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The Truth Behind the Web Hosting Market

Posted by QuoteColo on June 06, 2014 - Updated on May 28, 2014

the truth behind the web hosting market

Take it from us: web hosting companies and Cloud hosting providers are a bunch of children who are constantly trying to one up each other. While you may not like to hear that your Cloud Computing provider who you love so much is more interested in showing up Rackspace or Linode than providing you with a solid hosted product, the truth is most providers are in the business of upsetting other providers, not taking care of your needs.

Well, let’s restate that. Web hosting providers and Cloud web server providers understand their business hinges on consumers like you utilizing their products. Due to this, Cloud and colocation hosting firms will take the time to build out excellent customer facing resources and provide consumers with needed support/sales channels.

This said, from the inside out, innovation isn’t coming from the urge to provide you the consumer with a more direct and more intuitive customer experience. No. Innovation is coming from a group of developers inside one company who either envy the product another group of developers launched for a given company or innovation is coming from a group of developers working to better the code of another company which they viewed at an industry trade show like HostingCon.

Maybe we are saying this because we have been in web hosting industry for over fifteen years or maybe we are saying this because we have been binge watching HBO’s brilliant Silicon Valley. Either way, the basic principle of innovation for revenge, spite or jealously remains true.

The other major truth behind the Cloud hosting industry is basic principle of providers to ensure they supply the market with just a little bit more than their competitors. What do we mean by this? For the past two years, DigitalOcean has made their name by catering to a singular market by way of providing cheap Linux Cloud SSD servers coupled with an internal knowledgebase and community which can answer any and all questions a DigitalOcean customer might have.

Now ranking as 11th largest infrastructure provider in the world, the strategy has worked out pretty well for DO. While other providers can’t match the infrastructure size of DO, to play on the field many Linux and Windows Cloud hosting providers took to establishing their own internal knowledgebase and community system designed to keep consumers looking inward. Two examples of this trend are SolarVPS and Linode. Both companies had no internal knowledgebase until DigitalOcean began dominating the scene. Once established, both companies (and many others) scrambled to establish a knowledgebase system of content designed to keep consumers looking inward.

This said, while we would love to tell you your web hosting provider has the best intentions and is only thinking about your customer experience when they create new solutions, the truth couldn’t be further. Like any industry with many players, a vast majority of companies simply follow the lead of leading providers and seek to supplant them by bettering their code, stealing and upgrading their applications and lowering their prices to be slightly under the price structure of their nearest few competitors.

At the end of the day, the customers benefit from all the child like backstabbing and plotting. Call it free market capitalism or call it revenge, the web hosting industry is a close knit bunch who simply want to see one another cry.

In turn, these tears mean better quality Cloud hosting products for the marketplace.

Categories: Colocation

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