Hello ecombizman -
Important note: If you choose to rate this answer, please ask for any
necessary information/clarification before doing so. Thanks for your
understanding.
If you're interested in comprehensive reports in this area, there are
three research firms that carry out published research in this regard:
Probe Research (www.proberesearch.com)
Tier 1 (www.tier1research.com)
IDC (www.idcresearch.com)
All three have expensive reports on the subject (from $1500+), but
each give a comprehensive look at the industry. Data slices are
available from at least IDC.
To gain an estimation of the "who's who" in web-hosting, I searched
for documents that would lend clues as to the magnitude of these
companies. In some cases, actual web-hosting revenue streams have
been reported. In other cases, the company's corporate lips are
sealed. Here, an educated guess must be applied to determine whether
or not they would be on this "top X" list. For instance, in the case
of SBC, they've invested over $100 million in web hosting revenue.
That says something about the level of revenue they're expecting and
the seriousness of their commitment. In many cases, I've included
clips of links that lend clues to these companies' involvement in the
industry. As previously mentioned, I have calls into some of these
companies. If they get back to me, I'll be sure to post information
here.
"The Big Conglomerates":
IBM
$1.7B
Despite recent troubles in the market, IBM says its hosting division
is on a roll. The company reported $600 million worth of new customer
business during the third quarter and says hosting revenue so far this
year totals $1.7 billion, about double that of a year ago. Jim Corgel,
who took over as general manager of IBM's e-business hosting services
in April, discussed the business in a recent interview with Network
World senior writer Jennifer Mears.
http://www.computerworld.com/managementtopics/ebusiness/story/0,10801,66093,00.html
EDS
$3.9 Billion in hosting revenues according to:
http://djurdjevic.com/Bulletins2001/2001-20(EDS-3Q).html
Service description here:
http://www.eds.com/services_offerings/so_hosting_svs.shtml
Qwest
http://www.nwfusion.com/news/1999/0929qwesthp.html
The deal is expected to add as much as $1.5 billion in Web-hosting
revenue to Qwest's coffers over the next three years, the companies
say. In the first year alone, Qwest says it hopes to see revenue of
$200 million.
http://news.com.com/2100-1017_3-238431.html
IBM and Qwest Communications International today said they formed a
multiyear
Web hosting agreement, valued at $5 billion, to provide businesses
with
hosting services from 28 new data centers.
SBC
http://www.russophile.com/mstm/projects/webhosting.html
SBC communications is also invested over $100 million in web hosting
because, according to its chairman, SBCs more than 3 million
business customers increasingly are looking to us to provide them with
a complete package of the New Economy infrastructure
with a single
point of contact and accountability for the integrated services they
want.[26]
http://www.broadbandweek.com/news/0010/0010_news_host.htm
SBC Communications Inc. recently bought Toronto-based
Webhosting.com for
$100 million. Before acquiring the Web hosting company, the Baby
Bell had
a more undefined Web hosting strategy, relying on a number of
alliances with
independent firms across its sprawling territory.
AT&T
http://www.whmag.com/content/0901/besthost/page9.asp
AT&T Business, the one focused on web hosting and data services, is
the biggest of those four spinoffs. It took in $28.5 billion in
revenues last year, and expanded data center space by nearly 1 million
square feet.
http://www.techweb.com/wire/story/TWB20000905S0018
"IBM and AT&T are definitely the leaders in terms of their capacity
for
e-business hosting applications," he said. "It is difficult for
competitors
to compete with them."
The following are the smaller more "pure-play" companies. Web hosting
is a substantial part of their sales; how much is not really known,
but it's most likely a good portion of the sales figures below:
Verio
Subsidiary of NTT
Fiscal Year-End March
2001 Sales (mil.) $328.0
2001 Net Income (mil.) ($777.0)
2001 Employees 2,900
www.verio.com
Digex (Worldcom has involvement)
(NASDAQ (SC): DIGX)
Fiscal Year-End December
2002 Sales (mil.) $188.0
1-Year Sales Growth (12.3%)
2002 Net Income (mil.) ($246.2)
2002 Employees 785
1-Year Employee Growth (43.6%)
www.digex.com
Interland
NASDAQ: INLD
Fiscal Year-End August
2002 Sales (mil.) $101.6
1-Year Sales Growth 67.1%
2002 Net Income (mil.) ($11.3)
2002 Employees 745
1-Year Employee Growth (2.1%)
www.interland.com
Globix
OTC: GBXX
Fiscal Year-End September
2002 Sales (mil.) $82.0
1-Year Sales Growth (21.3%)
2002 Net Income (mil.) $138.8
2002 Employees 245
1-Year Employee Growth (59.5%)
www.globix.com
Navisite
(NASDAQ (SC): NAVI)
Fiscal Year-End July
2002 Sales (mil.) $59.4
1-Year Sales Growth (42.2%)
2002 Net Income (mil.) ($121.7)
2002 Employees 198
1-Year Employee Growth (48.7%)
www.navisite.com
Other
------
Register.com
(NASDAQ: RCOM)
Fiscal Year-End December
2002 Sales (mil.) $106.3
1-Year Sales Growth (8.6%)
2002 Net Income (mil.) ($10.4)
2002 Employees 507
1-Year Employee Growth 40.8%
www.register.com
XO Communications
Of the total revenue reported in the first quarter of 2003, $150.7
million was derived from voice services, which includes revenue from
local, long distance and other enhanced voice services, and $102.0
million was attributable to data services, which includes Internet
access, network access, and web hosting. Revenue from integrated voice
and data services totaled $33.4 million in the first quarter of 2003.
YAHOO
According to Webhosting.info
(http://www.webhosting.info/webhosts/ctoplist/us), Yahoo has 2.6% of
market share.
Substantial amount of financial information courtsey of Hoovers.
Additional information on these companies can be seen at
www.hoovers.com.
What to look for in a web host:
===================================
Choose a web host
http://www.entrepreneur.com/article/0,4621,307735,00.html
What to look for in a provider
http://www.low-cost-web-hosting-guide.com/choosing-a-web-host.shtml
What to look for in a web host
http://www.quantumoptical.com/resources/www2pop.asp
1000's of links on the topic with this search string:
://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&q=choosing+web+host&btnG=Google+Search
Tophosts
http://www.tophosts.com/
Additional notes:
==================
TWS Hosting
http://www.twshosting.com/company.php
While large providers such as Cable and Wireless and Sprint are
exiting the hosting business due to the overhead involved with
operations, The Web Stops aggressive attitude and business sense has
lead us to one of the top spots in our industry.
Level(3)
http://boston.internet.com/news/article.php/2176111
Level 3 Communications (Quote, Chart) is exiting its unprofitable
managed hosting business (a holdover from its Genuity acquisition) and
sending customers to Computer Sciences Corp. (Quote, Chart).
Probe Research report
http://www.dri.co.jp/auto/report/probe/prblusispm4302.htm
Merger and acquisition activity has also been rife in the market. with
market leader Exodus being bought up by Cable & Wireless. WorldCom
acquiring a 55% stake in Digex. as well as several other high-profile
transfers. By far. the biggest hosting revenue winners in the U.S. in
2001 were Exodus. IBM and EDS.
Biz.Yahoo
http://biz.yahoo.com/ic/60/60627.html
CMGI, which owned nearly 80% of NaviSite, sold its stake to managed
network services provider Clearblue Technologies in 2002. Navisite has
acquired managed applications services providers Avasta and Conxion
Corporation.
The Web Hosting Industry Report
http://thewhir.com/marketwatch/dos082903.cfm
Netcraft said Rackspace and Rackshack are two of the Internet's
largest Web hosting companies that collectively account for
approximately 2.5 percent of the Internet's active Web sites. "A
successful attack on either of their networks would be very
disruptive," the firm said.
Biz Yahoo
http://biz.yahoo.com/prnews/030826/phtu010_1.html
C I Host has grown from having a single client to 200,000 in less than
eight years, growing to more than $45 million in expected revenue for
2003, making it one of the world's largest web hosting companies.
Roving
http://www.roving.com/company/pressreleases/pr_20010720.html
ValueWeb, one of the largest Web hosting companies in the world, hosts
more than 100,000 Web sites for customers in more than 136 countries.
With the addition of Constant Contact, ValueWeb can now offer its
customers a complete and affordable, Web-based email marketing system
that enables small businesses to build profitable customer
relationships through direct email communications.
Web Hosting Industry Review
www.whir.com
Search strategies:
<company name> hosting "billion in"
<company name> hosting "million in"
"hosting accounted for"
"hosting revenues"
"largest web hosting companies" |