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TRANSCRIPT
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What’s Next in Web Hosting?Isabel Wang and David Snead
May 8, 2007
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What's Next in Web Hosting?2
Web Hosting As We Know It
• Data Centers• Colo Cages• Racks • Dedicated Servers• Reseller Accounts• Shared Hosting
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What's Next in Web Hosting?3
One Simple Formula
Web Space + Bandwidth = Monthly Fee
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What's Next in Web Hosting?4
How To Get Ahead?
• GoDaddy: 1000 GB for $6.99
• DreamHost: 1600 GB for $7.99
• 1&1: 2500 GB for $7.49
• LunarPages: 2500 GB for $6.95
• iPowerWeb: 3000 GB for $7.95
• BlueHost: 3000 GB for $6.95
• PowWeb: 3000 GB for $5.77
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What's Next in Web Hosting?5
“What We’re Paying”
(Source: The WHIR)
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What's Next in Web Hosting?6
What We’re Getting
Source: Google Trends
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What's Next in Web Hosting?7
Meanwhile, In The Outside World…
Web Hosting vs Wiki
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What's Next in Web Hosting?8
As Serguei Says, Virtualization *IS* The Future
Dedicated Servers vs Virtualization
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What's Next in Web Hosting?9
New Form Factors
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What's Next in Web Hosting?10
“Where Do You Want To Compute Today?”
Source: Presentation by Microsoft Windows Live Architect James Hamilton
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What's Next in Web Hosting?11
“Your Data is Everywhere And Nowhere”
Participants include Hostway, Softlayer and The Planet
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What's Next in Web Hosting?12
Large User Base = High Capacity Network?
+
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What's Next in Web Hosting?13
New Assets
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What's Next in Web Hosting?14
“Wal-Mart With Wings”
BusinessWeek: “Ryanair's profits for the six months ended Sept. 30 soared to $422 million, on sales of $1.6 billion… Ryanair uses its website, with 15M unique visitors/month, to boost ancillary revenues. The company gets commissions from sales rental cars, hotel rooms, ski packages, and travel insurance. For the year ended Mar. 31, such ancillary revenues rose to $332 million.”
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What's Next in Web Hosting?15
DreamHost vs TheWHIR
Fun fact: The 10 highest traffic web hosting providers each have more reach than the 10 highest traffic web hosting directories.
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What's Next in Web Hosting?16
Is Your ARPU Increasing by 42% Per Year?
Morgan Stanley Says: “Significant targeting / conversion improvements could bolster annual global revenue per unique user of $9 for Google (+42%) and $10 for Yahoo! (+29%) 2-3x in next 5 years.”
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What's Next in Web Hosting?17
New Product Units
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What's Next in Web Hosting?18
The Industry Standard Approach
• GoDaddy: 1,000 email accounts
• DreamHost: 3,000 email accounts
• 1&1: 2,500 email accounts
• LunarPages: Unlimited email accounts
• iPowerWeb: 2,500 email accounts
• BlueHost: 2,500 email accounts
• PowWeb: Unlimited email accounts
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What's Next in Web Hosting?19
A Few Other Options
• SaaS Apps: Pay Per Seat
• Amazon EC2: Pay Per Hour
• Amazon S3: Pay Per GB
• OpSource: “Success Based Pricing”
• Shopster: Hosting + Drop Shipping
• MySpace: Free; made $900M in Advertising
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What's Next in Web Hosting?20
New Communication Strategies
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What's Next in Web Hosting?21
One Size Doesn’t Fit All
Commerce: what we’re aiming for
Content: reaches out to prospects
Context: different info for different audience
Community: gets multiple parties involved in conversation
Personalization: the better to deliver the most effective sales pitch for every customer
Vertical Search: better customer service + possible monetization opportunity
Source: Read/Write Web’s Web 3.0 equation
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What's Next in Web Hosting?22
Knowledge is Power: Three Case Studies
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What's Next in Web Hosting?23
New Risks
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What's Next in Web Hosting?24
New Business Models = New Definitions• What’s The Scope of Your Relationship?
- Joint venture?- Partnership?- Vendor?
• Document Your Relationship- Customer- Vendor- Value-added Service Provider
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What's Next in Web Hosting?25
Do Your Current Contacts Work?• SLA
- Not just about hardware replacement any more- How to define uptime?
• AUP- How will new services be abused?- How to police conduct?
• Terms of Service- Does it reflect your relationship?
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What's Next in Web Hosting?26
Selling Services vs Ping/Power/Pipe• General Legal Issues
• Communications Decency Act/Conduit Status- Are you creating data?- Are you manipulating data?
• Contracts- What risks are you prepared to take?- Does a clickwrap contract work?- What are the customer’s true expectations?
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What's Next in Web Hosting?27
Service Sales Issues• Can You Sell The Services?
• Flow Down Provisions
• Modify AUP/TOS
• Contact With Personal Information
• Are You Providing Professional Services?
• Are You Providing Professional Advice?
• Can You Support The Services?
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What's Next in Web Hosting?28
New Privacy Paradigm• Privacy Expectations Follow Data
- Synchronize with vendors- Anticipate future uses of data
• Privacy Policies/Expectations Are Analyzed From Consumers’ Point of View- Draft documents in basic language- Don’t play hide the ball- Chain of custody is transparent
• Understand Regulatory Requirements- Specific: HIPPA, SOX, etc- FTC: unfair/deceptive trade practices