Leveraging Technology: Digital Solutions for Streamlined Web Hosting Services Procurement

Web Hosting Services Category Overview

The web hosting services category is anticipated to grow at a CAGR of 19.4% from 2023 to 2030. The rising number of companies, escalating e-commerce trade, and demand for cloud-based solutions are growing at a rapid pace. This is leading to the increasing demand for global web hosting services category. Globally, there are around 330,000 hosting providers as of 2023. In October 2023, the global count of internet users reached 5.3 billion. The increasing number of individuals using internet is expected to drive the demand for hosting services.

Trends such as multi-cloud, green web, and virtual private server hosting are allowing businesses to manage massive data and help in building the foundation for the future. Multi-cloud hosting is a relatively new hosting approach that involves the distribution of various cloud assets like software and documents across two or more cloud environments. From a business model standpoint, this approach involves an organization utilizing multiple cloud computing platforms to perform diverse tasks and processes. It liberates a company from depending entirely on a single cloud provider by offering the flexibility to involve multiple service providers. In this configuration, an organization can opt to utilize the top-performing services from each cloud provider. As of 2023, 90% of the large enterprises have adopted multi-cloud infrastructure.


Access of the Web Hosting Services Procurement Intelligence Report, 2023 – 2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis


In 2023 the internet’s annual output of CO2 was equal to 31 million cars driving at the same time across the globe. Due to this, small and medium businesses are experiencing environmental pressure that is emerging along with the category growth. However, service providers are currently investing resources to support carbon offset programs. In environmentally conscious web hosting, these providers actively engage in eco-friendly projects aimed at minimizing their environmental footprint. This involves acquiring renewable energy certificates (REC) or carbon offset certificates (VER).


A security breach is one of the major concerns among users nowadays. According to IT Governance research, in November 2023, there were around 470 publicly disclosed security incidents. Ensuring user privacy is increasingly essential for web hosting providers in today’s digital landscape. Security measures, including compliance checks for CMS vulnerabilities, standard SSL certification, and encrypted data storage, have become more widespread, highlighting the heightened importance of hosting security protocols.


Request for Sample Copy of the Web Hosting Services Procurement Intelligence Report, 2023 – 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)


Web Hosting Services Procurement Intelligence Report Scope

The Web Hosting Services category is expected to have pricing growth outlook of 5% – 6% (annual) from 2023 to 2030, with below pricing models.

  • Service-Based Pricing
  • Tier-Based Pricing
  • Competition-Based Pricing


Supplier Selection Scope

  • Cost And Pricing
  • Past Engagements
  • Productivity
  • Geographical Presence


Supplier selection criteria

  • Service Provided
  • Technical Support
  • Data Privacy
  • Additional Services
  • Customization Option
  • Years In Services
  • Regulatory Compliance
  • Operational And Functional Capabilities
  • Others


Web Hosting Services Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

  • Market Intelligence along with emerging technology and regulatory landscape
  • Market estimates and forecasts from 2023 to 2030
  • Growth opportunities, trends, and driver analysis
  • Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments
  • Porter’s 5 forces
  • Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis
  • Engagement and operating models, KPI, and SLA elements
  • LCC/BCC analysis and negotiation strategies
  • Peer benchmarking and product analysis
  • Market report in PDF, Excel, and PPT and online dashboard versions


Web Hosting Services Procurement Cost and Supplier Intelligence

The category is moderately fragmented in nature. Top companies such as Amazon Web Services, Google Cloud, and GoDaddy held 18%, 8%, and 8% of the market share, respectively in 2023. These companies are continuously involved in taking initiatives to support small businesses. For instance, GoDaddy lets users create free mobile-friendly websites and gives free access to its digital marketing tools and website builder.


Buyers such as small and large-scale businesses or individuals seeking hosting services often have a range of service providers to choose from, making them influential in negotiating prices and service terms. However, top suppliers such as Google Cloud, GoDaddy, and Amazon Web Services who possess better operational & functional capabilities have higher negotiation power. Additionally, suppliers try to provide additional services to their customers to differentiate themselves from rest and to stay competitive in the market.


Suppliers in the category are also engaging in mergers and acquisitions to increase services and consumer reach. For instance, in February 2023, HostPapa acquired the web hosting and logo design business of Deluxe Corporation. The Deluxe web hosting business serves as a trusted provider to small business and email hosting customers. The acquisition will help HostPapa in expanding its hosting and design business across the world.


Staff salary, hardware & software, network infrastructure costs, maintenance, technical support, and licensing are some of the key cost components incurred in providing the services. Other costs include office rent, utilities, and training costs. In 2023, the price of shared hosting was in the range of USD 2.51/month for entry options to USD 4.62 / month for mid-tier options. Similarly, the price of virtual private server hosting can be between USD 20 to USD 100/ month. Prices of dedicated hosting usually start around USD 100/month.


Under sourcing intelligence, buyers usually outsource their web hosting services that can help them to set up new sites, protect sites from security threats, and provide services which are in line with their business needs and goals. Outsourcing can benefit the company by gaining service expertise and round-the-clock support. Overall, service providers can give a dedicated team of professionals to oversee the user’s website and solve problems for a smooth flow of business. While scouting for service providers, buyers look for the services provided, technical support, data storage capacity, data privacy and additional services. Buyers also compare prices of different service providers as part of their sourcing practices.


Key companies profiled:

Amazon Web Services, GoDaddy, Google Cloud, Bluehost, HostPapa, Inmotion Hosting, DreamHost, IONOS, Namecheap, Justhost


Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.


Our services include (not limited to):

  • Market Intelligence involving – market size and forecast, growth factors, and driving trends
  • Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
  • Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
  • Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions
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