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Q: TOP 10 LARGEST REVENUE PUBLIC E-COMMERCE HOSTING COMPANIES ( Answered 5 out of 5 stars,   1 Comment )
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Subject: TOP 10 LARGEST REVENUE PUBLIC E-COMMERCE HOSTING COMPANIES
Category: Business and Money > eCommerce
Asked by: ecombizman-ga
List Price: $100.00
Posted: 23 Sep 2003 20:53 PDT
Expires: 23 Oct 2003 20:53 PDT
Question ID: 259620
What are the:

TOP 10 LARGEST REVENUE PUBLIC E-COMMERCE HOSTING COMPANIES
  
similar to:  
  
http://smallbusiness.yahoo.com/bzinfo/prod  
http://www.dell.com/us/en/bsd/topics/segtopic_dellhost_home.htm 

and if the researcher has any insight into which companies
are best for deploying 10 to 500 new, innovative .com Merchant Sites,
I would like to get as much feedback from very high revenue customers
of those HOSTING COMPANIES as I can get - if it's available, i.e.

1. Table of Three or more Tiers (Levels) of Service
2. Monthly Operating Cost for each of the Tiers (Levels) of Service
3. Reliability/Customer Feedback Rating (Service Uptime & Reliabilty)
4. Longterm Company Outlook to Select Strongest (Service) Hosting Corporation 

and most importantly, what are the key technical parameters to consider in
selecting E-COMMERCE HOSTING COMPANIES, parameters like:

1. Monthly Operating Costs versus Performance 
   (Bandwidth, Disk Space, High Volume Traffic)

2. Website Back-up and Restore Capabilities.

3. Longterm Outlook (will they exist in 5,10,20 years) for the Companies.

                Thanks, ecombizman

Request for Question Clarification by jbf777-ga on 24 Sep 2003 09:31 PDT
When you say "public," do you mean "publicly traded?"

Clarification of Question by ecombizman-ga on 24 Sep 2003 09:54 PDT
Yes, I am looking for a list of the

TOP 10 LARGEST REVENUE PUBLICLY TRADED E-COMMERCE HOSTING COMPANIES 

                  Thanks, ecombizman

Clarification of Question by ecombizman-ga on 25 Sep 2003 12:55 PDT
Are there any Google Answer reseachers who can tackle
this Wall Street style question ? I am curious as to
who the top ten PUBLICALLY TRADED E-COMMERCE HOSTING REVENUE
players are

It is a challenging question because:

1. There are many, many great E-Commerce Hosting Companies
   competing for market share, and most of them are probably
   not publicly traded.

2. The reporting of publically traded company revenues that
   provide WEBSITE HOSTING SERVICES are readily available,
   however, revenues generated specifically from
   WEBSITE HOSTING SERVICES business operations 
   may not be reported seperatley as such in the
   corporate reports (or maybe they are, and I
   just haven't found them yet - partly because
   I am new at this and partly because of information overload).

Thus, I will be happy with your best attempt at this answer,
even if it requires estimating which 10 publicly traded companies
have the highest WEBSITE HOSTING SERVICES revenues.

I expect IBM, YAHOO, and DELL might be in this list, but
I am sure there are Google researchers who have a much better
understanding of this area than I do.

Let me know what your are thinking:

What are the: 
 
TOP 10 LARGEST REVENUE PUBLIC E-COMMERCE HOSTING COMPANIES 
   
similar to:   
   
http://smallbusiness.yahoo.com/bzinfo/prod   
http://www.dell.com/us/en/bsd/topics/segtopic_dellhost_home.htm  
 
           Thank, ecombizman

Request for Question Clarification by jbf777-ga on 25 Sep 2003 18:29 PDT
ecombizman -

I have self-assembled an estimated list comprising the top five right
now, and am working on assembling the remaining five.  In addition,
since constructing that list, I have discovered a couple leads on some
research firms that might have their own published list.  I should
have an answer for you in the next 24-48 hours.

Thanks,

jbf777
researcher

Request for Question Clarification by jbf777-ga on 27 Sep 2003 22:45 PDT
Just an update: I have a list pretty well completed and am doing some
finishing touches on it.  Thanks for your patience.

Request for Question Clarification by jbf777-ga on 28 Sep 2003 19:06 PDT
Hello -

Can you tell me, must the list be "top 10," or can it be "Top 12" or "top 15"?

Thanks,

jbf

Clarification of Question by ecombizman-ga on 28 Sep 2003 22:21 PDT
Yes, It can be top 10, 12, 15, 20, etc.

I am looking for the TOP PUBLICALLY TRADED
COMPANY E-COMMERCE HOSTING REVENUE STREAMS
ranked per PUBLICALLY REPORTED E-COMMERCE
HOSTING REVENUE.

                   Thanks, ecombizman

Request for Question Clarification by jbf777-ga on 28 Sep 2003 23:18 PDT
This makes it both easier and harder. :)  Easier in that I can include
more than 10, but harder because you hadn't mentioned actually
"ranking" them up until this point.  Do you need them literally ranked
in order of their hosting revenue?  If so, I'm doubtful this can be
done, since, as you mentioned, some of these companies don't break out
these numbers (i.e., more than two publication/resear.  For instance,
"XO Communications" groups their web hosting number along with other
ecommerce-type services.  I have revenue data for perhaps 5-6 of the
total 12-15 that are largely hosting-specific public companies.  And
I'm pretty confident that all the companies on the list represent the
main players.  I do have calls into a few of these companies' investor
relations/marketing departments, and would be glad to report any
hosting revenue data as or if I get it after the answer is posted.  
There is a research firm that has a $1500 report available on the
sector, and I may be able to get a data slice from that report on
market share data as well, but no guarantees.

Please let me know what you would like to do.

jbf

Request for Question Clarification by jbf777-ga on 28 Sep 2003 23:20 PDT
sorry, that sentence in parentheses wasn't finished:

(i.e., more than two publication/researching firms in the industry
have said they either haven't heard of this data publicly reported)

Request for Question Clarification by jbf777-ga on 29 Sep 2003 12:15 PDT
Also, must these companies be international or US-only?

Request for Question Clarification by missy-ga on 29 Sep 2003 19:00 PDT
E,

If you don't mind my asking, why is it important that you know the
revenue of your potential webhost?  I hope you don't find the question
too forward.  It's just that as a webmistress, I am puzzled by your
desire for this information, rather than information that would
actually make a difference in the quality of service you might
receive.  You're asking for a statistic that generally isn't tracked -
the publicly traded firms that offer web hosting are large
telecommunications services conglomerates that have their fingers in
lots of pies, do lots of things in a rather mediocre fashion but excel
at none, and don't break down every revenue stream.  The information
you're seeking is most likely not available.

I know Jordan has been knocking his brains out trying to track this
down for you, perhaps letting him know why you need this information
will help him to help you get what you really need.  A better
understanding of your needs will help him find alternatives and get
you taken care of properly.

--Missy

Clarification of Question by ecombizman-ga on 29 Sep 2003 20:30 PDT
Hi Missy and Jordan, 

I am interested in this information mainly to
get a sample of the TOP REVENUE U.S. PUBLICALLY
TRADED HOSTING COMPANIES.

The reason I am only interested in PUBLIC U.S.
Companies that declare their hosting revenue is
because I am looking for a sample of the BIG FIRMS
who are most likely to be the TOP PLAYERS over the 
long haul ... i.e. 10, 20, 50 years.

Very large Publically Traded Companies with the
largest E-Commerce Hosting Revenues are more likely
to make this sector "a commodity" and with their
buyout power, are more likely to drive costs down
and performance up (although in the short term, many
private companies are battling for market share).

I anticipate that in 2,5,10 years time, this sector,
HOSTING E-COMMERCE WEBSITES will evolve into a few
Publically Traded Telco/Computer Titans after significant
M and A and Infrastructure Innovation. My theory is that
the more CAPITAL a company has, as long as they are experts
in the E-Commerce Hosting arena, the more performance they
will be able to offer by swallowing up competitors and
competing for market share. This theory ommits the many
private companies who may have superior services, but 
keep in mind my view that this sector of HOSTING E-COMMERCE
WEBSITES is, by TELCOM INFRASTRUCTURE BUSINESS MODELS viewpoint,
an ideal candidate for a "commodity" (predictable service requirements
and infrastructure).

Please note that I do not require a "revenue ranking" for these
companies - because it would take too long and require advanced
research, I am looking for "your best attempt" at a list of 10,15,25
of the PUBLICALLY TRADED E-COMMERCE COMPANIES WITH TOP REVENUES in
this business sector.

I think any answer Jordan has right now will be good enough.
I want to keep it a simple as possible so that I get some answer
of who the top 10, 15, 25 PUBLICALLY TRADED E-COMMERCE COMPANIES
WITH TOP REVENUES in this business sector are.

In the future (after all the M and A) and 5-10 years of refinment,
I expect the TELCOS/COMPUTER SERVER GIANTS may M and A (buy out)
some of the key big players in the private market, and this business
of
E-COMMERCE HOSTING will be "a comodity" (like GAS, OIL, ELECTRICITY).

This is the main reason I am focusing of E-COMMERCE HOSTING REVENUE
STREAMS of U.S. PUBLICALLY TRADED COMPANIES.

This Theory is constructed with the "general thinking" that a
commodity tends to be delivered by the largest capitalized expert
in the specific field with the most innovative, savy, large scale
business model (Similar to, for example DELL or EXXON, in their
respective
business areas).

Thus, this question is more of a theoretical business model question
with the "assumption" that E-COMMERCE HOSTING will eventually be a
COMMODITY (along with specialized vertical software deployment,
like Miva Merchant, etc).

Similar to a blend of the the current IBM/DELL/HP/YAHOO/VERIZON 
business models, however, with many more sophisticated competitors
to drive costs way down to the COMMODITY level.

I am predicting the TELCO/SERVER Giants will eventually offer 
extremely high performance e-commerce hosting solutions at
much lower prices due to their VERY, VERY LARGE MARKET CAPITALIZATION.
Thus the "COMMODITY THEORY".

Keep in mind, that this is a theoritical business infrastucture
question where "capitalization, infrastructure design,legal
manuveuring, innovation, execution, and marketing" will be played out
over the
next 5,10, 25 years.

Perhaps GE will be the numbers one E-COMMERCE HOSTING Company in 25
years ???
Who Knows ?

                     Thanks, ecombizman

Clarification of Question by ecombizman-ga on 29 Sep 2003 20:46 PDT
Hi Jordan and Missy,

Note that companies I am looking for are probably
not doing E-COMMERCE HOSTING exclusively.

I am looking for the 10, 15, 25 LARGEST CAPITALIZED
companies that have the LARGEST E-COMMERCE HOSTING REVENUES.

Thus, start the list with "an easy parameter to track",
which is CAPITALIZATION (Market Capital).

The ideal answer would be a quick look at two lists:

1. Largest Capitalized Puclically Traded U.S.
   Companies engaging in E-Commerce Hosting Service Deployment
   as a significant source of revenue.

2. Largest E-Commerce Hosting Revenue Streams from  
   Publically Traded U.S. Companies.

               Thanks, ecombizman
Answer  
Subject: Re: TOP 10 LARGEST REVENUE PUBLIC E-COMMERCE HOSTING COMPANIES
Answered By: jbf777-ga on 30 Sep 2003 10:20 PDT
Rated:5 out of 5 stars
 
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, “SBC’s 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 Stop’s 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"

Clarification of Answer by jbf777-ga on 30 Sep 2003 13:26 PDT
CORRECTION:

The following sentence:

For instance, in the case of SBC, they've invested over $100 million
in web hosting revenue.


.. should read:

For instance, in teh case of SBC, they've invested over $100 million
in web hosting operations.
ecombizman-ga rated this answer:5 out of 5 stars

Comments  
Subject: Re: TOP 10 LARGEST REVENUE PUBLIC E-COMMERCE HOSTING COMPANIES
From: jbf777-ga on 01 Oct 2003 14:43 PDT
 
Thanks for the rating!  Let me know if you have any questions.

jbf

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