Irakli makes amplifiers by hand!)
  4. Amazon: Do-It-For-Me Purchasing <ul><li>“ Customers like you” auto-recommendations are responsible for 30% of Amazon’s sales </li></ul><ul><li>Similar technology from Aggregate Knowledge helped Overstock.com generate $100M in additional revenue </li></ul><ul><li>It’s profitable to help customers choose! </li></ul>
  5. Google: Do-It-For-Me Apps <ul><li>Google Calendar, Google Talk and Google Docs & Spreadsheet are auto-integrated with Gmail; nothing to install </li></ul><ul><li>Presentation app on its way </li></ul><ul><li>Coming soon: Google Checkout and Google Base integration? </li></ul><ul><li>BTW: Google Apps now has Partner Edition for ISPs </li></ul>
  6. eBay: Do-It-For-Me eCommerce <ul><li>All-in-one store building and online advertising process </li></ul><ul><li>Listing tool auto-generates product descriptions based on ISBN </li></ul><ul><li>Built-in traffic from peer-rated buyers </li></ul>(Even customers)
  7. <ul><li>Online (and offline) business encompasses… </li></ul><ul><li>Personal productivity/data management </li></ul><ul><li>Collaboration/information sharing </li></ul><ul><li>Vendor & inventory management </li></ul><ul><li>Customer & transaction management </li></ul><ul><li>Sales & Marketing </li></ul><ul><li>SMBLive CEO Matt Howard says web services providers should be facilitators for these “five conversations” </li></ul><ul><li>Check out BTTradespace.com! </li></ul>Front Office/Back Office Integration
  8. eBay: End-to-end Service <ul><li>Market research: competitive sales/pricing data for $10/month </li></ul><ul><li>“ Featured items from favorite sellers” newsletter </li></ul><ul><li>Print postage/mailing label, request pick-up and track packages from PayPal interface </li></ul>
  9. Shopster: TOTAL Solution Provider
  10. More than Ping/Power/Pipe <ul><li>Alternatives? </li></ul><ul><ul><li>Pay per seat? (SaaS) </li></ul></ul><ul><ul><li>Pay per hour? (Amazon EC2) </li></ul></ul><ul><ul><li>Pay per item requested from web server? (Amazon S3) </li></ul></ul><ul><ul><li>Pay per transaction? Pay % of ecommerce proceeds? (eBay) </li></ul></ul><ul><li>Overselling </li></ul><ul><ul><li>Billing is NOT aligned with customer activity </li></ul></ul><ul><ul><li>The more resources customers use, the more hosting providers lose! </li></ul></ul><ul><li>Overselling </li></ul><ul><ul><li>Billing is NOT aligned with customer activity </li></ul></ul><ul><ul><li>The more resources customers use, the more hosting providers lose! </li></ul></ul><ul><li>Alternatives? </li></ul><ul><ul><li>Pay per seat? (SaaS) </li></ul></ul><ul><ul><li>Pay per hour? (Amazon EC2) </li></ul></ul><ul><ul><li>Pay per item requested from web server? (Amazon S3) </li></ul></ul><ul><ul><li>Pay per transaction? Pay % of ecommerce proceeds? (eBay) </li></ul></ul><ul><li>Overselling </li></ul><ul><ul><li>Billing is NOT aligned with customer activity </li></ul></ul><ul><ul><li>The more resources customers use, the more hosting providers lose! </li></ul></ul>
  11. Give it Away for Free? <ul><li>Google/Yahoo! will double or triple revenue per user within 5 years with improvements in ad targeting technology </li></ul><ul><li>Average hosting provider will not see ARPU growth of 42% per year :( </li></ul>Says Morgan Stanley 2006 2011
  12. Ryan Air: “Wal-Mart with Wings” <ul><li>$300 million+ out of $3 billion annual revenue from sales of 3 rd party products </li></ul><ul><li>CEO wants to make all flights free within 10 years; audience monetization more profitable than ticket sales </li></ul>
  13. Hardware vs Software <ul><li>New technologies reduce downtime and data loss </li></ul><ul><ul><li>Virtualization </li></ul></ul><ul><ul><li>Grid hosting </li></ul></ul><ul><ul><li>Distributed storage </li></ul></ul><ul><ul><li>P2P content delivery </li></ul></ul><ul><li>“ Fast hardware replacement” SLAs losing relevance. The question is not how to stay online, but what to do online </li></ul>
  14. Are You a Software Company Too? <ul><li>Cisco: “We’re a software company wrapped in steel” </li></ul><ul><li>eBay: 100,000 lines of new code every 2 weeks </li></ul><ul><li>Software encompasses more than end user apps like PhotoShop and PowerPoint. It provides framework for business processes </li></ul>
  15. BT: Phone Co or Software Platform? <ul><li>Nicholas Carr: Software kills hardware </li></ul><ul><li>Web 21C API gives .NET. Java & PHP developers access to BT’s underlying telecom network </li></ul><ul><li>Capabilities exposed through web services include SMS, voice call, conference call, mobile subscriber location… </li></ul>
  16. Introducing the SLDN! <ul><li>With SoftLayer’s open API, developers can integrate provisioning, remote reboot, bandwidth graphs, etc into control panels, third-party applications and even corporate intranets </li></ul><ul><li>“ SoftLayer is evolving into a software oriented company” </li></ul>
  17. Knowledge (via Software) is Power <ul><li>Google CEO: “personalization is the future” </li></ul><ul><li>Quantcast CTO: “eCommerce is destiny” </li></ul><ul><li>MIT Media Lab: can predict your schedule with 79% accuracy </li></ul>
  18. Marketing is NOT Game of Numbers <ul><li>Amazon: auto-recommendations responsible for 1/3 of sales </li></ul><ul><li>Aggregate Knowledge: drove $100M in additional sales on Overstock.com </li></ul><ul><li>Robot Replay: captures website visitors’ mouse movement – what if data were used to optimize site config on the fly? </li></ul><ul><li>Staying competitive = thinking beyond one-size-fits-all ads, website content & service plans </li></ul>

×