Report predicts rise of outsourced Web hosting

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Report predicts rise of outsourced Web hosting

A report from Jupiter Media Metrix (JPM) has predicted the demise of in-house Web hosting.

The report said US companies alone could save anywhere from $6m (£4.14m) to $12m over three years by outsourcing Web hosting services.

It predicted the momentum for change would be unstoppable when firms became aware of the potential savings in both time and money.

Some 34% of US companies currently oversee Web-hosting internally, with 24% managing their applications internally while outsourcing server management.

According to JPM, many companies have traditionally opted for in-house hosting as a result of security and customer service concerns.

According to the researcher, companies have tended to overestimate the competitive advantages of in-house Web hosting. It found that firms that had adopted the approach were spending more on staffing and technology than those who had turned to outsourcing.

JPM advised companies to undertake infrastructure design in tandem with first-stage application planning and development.

If this precaution was not taken, it said, companies would be running run the risk of exceeding their scalability limits.

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