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Is Web Hosting Price Wars Threatening Service Providers?

Recently, web hosting services have been a topic of discussion among the industry experts. These days’ small to large sized businesses are complaining about the surging costs of hosting their websites. This is because hosting providers not offering value added services are locked in an unhealthy pricing race, forcing enterprises mainly in the US and European countries to move to the offshore hosting destinations.

Let us take a quick glance at how this rising web hosting price wars can affect the global economic scenario

According to a recent survey conducted by the Ping! Zine Web tech magazine, IT professionals in the US & European nations are confused and annoyed by the current price conflicts as their business if increasingly shifting to the hosting firms located in China, India, and other Asian countries. The survey conducted by the magazine includes nearly 250 companies based in the UK and about 300 enterprises in the US.

The study revealed that approximately 80% of the respondents were not willing to compromise on security at the cost of lower prices. Moreover, 50% of the companies confirmed that speed stands priority for them when compared with lower hosting prices while 90% of the businesses stated that they would not compromise customer service over reduced prices.

In contrast, the other school of thought illustrates that the offshore bandwidth is considered as relatively less reliable and slower compared to the local bandwidth as provided by the European and the US based service providers. But with a dramatically reduced per gigabyte broadband charges, IT teams of the offshore based vendors have affirmed that they are able to differentiate their web hosting services in a better way.

Today, some of the important features that every business looks for are high bandwidth, competitive prices, reliability, flexibility, and dedicated support. Previously most of the hosts primarily focused on providing better bandwidth and space. With the rapid advancements in the information technology, web hosts are today forced to offer round-the-clock technical support.

This clearly means that the only potential impact of price wars is restricted to lower costs. As new technology continues to evolve, more features will be introduced and aggressively offered by the vendors to stand them apart from their competitors.

Thus, price wars is only a temporarily phenomenon. In the long run, this fad will be replaced by the better features leading to higher website availability and performance.

About Varsha Bhagchandani (11 Posts)


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