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The International Future of Web Hosting
As the United States economy plunges into recession, many businesses across the country have been forced to scale back their operations. The web hosting industry for the most part has avoided the large-scale layoffs due to consistent growth. That may change for any number of reasons. Net Neutrality might be lost leading to many websites going out of business, or perhaps American clients will begin cutting back on their web hosting services as the economy takes a further turn for the worse.
At any rate, the economic downturn seems here to stay, and any competitive web hosting service will have to make adjustments. It may no longer be prudent to keep only a domestic strategy for long term growth. Web Hosting is in an opportune position, in that expansion into foreign markets may be far easier than expected.
For example, Hostgator noticed that they were receiving a large portion of their customers from Brazil, so Hostgator developed a Brazilian website with language support for that large customer base.
In order to make the most of the booming international market for web hosting during the American economic slump, it is key for web hosting providers to identify these trends before a competitor capitalizes on it. Checking the usage logs of a web host's frontpage, it may in fact be a quite simple way to identify foreign countries that have a greater demand for hosting and possibly that company in particular appeals to that region. It is important to make sure whether it is a fluke or a consistent trend. Web hosting is one of the markets that is easier to expand internationally with. There are various consulting groups in many countries to consider discussing the issue with.
Another key area to focus on is currencies. It is important to observe whether the dollar is gaining strength or losing strength relative to foreign currencies in the markets the company would expand into. It may be important to peg the price to the dollar, during deflationary times such as the one the United States is in, and put the local currency rate in parenthesis next to it for convenience's sake. The instability in foreign markets would make it a problem in the event that their local currency destabilizes or collapses. Should the global economy stabilize, and the dollar begin a march to inflation again, pegging it to a local currency in a high export country that is looking to make gains against the dollar may not be a bad idea and provide an extra increase in income. Should the dollar begin hyperinflating after any economic collapse or in the event the president should decide to prop up the multi-trillion dollar housing bubble, those foreign currencies would begin to look vastly more appealing.
The traditional American market for web hosting may not always last, and a diversified customer base can provide stability and help companies identify key areas for growth.
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