This is a two part question:

1. I would like to get statistics on the web hosting services industry
as it relates to the small business market.  Please include historical
as well as forecasted (future) information from reputable sources. 
Essentially I would like to know how big is this industry, how fast is
it growing, and any such related stats.

2. What are the major challenges facing web hosting service providers
and the customers (both VAR's and end-customers).