The Price of Web Hosting Continues to Drop

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The price of web hosting continues to drop as competition continues to increase.

Web hosting is a relatively new industry which did not exist fifteen years ago. All web sites were being hosted by local internet service providers. Only large companies used to have their own websites. Things are very different now. Not only do the small and medium sized companies have websites but more and more individuals have websites as well.

There are businesses now that are thriving on the internet. Thousands of individuals also have their own websites as the internet becomes a major source of information. Work from home concepts are catching on and the internet is changing the way people do business. The trend of people owning more than one domain name is increasing. Some internet entrepreneurs have fifty or hundred web sites each.

The first impression one gets from looking at current trends is that the future of web hosting looks bright. It is going to be a period of competition for marketshare in a fiercely fought out market. Everyday more and more small and medium businesses are looking to build, improve or maintain a web presence. These changes will be beneficial to the well-managed and fast growing small and medium sized web hosts.

Personal websites are expected to increase as well. Reducing costs and relatively easy site building tools will bring more non techies into the market.

Price will be the big changing factor to look at. Competition will be fierce as web hosting companies continue to offer more features, but price always seems to be the first feature most people look at.

In the years ahead, web hosts will find that to stay viable and profitable, in a market place that is growing ever more competitive that they must not only offer fully featured plans, good connectivity and reliability, but also be willing and able to respond to the diverse queries from their customers.

Why are web hosting prices coming down?

One reason is that some of these web hosting providers are newer companies. They are probably trying to get business or their operational costs are lower than the other web hosting companies. In early days the infrastructure cost was very high, but that has been reduced significantly.

Newer players in the web hosting industry invest comparatively less. So how do cheap web hosting providers manage this? Part of it is that servers, hard drive space and bandwidth are much, much less expensive than they were several years ago. Cheap web hosting providers capitalize on this fact. Moreover now there is much more business then ten years ago. Big volumes at lower margins work in this industry as well.

Until recently, web hosts attempted to compete by providing the most tools and features. The problem with this model is that it can be overwhelming for the average person. Some web hosts have a cheap upfront rate and then charge you additionally for almost every other feature. Customization is becoming more popular where you pay only for what you use. It is important never to compromise on quality.

Anyway we will continue to see the prices of web hosting going down in the future as competition stays fierce.