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Don’t just host, provide a service

Simply providing hosting services as a `vanilla’ resource for others to use is unlikely to be the best model for success in the hosting business – except perhaps for one or two of the largest service providers which can complete on price where price sensitivity is a key component of choice. Service providers therefore need to provide a wider, deeper, richer choice of services to customers that help de-cerebralise the customer’s choice of service provider – making it a `no-brainer’ of a decision. In practice this will probably mean service providers specialising, and two two main approaches seem to be shaping up already:

  • technical/functional specialisation – ie email management services
  • business/market sector specialisation – ie aggregation of services relevant to a market sector

This will in turn open up the development of increasingly specialised service providers.

If you are interested in contributing to this area of study, or feel the results could help your business, please contact us.