itle='Dramatic Expansion of Services' Expected}
"Web hosters in the small business area [in 2009] will see a dramatic expansion of their services away from just Web hosting and domain names to software and services," Rob Lovell, director of the Worldwide Partnership Program of Web hosting software provider Parallels, and former CEO of Hostway, said in a recent keynote address at his company's Vision conference.
"Low-attrition services are required for companies to continue to grow rapidly in the industry, and with hosting companies already having a huge network of customers, they can simply add on services to suit," Lovell said. "Web site hosting for the consumer will continue to consolidate and commoditize. The big few really are now established, and entrances to the market from Yahoo, Google and Microsoft will impact the lower end of the hosting market considerably."
There are a number of types of hosting services that range from traditional online subscription-type services to the rental or leasing of data center space within a stand-alone building, in which enterprises utilize the provider's secure space and power draw.
On the site rental side, for example, is 365 Main, which provides infrastructure but no Web services. Located in downtown San Francisco, 365 Main serves as home to Charles Schwab Financial Services, Craigslist.com, RedEnvelope.com, a substantial part of the Sun Microsystems grid system and a number of other sites.
365 Main sold out its space months ago and is expanding to new centers in Oakland and Los Angeles.