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Google, Others Pose SME Hosting Prospects By Rawlson O'Neil King, theWHIR.com August 18, 2004 -- (WEB HOST INDUSTRY REVIEW) -- A round of new, heightened competition will emerge if Google ever begins to provide Web or application hosting to entry-level consumers. The combination of its popular existing services and mass-market dominance would ensure its emergence as a powerful new player in the SME hosting sector. Google's already-massive backing infrastructure, if combined with its powerful contextual advertising technology, could provide a legitimate model for a free hosting solution with the potential to generate countless page views and tremendous revenue. In establishing such a service, Google would follow in the footsteps of Yahoo! and eBay who already provide e-business services to the mass market. Yahoo! has for years provided Web hosting and construction tools to small business. And, in order to augment its online auctioning service, eBay currently provides businesses with the tools to establish e-stores, in which to showcase their merchandise. The deployment of such online services targeted at the SME segment would allow for the organic growth of consumer usage and revenue. New modes of revenue will become important, as investors demand more strategies from new economy entrants like Google, to augment their earnings. Research firm IDC believes that some of these new players have the potential to challenge the traditional set of IT services companies, such as IBM and EDS, which are currently pursuing the delivery model known as utility computing. Utility, or on-demand, computing can be defined as an enterprise-level computing model in which the technology and computing resources are allocated to an organization and its individual users on an as-needed basis. Computing resources such as CPU cycles, bandwidth availability, storage and applications can be channeled to users based on the tasks they perform at specified times. "The combination of newer players and the disruptive nature of utility computing could radically alter not only the landscape of current players known for provisioning IT â and even communications â services, but also the ecosystem of players and the fundamental process of provisioning such services," said David Tapper, IDC research director in charge of monitoring IT outsourcing, utility, and offshore services. "Success will depend on how well players transform their businesses in such areas as accessing new sets of customers likely to buy these services, ensuring that ecosystem partnerships support 'cannibalization' of older services and technologies, and aligning brands with the appropriate value chain position." While the outcome of the transition is not assured, many analysts agree that the new entrants will make a strong effort to dominate both the SME hosting and utility computing fields, once they all enter both fields in full force. more interviews, news .. www.thewhir.com/marketwatch -------------------------------------------------------- Â Copyright 2004 Web Host Industry Review, Inc. For more information, please contact us at www.thewhir.net. 87 River Street Toronto, Ontario M5A 3P4 _______________________________________________________________________ Powered by List Builder To unsubscribe follow the link: http://lb.bcentral.com/ex/sp?c=27842&s=DE49B512E335472D&m=622 [Non-text portions of this message have been removed] ------------------------ Yahoo! Groups Sponsor --------------------~--> $9.95 domain names from Yahoo!. Register anything. http://us.click.yahoo.com/J8kdrA/y20IAA/yQLSAA/BCfwlB/TM --------------------------------------------------------------------~-> Yahoo! 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