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The Optimized Hosting Platform from HostingCon 2008

One of the keynotes from this week’s HostingCon 2008 was titled “The Optimized Hosting Platform – Meeting the Changing Needs of Hosting Providers.” The keynote was presented by Serguei Beloussov, CEO of Parallels. Here’s some of the points he covered:

5 Types of Cloud Computing

Serguei opened with a definition of Cloud Computing from Wikipedia. He then presented his visions for the 5 types of clouds that the majority of computing will move to:

  1. Google Could
  2. Microsoft Cloud
  3. Other coulds (IBM, Apple, HP, EMC, Amazon, Facebook)
  4. In-house clouds of large companies
  5. Service Providers – telcos, ISPs, web hosters, managed hosters, smaller SaaS players, online service companies

Trends in the Hosting Industry

He also provided some insights on the hosting industry as a whole. He pointed to some trends he’s seen:

  • Traditional hosting is established, growing, but slowing down
  • Managing hosting and SaaS are the fastest growing segments
  • Changes may be required to sustain revenues and continue growth.
  • The industry has matured, it is no longer some niche vertical market
  • Companies are acquiring and consolidating (Hostway acquired Affinity, Wachovia acquired HostMySite, etc.)
  • Rackspace filed for IPO
  • Virtualization is growing and enabling SaaS
  • Managed hosting is becoming cheaper and more accessible (virtualization and automation are driving this)

Internet Giants are a Threat

Sergei also talked about the threats posed to traditional hosting by the Internet giants – namely, Google, Microsoft and others:

  • Google is “changing the world”, and competing with hosting companies by providing free hosting and apps
  • Microsoft was always friendlier to partners, but now it is addressing Google’s threat. As a result they are offering services direct
  • Other giant IT companies must react (Amazon, Ebay, Yahoo, EMC Could Computing, IBM Global Services, HP acquires EDS)
  • Vars and System Integrators need large assets to enter managed hosting space
  • Dangerous times are ahead for channel and smaller players.

What Can Hosters Do

He wrapped things up with a concise “to-do” list for hosting companies:

  • Be paranoid about efficiency to keep prices competitive
  • Fully automate and provide self management for service levels
  • Provide Critical Services such as (business class email, Office apps, channel offerings, business line apps, online marketing integrations)
  • Host or own your customer and partners data
  • Offer broader set of services and many types of applications (Blackberry, Antivirus and Antispam for hosted email)
  • Offer better and flexible upgrade paths (different workloads, sizing options, automatic upgrades)
  • Stay close with customers and partners

(thanks to Flickr user Robyn’s Nest for the cloud photo and for releasing it under a Creative Commons License)

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