Hosting Myths and Legends

Reading, Pennsylvania, August 25, 2001.  Web Hosting Magazine held its first Web Hosting Exposition in Washington, DC from August 20th through August 23rd.  Present were such landmark companies as IBM, EDS, IDC, WorldComm, Cable & Wireless, and NTT/Verio.

Peter M. Abraham, the founder and CEO of We Manage Servers had the opportunity to participate in a four-person panel discussing the myths and legends of the hosting industry. The other panelists included John Zdanowski, COO of Affinity Internet; Richard Zwicky, CEO of MetaMend; and Marc Hardgrove, Co-Founder of Jumpline Web Hosting.

Web Hosting Magazine will incorporate the issues discussed by this prestigious panel as part of its December 2001 cover story.

Issues discussed by the panel included, but where not limited to, the following topics:

• Hosting providers must compete on price in order to survive (myth).
• Shared hosting has turned into a pure commodity with very low margins (myth).
• Small hosting providers will only survive in niches (true).
• Bigger is always better (myth).
• Strategic partners that provide actual value are a must to survive (true).

“Anyone can compete on price.  But that leads to failed companies as they don’t have the revenue stream to survive and grow. Customers want solutions to real world problems, and will purchase on value when you can prove the value that removes their pains and provides them with a clear cut return on investment”, stated Peter M. Abraham, President / CEO of We Manage Servers.

Peter further stated, “The Web hosting industry is moving towards a consolidation model similar to the major auto manufacturers. You are either going to be a part of the major players, a part of the supply chain, or filling a key niche. Strategic partners that provide actual value beyond their name are important to the long-term survival of any hosting provider.”

About We Manage Servers
We Manage Servers helps companies take advantage of the power of co-located and dedicated servers without the hassles of knowing how to run and care for them. For more information visit http://www.wemanageservers.com/.