Web Hosting Business- An Overview|
The new revolution that has come of age in this world is the internet revolution. Some people term this age as the cyber age where without moving an inch from your desk you can have the world at your feet with just a few clicks. When such is the wide scope of internet what are the prospects of a web hosting business. In this article we will see what web hosting is, how profitable it can be, what would be needed for setting the business up and who would be the target market.
Internet hosting service has several types of which web hosting business is a part. Basically every company would have their own websites which would be connected within their servers and accessible only within the walls of the company this is called intranet. On the other hand is internet, where the company website will be accessible to the internet users as part of the World Wide Web. So typically the web hosting business involves in providing a space for the clients to use the servers which in turn can be used for connecting to the World Wide Web. The servers which are employed by the web host companies are either directly owned by them or brought on a lease basis with the vendors. The kind of service that this business provides essentially depends on the type of requirement, for example a large organization wanting to do a web hosting will not be just satisfied with a file transfer mechanism where the files can be transferred from one location to the other. But they would rather be interested in more complex operations such as database access and support for application development systems such as JAVA, PHP etc. In addition certain companies prefer to outsource data center services also which cover a whole lot of things like email, instant messaging, forums and network infrastructure.
Since there are many players in the market that offer the web hosting business with a free package for individual users the pricing structure($1 a year) has to be very carefully chosen. There are several types of hosting that are involved and based on the user requirements the type of hosting has to be clearly defined and implemented because the compatibility of a hosting service depends to a very large extent on the hardware and software platforms that exist. In addition the nature of applications that would be hosted also needs to be checked before fixing a hosting. To ensure that your web hosting business has a greater reach the simplest way to start would be is by providing free hosting services for individual users for basic file transfer and through social networking also. Once you know that your business is moving in the right direction the extent of coverage that is provided for the free package can be minimized. There will be a very common question that people ask, why do I need to provide something for free? The answer is this is not just a service being provided free of cost but more of an investment in branding and advertising. For example every home website that has your advertisement on it will increase your business prospects by ten times. On the other hand if these services are strictly charged, and if you are a new player in the market, there would not be many people who would be willing to opt for these services which would be a serious setback to get things started effectively. In countires like India its very diifficult to capture market due to heavy competition. In countries like Brazil this concept is new and so there is more margin and they call web hosting as hospedagem de site
One very popular area that comes directly to our mind is the gaming business users for who this hosting would be of immense help too. So this would be one other area that can be a target market but the only difference is these require advanced setups required for which there needs to be a strong knowledge based. Educational institutions and universities also require web hosting for the training purposes, but the level of usage and business impact would be significantly lower when compared to corporate outsourcing deals that come in for this. If you have yourself established there would be a steady flow of revenue, since the data center services would be an ongoing activity where some companies would seek support round the clock and we are talking about deals in millions of dollars as opposed to the small home deals. Most companies would go through your security policy in detail to ensure that there is no data theft of any sort which would be a serious loss to their credibility. Additionally how secure your environments are will determine the level of protection that you can provide from hacker and virus attacks. The security management process covered under the Information Technology Infrastructure Library (ITIL) clearly mentions that if a company is subject an attack of any sort it is very likely that the business will fall within the next year. Classic examples include Enron and Satyam. If you could start with a little branding and precaution this business would be the one that is going to make you hit the headlines.
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