Jak wygląda branża hostingowa? Świetny post na webhostingtalk.com

If you read my other posts you will exactly feel that mood in my replies.

Honestly, I think some are looking an exit.

Hosting is not what it was before. Its a terrible business to start today. Why do I say this?

Because it requires to much investment for to little profits and way to much work to keep those little profits going on.

If you compare this to other industries, the money some are making vs their spending is a joke. You could sell juice on the streets and your ROI per user would be higher than per hosting account.

So I can totally understand some people may be feel depressed or its rather they don’t love what they do anymore. And its not even related to technology anymore, but probably hosting. People demand to much for no money.

Companies doing mobile apps or games are making hell of a lot more money than hosters and hosting is also getting extremely complicated in terms of regulations and extra costs which they can’t pass down to users.

The US government is also putting the last nail on US tech companies, its seems hosting is moving towards Europe lately, with all the NSA scandal and the extreme regulations and taxes on tech companies, suddenly the big hosting companies are in Europe and they are dirty cheap. I’m sure many US companies have lost a big chunk of their customers which don’t want to host in the US anymore.

Everyone here is partially to blame. Some of you saw resellers or other people selling unrealistic things but didn’t said anything. Some jumped into selling gimmicks like unlimited just to compete. Some lowered their prices so much they where not making enough money anymore.

Then everyone started to jump in, Google, Amazon, Microsoft. Smaller companies have absolutely no way to compete with them in terms of cloud infraestructure. Then you have companies eating investors money and burning cash like OVH, Digital Ocean and others. Again, they are all underselling, probably not making profits or enough. Will they crash? Yes, if they don’t sell out they will but it can take years.

How can you even compete vs someone that is willing to keep bleeding cash like this? Its called killing the competition and bigger companies are doing it for a long time now (like 1and1 selling domains and hosting for cents a year). Smaller companies will close down, some will get acquired, you get the picture. People also don’t want websites as much as in the past. They make a free WordPress site or Facebook page and its fine with them.

The market is smaller but yet there are more hosting companies. You also notice the same trend here on WHT. In the past there was not 1 minute where a post would not get updated. Today I sometimes see the same topic title for days without a reply. The activity here shows exactly what is happening with the hosting industry. Its consolidating or dying or both. Its surely not growing.

And everyone is to blame here. When companies posted 24/7 support when its not, or promising things they can’t deliver. Or just always saying yes to everything customers demanded even when its not part of their job.

Hosting companies turned themselves into prostitutes and customers do what they like with them because they have just to many offers and options to move on (which they do, jumping from one to other).

Just look some of the posts on WHT here in the past. Some people complaining his hosts is not replying a ticket, its 1 hour without reply and demanding them to fix his website (he caused the problem) or he will them sue them for the 1$ he is paying a month. You guys raised those little devils. Hosting companies went to far with what they provide for a price and now everyone is paying the cost. I don’t blame them for offering them same, they had too in order to stay in business, but I do will say that tons of users here preferred to remain in silent when they saw something wrong. Companies because they don’t want to trash another company and users because its in their best interest for companies to keep offering dream deals for them.

To be honest, cloud will also kill most of the remaining companies. You need hell of a lot money to start a decent infrastructure today and to be honest if you had the funds would you do it? Spending in hardware is a very dumb investment, in particular when you know that technology is deprecated so fast. Your new fancy servers will be garbage nobody wants in 3 years from now. Software? Software vendors started to raise their prices and getting a cut per server, or per user or per customer from hosting companies as well.

Software which is useless once you decide not to do hosting anymore. Both are absolutely terrible investments, hardware and software, and since most software vendors are on a lease model now, or don’t allow for software transfers in the case of owned software, its not even an investment in terms of assets anymore. When was even the last time your datacenter lowered your bandwidth arrangements…

The smart companies, in particular those acquired what was the first thing they did? Raise prices. Did they lose income or customers? No. They understand they need to do that in order to stay in business and improve the service. Hosting today sucks, I don’t think anyone will get rich with it anymore, probably have a hard attack sooner.

I think many are looking out, when they find something new they like, they probably will. I’m not a pessimist in anyway, just a person that tries to focus on reality.

WHT is the clear indication hosting is not interesting anymore, you can verify this on the activity itself of the forum which is going in decline.


Link: www.webhostingtalk.com/showthread.php?t=1513543