Touts Outsourcing Gains
In-house web hosting will be rare within three years
August 16, 2001 -- In-house web hosting will become "rare"
within three years as companies become more aware of the savings
available from outsourcing these functions, according to a new
report from the consulting firm Jupiter Media Matrix.
to Jupiter, 34 percent of companies currently host web servers
in-house, and another 24 percent split their web operations, handling
some functions in-house while outsourcing others.
says these companies may be missing out on savings that could
reach $6 million or more over a three-year period.
"Companies that continue to host their own sites will gain
little competitive advantage and spend more money on staffing
and technology than those that outsource these functions,'' said
David Taylor, research director, Jupiter Media Matrix.
is 30 to 40 percent cost savings to be realized by outsourcing
hosting - and too many companies are overlooking this," Taylor
added. "Those that act and act now will be saving millions
in the long run.''
findings will be music to the ears of providers of managed web
hosting services, who are pitching corporations on the benefits
of outsourcing. Many colocation providers are busy adding managed
services offerings (such as storage and Internet security) in
an effort to more effectively court these enterprise customers.
to Jupiter, companies that have thus far been reluctant to trust
their web hosting to outside firms are beginning to get more comfortable
with the idea.
perceptions that drive companies to host applications internally
will recede and the advantages of outsourcing to a specialist
will be more apparent, in-house hosting will become rare within
three years," according to Jupiter's analysis.
Additional findings from Jupiter's research will presented at
a conference the company is hosting in San Francisco next month
Media Metrix provides Internet and new technology analysis