Economic Downturn Doesn’t Stop Hosting Growth

June 4th, 2008 by Richard Chart

While some of us may be suffering in the current global credit squeeze, it may have been just what was required to keep the hosting industry simmering nicely. At least that was one widely held view at the 451 Group’s Hosting Transformation Summit in London on Tuesday.

Just when data center build outs threatened to escalate dangerously close to “irrational exuberance”, along comes tightness on the credit side to prevent the pot from boiling over. Right now, the industry is quite happy with the status quo, thank you very much. According to Tier1 Research’s Dan Golding, co-lo is growing globally at 20% while managed hosting is growing at closer to 30% annually, with no end in sight.

Think the weakness in the economy will cool hosting as well? Think again. The analysts here see a negative correlation for co-location with the economy, while managed hosting shows no correlation at all! At ScienceLogic, we are bearing witness to this growth amongst our many customers in the service provider industry and we are continually driving towards scalability enhancements in EM7 to stay out in front of the need.

Popularity: 3% [?]

Add comment June 4th, 2008

Some HTML allowed:
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Trackback this post | Subscribe to the comments via RSS Feed