Technavio, a global technology research and advisory company, has launched a report that signals an increased adoption of web servers by SMEs. Geographically, APAC accounts for most of the demand (35%–40%) for web hosting services from SMEs, followed by the Americas (30%–35%).
Web presence is considered a critical contributing factor for the success of businesses, according to Technavio’s report, as it helps them reach customers faster and more efficiently. This is leading to widespread adoption of web servers by SMEs, which is increasing demand for web hosting services.
The research study covers the present scenario and growth prospects of the global hosting services until 2020. The top key suppliers listed in the report include Endurance, GoDaddy, AWS, OVH, and Rackspace.
According to Technavio’s procurement market intelligence report on the global web hosting services, the market is expected to grow at a CAGR of more than 13% during the next four years.
The security of web hosting infrastructure plays an important role when considering a hosting infrastructure investment. “The exponential surge in data volumes and web traffic has substantially increased the vulnerability of web hosting servers,” said Angad Singh, a procurement intelligence specialist at Technavio. “Also, several large organizations face data security and scalability challenges, and are actively focusing on implementing measures to enhance server security and improve scalability by adopting next-gen technologies.”
MMO gaming sector
The online gaming market is expected to reach USD 1.9 billion by 2017. Game developers lack the ability to host games on their own or to meet increased demand across the globe, which is increasing their dependence on third-party game hosting service providers.
For example, large MMOG developers, such as Blizzard and Activision, are dependent on third-party service providers for game hosting services.
Growth of E-Commerce Market
By 2020, the e-commerce market is expected to grow exponentially and generate revenues of USD 3.5 trillion. To meet this demand, e-commerce companies are looking to outsource maintenance and operational aspects of commercial websites due to lack of in-house expertise. This is triggering demand for e-commerce hosting service providers.
Website Maintenance Costs
Businesses across markets are focusing on reducing website TCOs, according to Technavio’s report. They are also focusing on reducing hidden costs associated with web-based technology and infrastructure. This is prompting them to outsource their hosting service requirements.