Nelson said the ASP model enables services to be delivered in seconds rather than the months it would take them to be deployed internally, and removes the burden and cost of managing the software. There is a huge shortage of IT people to manage applications today. On location But for now, according to solution providers at least, the first concern for many customers looking for hosting services is location. Where the technology is housed is a big issue. But it does seem to give people a higher degree of comfort if the hosting site is near to them.
Scale also is increasingly important, given the rapid growth many dotcoms face.
Expansion is on the front burner at many hosting companies. In 1999 Quwest Communications built four hosting centres covering at least 50,000sq ft. For its part, Verio, which caters mainly to small businesses, continues to grow through acquisitions. Meanwhile, Exodus Communications this year plans to put an emphasis on overseas markets. Most ebusiness efforts so far have been stovepipe efforts.