What's Next in Web Hosting

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+ isabelwang 3 years ago
1. Speaking of Amazon’s auto-recommendations, Aggregate Knowledge drove $100 million in new sales on Overstock.com. They recommend next steps based on people’s navigation behavior, and their service is offered on a pay per performance basis. I think this would be a great match with any big hosting company.
2. Dan Kimball from ModernBill recently told me about RobotReplay. It’s AMAZING. You can watch videos of individual visitors’ mouse movements across your site.
3. Microsoft and Yahoo have both implemented cobranded versions of Krugle for their developer communities. Krugle is a search engine for code. For those of you who see developers as part of your target audience, something like this could be a value added service for customers, a market research tool to see what kinds of things they search for, and a revenue source from the ad impressions they generate. Back in the late 1990s, every web hosting company wanted to advertise on a site called Matt Scripts Archive. 10 years later, the paradigm has changed. It’s time for successful web hosting companies to play the role of Matt Scripts Archive.
+ isabelwang 3 years ago
I read recently that Web 3.0 equals 4C + P + V. The first C is commerce; getting from prospect to customer requires communicating with different audiences in different ways. Most web hosting companies have one single product page for everyone from experienced developers to first time site owners who have no idea what FTP means. If you think about how Amazon’s auto-recommendations are responsible for 30% of its sales, is that the most effective way?
+ isabelwang 3 years ago
OpSource is really intriguing. It’s founded by Treb Ryan, whose last company sold for more than a billion dollars less than a year after its launch. OpSource charges customers based on the amount of activity their applications generate – and customers get to define what counts as a unit of usage. Shopster is interesting too. They not only host online stores, but provide 750K wholesale products that customers can sell. They even ship directly to buyers.
+ isabelwang 3 years ago
Give us your credit card number and we’ll give you everything! That’s how the traditional web hosting pricing model works. Create unlimited email accounts. Host unlimited domains. Use unlimited databases. Most customers don’t need 3,000 email accounts. Instead of appreciating your generosity, they probably feel like they’re paying for what they don’t need. More importantly, your incentives aren’t aligned. The more resources they use, the more money you lose. Shouldn’t it be the other way around?
+ isabelwang 3 years ago
RyanAir’s annualized revenue is about 3.2 billion. Last year, they made $332 million from selling items other than air tickets. 10% is huge, but their CEO thinks he’ll be generating 100% of his future revenue from audience monetization. He envisions giving every single ticket away for the opportunity to sell to passengers.
+ isabelwang 3 years ago
Instead of giving customers web space on any particular server, Cleversafe breaks data into multiple encrypted slices and stores each at a different data center. It takes a majority of slices to reconstitute the original file.
+ isabelwang 3 years ago
Advertising-related technology innovation will help Google and Yahoo get more value out of each visitor. Web hosting related technology innovation may help you host each website more cheaply and reliably, but it will not increase the value of each customer.
+ isabelwang 3 years ago
Is container colo the next big thing? Facilities would be cheaper/faster to build than data centers with raised floor. James Hamilton argues that pre-filled containers will become units of deployment. Also, by using large numbers of small containers, you eliminate the need for super redundant power infrastructure. You don’t need your generators to last for days, because you can shift the load to another container within hours – especially if your apps are running on a virtualized platform.
+ isabelwang 3 years ago
The difference is, web hosting directories monetize each and every page view multiple times. Web hosting companies, on the other hand, generate zero incremental revenue from prospects who don’t sign up, or repeat visitors from current customers.
+ isabelwang 3 years ago
More users used to equal more bandwidth consumption, but with P2P, the situation is reversed. This approach seems to be gaining traction: VeriSign bought Kontiki last year, and Akamai bought RedSwoosh recently. Both are partners of Joost, the P2P Internet TV startup. With P2P, customers become real assets - not just in terms of revenue generation.

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What's Next in Web Hosting - Presentation Transcript

What’s Next in Web Hosting? Isabel Wang and David Snead May 8, 2007
Web Hosting As We Know It What's Next in Web Hosting?
- Data Centers
- Colo Cages
- Racks
- Dedicated Servers
- Reseller Accounts
- Shared Hosting
One Simple Formula What's Next in Web Hosting? Web Space + Bandwidth = Monthly Fee
How To Get Ahead? What's Next in Web Hosting?
- GoDaddy: 1000 GB for $6.99
- DreamHost: 1600 GB for $7.99
- 1&1: 2500 GB for $7.49
- LunarPages: 2500 GB for $6.95
- iPowerWeb: 3000 GB for $7.95
- BlueHost: 3000 GB for $6.95
- PowWeb: 3000 GB for $5.77
“What We’re Paying” What's Next in Web Hosting? (Source: The WHIR)
What's Next in Web Hosting? What We’re Getting Source: Google Trends
What's Next in Web Hosting? Meanwhile, In The Outside World… Web Hosting vs Wiki
What's Next in Web Hosting? As Serguei Says, Virtualization *IS* The Future Dedicated Servers vs Virtualization
What's Next in Web Hosting? New Form Factors
“Where Do You Want To Compute Today?” What's Next in Web Hosting? Source: Presentation by Microsoft Windows Live Architect James Hamilton
“Your Data is Everywhere And Nowhere” What's Next in Web Hosting? Participants include Hostway, Softlayer and The Planet
Large User Base = High Capacity Network? What's Next in Web Hosting? + +
What's Next in Web Hosting? New Assets
“Wal-Mart With Wings” What's Next in Web Hosting? BusinessWeek: “Ryanair's profits for the six months ended Sept. 30 soared to $422 million, on sales of $1.6 billion … Ryanair uses its website, with 15M unique visitors/month, to boost ancillary revenues. The company gets commissions from sales rental cars, hotel rooms, ski packages, and travel insurance. For the year ended Mar. 31, such ancillary revenues rose to $332 million .”
DreamHost vs TheWHIR What's Next in Web Hosting? Fun fact: The 10 highest traffic web hosting providers each have more reach than the 10 highest traffic web hosting directories.
Is Your ARPU Increasing by 42% Per Year? What's Next in Web Hosting? Morgan Stanley Says: “Significant targeting / conversion improvements could bolster annual global revenue per unique user of $9 for Google (+42%) and $10 for Yahoo! (+29%) 2-3x in next 5 years.”
What's Next in Web Hosting? New Product Units
The Industry Standard Approach What's Next in Web Hosting?
- GoDaddy: 1,000 email accounts
- DreamHost: 3,000 email accounts
- 1&1: 2,500 email accounts
- LunarPages: Unlimited email accounts
- iPowerWeb: 2,500 email accounts
- BlueHost: 2,500 email accounts
- PowWeb: Unlimited email accounts
A Few Other Options What's Next in Web Hosting?
- SaaS Apps: Pay Per Seat
- Amazon EC2: Pay Per Hour
- Amazon S3: Pay Per GB
- OpSource: “Success Based Pricing”
- Shopster: Hosting + Drop Shipping
- MySpace: Free; made $900M in Advertising
What's Next in Web Hosting? New Communication Strategies
One Size Doesn’t Fit All What's Next in Web Hosting? Commerce: what we’re aiming for Content: reaches out to prospects Context: different info for different audience Community: gets multiple parties involved in conversation Personalization: the better to deliver the most effective sales pitch for every customer Vertical Search: better customer service + possible monetization opportunity Source: Read/Write Web’s Web 3.0 equation
Knowledge is Power: Three Case Studies What's Next in Web Hosting?