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December 31, 2007

IT survey company Tier-1 Research announces that it has released a new study that reveals merger and acquisition activity continues to rise in the Web hosting industry.

Overall, this is the third report in the 2007 T-1-R Mass-Market Quarterly Series, which is designed to provide timely analysis and perspective on key technology trends and marketplace developments in the mass-market Web hosting sector.

Philbert Shih, senior IT analyst at T-1-R and author of the report says "the hosting sector is an area that is fragmented, under great pressure and in the center of a critical transformation period."

Shih added "overall, change is being driven by the proliferation of broadband access, Web-enabled mobile devices, and users' willingness to take more of their personal and business lives online."

"This has led to the growing importance of back-end applications such as messaging and collaboration tools, which are adding another layer of value for an industry that has been focused on outward-facing Web presence for most of its history," added Shih.

Tier-1's research report includes trends such as M&A activity changes in direction, answering Amazon's S-3, the case for on-demand service, revisiting Internet giants and even more critical moves from Google.

It covers more than twenty key public and private companies, including 1&1, Amazon, Facebook, Go Daddy, Google, Hostopia, Microsoft, NaviSite, Peer-1, Rackspace, SW-Soft, The Planet, Tucows, Verio, Web.com and Yahoo.

In the 67-page report, titled 'Mass Market Hosting Quarterly Winter 2007', Shih summarizes the major events of the recent quarter and assesses their impact.

The report further analyzes these significant changes in market share, the important trends and developments that were driving the mass-market hosting sector and the future of the market.

Case in point: Sun Hosting, a major Canadian Web hosting provider directly promotes on its website its intention to acquire other hosting providers. Since 2004, Sun Hosting has acquired four independent Web hosting companies, most of them in Canada, and now the company wishes to intensify its M&A activity.

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Source: The WHIR