Is the web hosting industry missing the boat?

[Alphamail]

Here is one for the end-users visiting this forum…

I have for a long time wondered whether there is a mismatch between the services most web hosts offer and the perception of web hosts in the market. It seems to me that most web hosts are pretty much fixed into a role that they should provide options (such as downloadable forums) and a platform for web sites and nothing else. This means that although a package might offer a forum and a database, it is up to the end-user to configure both to ensure they work properly. Likewise, although a host might offer email forms, adapting them for a particular use or design is a programming requirement that rests with the end-user.

From my experience, there seem to be two groups of people who create web sites. The first is interested in the technology and what it will do – HTML, .asp, asp.net… the works. For these people configuring a forum and setting up email forms is part of the pleasure of owing a website. There are though a growing number of people, often small business owners and entrepreneurs, who see web sites as merely a means to commerce and revenue – the technical aspects of web sites hold no importance to this group and in fact cause a hindrance to their plans.

Although businesspeople have the more driving need to develop a web site, they are probably the most excluded. A small businessperson with a web site would have to employ a programmer to be able to create the web site he/she believes would make money. Aside from prohibitive costs, a businessperson would not be in a position to properly evaluate whether a programmer were worth his/her salt. This then seems to be a flaw in what is offered; hosts offer the platform and the options but not the programming support to get things going.

Having been involved with hosting for 5 years as an end user (one who is competent enough to deal with everything myself) I have met countless people with a business idea who genuinely believe that although it’s a designer’s job to design a web site, it is a web host’s role to ensure everything is working. I have met a number of disappointed people who eventually drop their schemes because they can’t easily get them off the ground.

I was talking to the CEO of a web hosting company about this issue the other day, and he suggested that the issue was pricing. His point of view was that with low-cost hosting being the bulk of the market, people would not be interested in a company charging $80 an hour for a programmer to set up their web forms, etc. for them when their monthly hosting cost substantially less. My point of view is completely the opposite – if a form costs $80 when it could potentially earn millions than it will be money well spent.

So, my questions are these: Who is right? Is the hosting business missing out on a revenue making opportunity, or should hosting companies just stick to hosting?

I very much look forward to your answers.

Alphamail

[WebEdit]

I think you hit the nail right on the head. I think most hosting companies see the problem with offering development as being they have to employ a programmer and pay their salary while they may not see a return on their investment. Once a hosting customer has their forms and forums set up what is to keep them from switching to a $3 hosting plan? Not many will be interested in a host that claims ownership of their forms either. A 1 year minimum contract could settle things but then the customer might wonder why they should pay for a year's worth of development services when they can pay a freelance developer for the 1-2 months of work they need. This brings us back to hosts offering free lance development themselves but if they aren't bringing in a lot of customers and therefore a lot of development work they'll be stuck paying a developer's salary where that developer is under utilized. I could see a partnership though between a web design firm and a web host that could really make a good go at doing what you're pointing at.

I think there could be a lot more creativity as well though. Why don't hosts go after VoIP or cell phones with HTML capabilities? They could offer services along those lines to current or new customers to help them expand their reach and really blow the competition away. With BPL (Broadband Over Powerlines) every electronic device is potentially Internet ready. Why not offer hosting services for security companies? They could manage the lights and heat in a household or security services that will monitor web cams and burglar alarms and fire alarms in a house.

Hosted email services, business collaberation, faxing, video conferencing, delivery management systems for restraurants or warehouses or anything...

Anyway, that's just off the top of my head but I think the Internet is under utilized and soon hosting companies will start to find interesting little niches and offer robust hosted applications to help companies do a variety of tasks where they are too small to pay for the development themselves.

[Alphamail]

Surely though a number of hosts are involved in web site design and programming and would have technical resources available? The fact that most do not utilise those resources for the purposes I mentioned above suggests to me that this is a market trend which is overriding basic business sense.

[ElCaballo]

There are loads of hosts that offer web design services.

Hostway, for example.

Why wouldn't hosts do programming work? Only makes sense.

[Alphamail]

'Loads' is a bit nebulous. Please elucidate.

[ElCaballo]

Loads, as in many many... you know, a lot?

Click here to see Loads of Web Hosting companies with Design services or go to Google and type in web hosting web design for yourself.

[NS-Icon]

I would agree, there are a fair number of hosts which provide design services as well, sometimes though you do need to look closer as some hosts prefer to keep their services separate and market each one individually.

[ASP-Hosting.ca]

There are plenty of hosts providing wed design and development services...

[Gearworx]

Web hosting is the icing on the cake. We started as a consulting company and we slowly transitioned into web hosting. To us it is a part of our wide range of services we offer.

[1PlanHost]

There is no doubt about it that many web hosting companies miss out on additional revenue from selling additional services to their customers. We often get request for site design, programming and other services. The issue is how to provide staff to handle the request and maintain the additional service financially. Unless your hosting staff are not very busy then I would not recommend getting them involved with site design or programing as someone will eventually drop the ball somewhere on either side. So having one or more dedicated professional developers on staff full time would be the ideal solution but of course an expensive one for smaller hosts.

Another solution would be to outsource site development request to freelance developers. This works well when you have a good working relationship and trust with the freelancer. We have tried it both ways and chose to rely mainly on our internal developer staff and then if request are more than we can handle outsource to freelancers. Currently we are seeking another full time developer to work with our team.

Best Wishes for a .Net Success!

[ASP-Hosting.ca]

Outsourcing to freelance developers, works in the most cases if you don't have in-house resources...

[NetManimal]

I offer web hosting and design services. If a customer needs help getting a script installed properly on their account, We would be more than happy to help that customer install this script onto their account. If they need help implementing it into the design of their website, we can offer them some web designing services in order to complete the task that they are wanting to do.

[ASP-Hosting.ca]

I offer web hosting and design services. If a customer needs help getting a script installed properly on their account, We would be more than happy to help that customer install this script onto their account. If they need help implementing it into the design of their website, we can offer them some web designing services in order to complete the task that they are wanting to do.

Wait until you get over 100 customers . Installing and fixing customers scripts will become major time drain...

[hostlander]

Additionally, it is a matter of demand and supply.

If a hosting provider's customers demand extra services i.e web design
that hosting company may also serve as a web designer at least refer to a reliable web design company.

[peter phillips]

I personally feel hosting companies offering web design services is a very good option. As it is there is a lot of competition in the hosting industry which in turn drives down the prices of the plans they offer. So basically the margin of profit reduces. Offering web design services might give them a revenue making opportunity. They could also make different websites for each and market each one individually.