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?

What's Next in Web Hosting

  • 1.
    What’s Next inWeb Hosting? Isabel Wang and David Snead May 8, 2007
  • 2.
    Web Hosting AsWe Know It What's Next in Web Hosting? Data Centers Colo Cages Racks Dedicated Servers Reseller Accounts Shared Hosting
  • 3.
    One Simple FormulaWhat's Next in Web Hosting? Web Space + Bandwidth = Monthly Fee
  • 4.
    How To GetAhead? 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
  • 5.
    “What We’re Paying”What's Next in Web Hosting? (Source: The WHIR)
  • 6.
    What's Next inWeb Hosting? What We’re Getting Source: Google Trends
  • 7.
    What's Next inWeb Hosting? Meanwhile, In The Outside World… Web Hosting vs Wiki
  • 8.
    What's Next inWeb Hosting? As Serguei Says, Virtualization *IS* The Future Dedicated Servers vs Virtualization
  • 9.
    What's Next inWeb Hosting? New Form Factors
  • 10.
    “Where Do YouWant To Compute Today?” What's Next in Web Hosting? Source: Presentation by Microsoft Windows Live Architect James Hamilton
  • 11.
    “Your Data isEverywhere And Nowhere” What's Next in Web Hosting? Participants include Hostway, Softlayer and The Planet
  • 12.
    Large User Base= High Capacity Network? What's Next in Web Hosting? + +
  • 13.
    What's Next inWeb Hosting? New Assets
  • 14.
    “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 .”
  • 15.
    DreamHost vs TheWHIRWhat'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.
  • 16.
    Is Your ARPUIncreasing 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.”
  • 17.
    What's Next inWeb Hosting? New Product Units
  • 18.
    The Industry StandardApproach 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
  • 19.
    A Few OtherOptions 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
  • 20.
    What's Next inWeb Hosting? New Communication Strategies
  • 21.
    One Size Doesn’tFit 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
  • 22.
    Knowledge is Power:Three Case Studies What's Next in Web Hosting?