Most companies don't have a massive technical organization that is highly skilled in Internet technologies. No longer are raised floors, diesel generator backup and ventilation systems enough. As large organizations move their applications and Internet ventures into data centers, they are looking for services such as data backup, security and storage services, application management, load balancing and real-time network monitoring. Web hosting companies are responding to the demand, and corporate network managers can expect to see yesterday's Web hosting company morph into a combination network, application and professional services provider. Analysts expect to see partnerships and strategic alliances as Web hosting companies expand their services.
Collocation remains an important part of the Web hosting market.
Many companies still want basic real estate, which means a highly secure, well-maintained place to put their servers. Others, however, will want more. Take Coty, for example. The answer, McSpedon says, is that Coty decided that its focus was on making and selling products, not running Web sites. In addition, she says, finding top IT talent wasn't easy and the cost of launching and supporting Web ventures in-house just didn't make sense.