[thelist] bigger hosting - a trend? (fwd)

martin.p.burns at uk.pwcglobal.com martin.p.burns at uk.pwcglobal.com
Tue Jan 8 12:39:17 CST 2002


Memo from Martin P Burns of PricewaterhouseCoopers

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Hi Dan

While I do think that smaller sites, growing organically are now
getting bigger (and that's true of both commercial and non-commercial
sites), there's a couple of other factors which are in play:

*) As you noted, many of the dot-bombs, developed by people who
   didn't know what they were doing in business terms are crashing.
   Because underneath whatever the site was, they just didn't have
   a business model worth anything. Boo were the first ones to go -
   and deservedly so. People who are crap at running businesses
   shouldn't run businesses, whether they're online or not. And advertising
   as a main revenue model is just daft in nearly every case.

*) A lot of existing large companies who were cautious in the dot-com
    era, putting out wee test sites, or no site at all, are now starting to
    really think through whether it makes sense to do business using
    online channels. For some, it will. For some it won't. For some, it
    might, so it's worth testing. But that's business as usual, and as
    usual, it's the existing big companies who have the money and the
    patience (ie they don't have to please VCs) to win in the end.

   To give a couple of examples: 'Pureplay' online banks like First-e
    failed. Online banking offered by mainstream banks (and by
   subsidiaries of mainstream banks, like Egg) are now succeeding.
   Pureplay, distribute from the centre online shopping companies like
   WebVan failed. Established supermarkets who can leverage their
   economies of scale and existing distribution network like Tesco
   are now profitable.

*) Sites run as a labour of love don't *need* to cover their costs. So
    they'll keep going long after the point at which a commercial site
   would have been quietly taken out and shot.

And of course, Internet sites aimed at consumers are only a small
part of the pie, as mentioned in my reply to Peter earlier. I've worked on
projects where what the public sees is only the toe of the elephant.

Cheers
Martin





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Subject:  [thelist] bigger hosting - a trend? (fwd)




---------- Forwarded message ----------
Date: Tue, 08 Jan 2002 13:02:07 -0500
From: Cleo TB1124 <mrscleo at hotmail.com>
To: thelist at evolt.org
Subject: bigger hosting - a trend?


Hi

I've noticed lately something that resembles a trend. While the big
dot-coms
have gone crashing, it would seem that smaller sites are getting bigger and
bigger.
On the lists that I frequent (including this one), I see urgent requests
for
hosting, because sites are getting kicked off from their regular hosts.
Reasons for those evictions range from " too high bandwidth" , to " load
too
high for the servers ".
In fact, I had one site offline for a little over a month till we could
find
a host that would take us for a price that we were able to pay. It seems "
small sites"  as in sites done by individuals, not companies, are getting
more and more exposure.

Has anyone else noticed this trend ? Or is it just the specific circles
that
I frequent?

What can those sites do? The ad market has crashed, there's no money coming
in. the dotcoms are gone, yet the demand is still there.



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