10 Hosting Trends for 2024: Latest Predictions & What Lies Beyond

Finding a reliable hosting provider should always be at the top of your list when building a website. With the coronavirus pandemic ramping up online traffic across the board, ensuring that your website is always up and running has never been more paramount.

This said, is your hosting infrastructure up to speed with the latest hosting trends? The best hosting services should be. In this article, we look at the latest in the hosting space, be it technology, practice, pricing, market, and a whole lot more.

There is a lot to consider to become a reputable and reliable web hosting company. Security is just one among many as, over the last five years, security breaches had risen by 67% (Accenture, 2019). Being able to offer website owners a 99.9% uptime is great and all, but it’s no longer enough if you want to stay in the game, especially with the big and leading players who are always several steps ahead of everyone else.

Meanwhile, the escalating e-commerce trade is one of the main factors driving the growth of the web hosting industry (Bloomberg, 2019). The e-commerce market frequently requires smooth website operations, maintenance, and data security, and these are some aspects where web hosting providers focus their product developments.

As of October 2020, there are around 4.6 billion active internet users globally, which represent around 60% of the world’s population (Statista, 2020). This is why web hosting is among the fastest-growing sectors today. In fact, it is predicted to have a 9.6% CAGR from 2021 to 2025, to reach a market volume of US$96 billion (Statista, 2021).

The growth of web hosting industry is not without disruptions, however. These days, the biggest threat faced by web hosting providers is the changing user attitudes toward hosting. In the last decade, the search term “web hosting” dropped by 60%, according to Google Trends. Aside from that, the gap between DIY and professional website creation continues to widen as many small business owners look for ways to start a website without a huge degree of technical knowledge.

Those being said, let’s take a look at the latest web hosting trends and see how the industry is facing the challenges threatening its position in the market.

1. Multi-cloud hosting

Emerging technologies that allow organizational resilience, team collaboration, and massive data management empower businesses to negate the early effects of the pandemic and help build a tough foundation for the future. One such technology is multi-cloud hosting.

This relatively new cloud-based hosting approach involves the distribution of a wide array of cloud assets like documents and software across two or more cloud environments. From a business model perspective, it is a strategy where an organization leverages several cloud computing platforms to carry out different tasks and processes. It frees a company from total reliance on a single cloud host by giving the option to engage multiple providers. With this setup, an organization can choose to only use the best-of-breed services from each cloud host.

Due to the impact of the pandemic, 38% of technology executives worldwide plan to increase their multi-cloud and/or hybrid cloud emerging technology spending in the next 12 months for 2020 (KPMG, 2020). For the same year, another study found that 93% of businesses are shifting to a multi-cloud architecture (Flexera, 2020).

Multiple is better than one

This next-generation cloud approach increases the advantages of cloud hosting while streamlining various business aspects like security, interoperability, data access, and IT operations. Merely putting all business data in the public cloud does not offer the ultimate solution. Rather, good risk management entails distributing one’s digital assets to several public cloud service providers (IBM, 2020).

In 2020, 35% of companies that have already transitioned to multi-cloud hosting say that their most crucial challenge entails the need for reliable compliance, access control, and security (IBM, 2020). This originates from the complexities that are inherent in any multi-cloud setting, such as the possibility for excessive egress costs, data gravity, and broken silos.

Still, the multi-cloud approach is expected to further expand in deployment mainly because it can seamlessly integrate the best services that every platform provides. This method also enables businesses to personalize a cloud system that specifically addresses their organizational objectives.

What’s more, a multi-cloud strategy allows for lesser risk. In case a single cloud host fails, a company can remain operating using the other cloud hosts in a multi-cloud architecture, which is not possible if all data is stored in a single location. And because of the new challenges that materialized due to COVID-19, 59% of organizations will likely go over and above their original cloud usage plans (Flexera, 2020).

2. Green web hosting

The Internet’s annual CO₂ output is equal to 31 million cars driving around the world all at once. How did this happen? Well, think of the physical location where all your website data get stored. These are called data centers, and there’s definitely a lot going on in these places.

Apart from the web developers managing all the servers, all the hardware gets their fair share of work too, if not actually more. Much like the daily gadgets we use, like our phones, tablets, and laptops, they tend to get hot when used for a long time. Thus, the hardware in data centers needs to be stored in a cool and controlled environment. This, however, requires incredibly energy-intensive maintenance and results in a significant amount of CO₂ output.

Fortunately, web hosting companies are now investing in carbon offsetting schemes. In green web hosting, web hosts actively participate in eco-friendly initiatives to reduce negative impacts on the environment. They do this by gaining renewable energy certificates (REC) or carbon offset certificates (VER).

RECs certify that a hosting company helped in generating renewable energy. Companies that specialize in creating renewable energy generate these RECs and sell them to a hosting company. The money from this purchase then finances the operational costs for green energy initiatives. VERs, however, certify that a hosting company helped in reducing the number of greenhouse gases that the certificate states.

3. Pricing competition

As the demand for web hosting spikes, the price wars follow suit and continue to heat up. The web host industry is getting extremely competitive day by day. Thus, apart from unique tools and features, web hosting companies often compete with their prices on the line. To attract new customers, they start to offer tempting and fairly discounted buy-in deals.

The costs in building a site vary greatly depending on the complexity or simplicity of your needs. The price of a website boils down to several items: web hosting, domain, content creation, graphic design, web development, and marketing among others.

In web hosting, there are different price schemes offering different features and options. Shared web hosting usually offers the cheapest prices. Nonetheless, finding the right features, the best hosting services software, and the right price for a website can provide a smooth platform for businesses on the web.

The shared web hosting service, which controls 31.7% of the market, is predicted to have a CAGR of 10.3 from 2019 to 2025 (Berkaweb, 2020). Compared to cloud hosting and dedicated hosting, shared web hosting usually comes cheap, and they provide excellent server performance and features. However, there is always a reason for cheap prices, so website owners will have to be wary and check if the web host provider can cover all the demands of the website they need. Shared hosting services are available for as low as $2 a month (TechRadar, 2021).

Top 5 Web Hosting Services Providers

1. BlueHost. A cloud-based hosting service that provides virtual private servers, shared hosting, and reseller hosting options. For more information, read our BlueHost product tour.
2. HostGator. A powerful web hosting service built primarily for WordPress hosting. HostGator provides hosting services that span VPS hosting, domain services packages, and shared hosting.
3. InMotion Hosting. A leading web hosting provider built with small and medium-sized businesses in mind. InMotion Hosting provides notable services such as VPS hosting, shared hosting, and dedicated servers.
4. iPage. A leading web hosting service built to help users host personal or business websites. iPage provides an easy to use drag-and-drop website builder that empowers users to create appealing websites in minutes.
5. GoDaddy Hosting. A reliable web hosting service that provides shared hosting, dedicated server, VPS hosting, and basic site builder services. GoDaddy Hosting provides flexible services that allow users to scale their websites as their businesses grow.

4. HTTPS as the norm

Last July 2018, Google Chrome started to mark non-HTTPS websites as “not secure.” To encourage sites to shift into HTTPS, Google Chrome even promised a fair rankings boost. In early 2021, 97 of every 100 websites already default to HTTPS (Google, 2021). This made offering free HTTPS the norm in the web hosting arena. Not shifting to HTTPS can greatly affect site rankings, and that can be costly for businesses on the web.

There are many benefits to using HTTPS. It helps a website rank higher on search engines, it builds customer trust, and more importantly, it protects sensitive data. Switching to HTTPS is crucial for a website’s security. This ensures that all information gathered on a website is secured and impossible to steal by most Internet thieves. Thus, search engines and site visitors tend to stay away from websites that don’t have HTTPS in them.

For web hosting providers, offering customers HTTPS is not just something that’s nice to have but also a must-have these days. Not doing so can make you lag in the race, especially now that there are many web hosting companies offering free HTTPS.

5. Fewer data centers

Data centers, often hidden from sight, are the backbone of the Internet. However, In 2020, data centers were predicted to account for around 45% of total IT infrastructure spending. By 2024, that figure is forecasted to decrease to 36.5% (IDC/Statista, 2021).

Nowadays, fewer organizations are building their own data centers. There are many factors contributing to this decline. One such factor is the split between enterprises investing in computers and servers, and the service providers choosing to go into the enterprise or the consumer space.

The cloud is also eliminating some of the data center roles. It is one of the driving factors behind the declining number of data centers. With the number of enterprises having the cloud on their side, they don’t require infrastructures setting up data centers. This also affects the number of people needed to manage servers, storage, and networks.

6. Security protocols

The volume of records compromised by publicly disclosed data breaches in 2020 totaled 37 billion, one of the largest in a single year so far (RSB, 2021). And as contact-tracing became a popular measure by the government to control and prevent the further spread of COVID-19, 34% of American adults are uncomfortable knowing that tech firms are sharing their location information with local authorities (Statista, 2021).

Cybercriminals are taking advantage of the pandemic. And since COVID-19 scams are increasing, web hosting providers are now putting more emphasis on security protocols. Several instances of data violations and cybersecurity meltdowns in the past years are forcing hosting providers to enforce more tightened security.

Thus, offering user privacy protection is now more crucial than ever among web hosting providers. A powerful web hosting solution must be able to provide the extra tools to protect the personal information of customers. Hosting security protocols, such as compliance checks for CMS vulnerabilities, the standard SSL certification, and encrypted data storage, are now more pervasive.

Domain privacy is also one of the best features a web host can offer. It is an add-on service offered by many web hosting providers. When a customer registers a domain name, their personal details are in WHOIS, a publicly available database. Domain privacy protection ensures that all the personal data of customers are protected and hidden from the rest of the world.

7. Offering additional services

In all kinds of businesses, being able to offer unique and additional services can give you an edge over your competitors. The same goes for the web hosting industry. These days, more and more hosting providers are developing and investing in new tools and features that they can offer to their customers.

In today’s highly technological age, customer expectations when it comes to web hosting are also increasing day by day. Web hosting is no longer as simple as running a server and storing files. The basic services like web design, HTTPS, SSL, and taking advantage of e-mail marketing solutions may already seem a lot, but they’re no longer enough.

Web hosting providers are addressing the increasing demands of their customers by providing several value-added services. For instance, there are now many website owners needing online marketing platforms who face several unique challenges in e-commerce. Thus, e-commerce support comes in handy and can bring more customers to web hosting providers.

Another additional service that hosting providers offer is online training. This service helps the customer throughout each stage of executing their ideas for their website. Other services include marketing and SEO.

8. Managed web hosting services

Managed web hosting is a type of hosting service that is rapidly becoming popular in the hosting arena. For growing websites or online businesses, managed hosting trends have become a great solution, especially if you don’t have much technical know-how in the aspects of performance optimization and security.

Managed hosting costs vary depending on the plan and provider. On average, a low-cost managed hosting can range from $120 to $200 a month, while high-end ones usually start at $400 per month. (Comentum)

In managed hosting, the web host provides and manages necessary operations such as help desk services, backups, and system updates. Some managed hosting providers rent out computer servers that are completely operated by the service provider. This allows website owners to focus on growing their business while the admins run the website on the web.

The demand for managed services is driven by several factors. This includes the pressure on organizations to keep pace with technological advancements, the need to meet the demands of regulatory compliance, as well as the lack of internal and technical knowledge. In managed hosting, the providers focus on the technical side of running your website, while the content website owners want to create is all up to them.

9. Targeting markets

Web hosting companies, much like other businesses, run on continuous hard work and efforts of retaining old clients and attracting new ones. By 2021, the United States is expected to have a web hosting market volume of $24.51 billion making it the top country with the highest generated web hosting revenue. (Statista, 2021)

Nonetheless, not all market segments can be covered by a single web hosting provider. Finding a niche is still the best way to stand out among hundreds of competitors.

When it comes to pricing and a variety of hosting services, it can be difficult to compete with giant and established web hosting providers. Thus, if you’re on to starting a hosting company, it’s a great idea to target niche markets. By doing so, your site rankings can improve on search engines due to less competition.

Furthermore, by focusing on a specific group of customers, you’ll be able to connect with your customers on a more personal level. Finding your USP can also help differentiate your web hosting company from the competition Nonetheless, it’s still just as important to pick an audience large enough to bring profits.

10. DIY website builders

DIY website builders make it seem that websites are easy to build and even easier to manage. This is the biggest competition that web hosting services are facing. Web hosting allows total coding-control of a website. Meanwhile, the drag-and-drop website builders present an easier and wider range of features allowing users to command the customization of their websites.

Website builders and web hosting both provide powerful platforms wherein an individual or organization can create an online presence for their personal initiatives or businesses. Web hosting comprises the bandwidth, storage, server, network, and other resources necessary to create and maintain a website. However, DIY web builders allow the creation of websites based on visuals alone instead of codes.

The website builder market is booming across the globe, especially with companies blogging for leads. In 2019, its value was approximately $7.2 billion; by 2026, it is expected to reach around $13.6 billion (Yahoo Finance, 2021). The increasing need of businesses to establish an online presence one of the driving factors behind the growth of website builders.

How to choose the right hosting plan for your business?

Choosing the right hosting plan is essential for your business’s online presence, performance, and scalability. Here’s a step-by-step guide to help you select the best plan:

• Assess Your Website’s Needs: Start by evaluating your website’s requirements, including expected traffic, storage needs, and performance goals. A small blog may require resources different from those of a high-traffic e-commerce site.
• Understand Hosting Types: Familiarize yourself with the main hosting types:
  • Shared Hosting: Ideal for small websites with low traffic, offering affordable options.
  • VPS Hosting: Suitable for growing sites needing more resources and control.
  • Dedicated Hosting: Best for high-traffic websites requiring top performance and security.
  • Cloud Hosting: Flexible, scalable, and great for websites with fluctuating traffic.
• Evaluate Security and Uptime: Look for hosting providers with robust security features like SSL certificates, firewalls, and malware protection. Aim for a provider with at least 99.9% uptime to keep your site available.
• Consider Scalability Options: As your business grows, your hosting needs may change. Choose a plan that offers easy upgrades to prevent service interruptions as you expand.
• Check Customer Support: Reliable customer support is crucial, especially for non-technical users. Opt for providers with 24/7 support via chat, phone, and email.
• Compare Costs and Features: Finally, compare pricing plans and ensure you get essential features for your budget. Sometimes, a slightly higher cost is worth it for added performance and support.

The Future of Web Hosting

There are a lot of new opportunities that lie in the web hosting industry, but you must pay close attention to where factors such as environment, cloud, and privacy protocols stand in relation to web hosting. Although the gap becomes clearer between managed hosting trends and DIY website builders, there’s a thing or two to learn as you take a closer look at them, such as the benefits they both bring to website owners. Keeping track of website owner needs can help you find the right solutions you can develop and offer to your customers.

Evidently, the web hosting industry has no other way to go except forward—but only if it continues to evolve and adapt to the relentlessly changing digital market. The easy access to online videos and the rise of mobile browsing and apps, such as several mobile marketing platforms, all forced out the maximum capabilities that web hosting can contribute to the creation of websites. And if you want to stand your ground in the industry, these are the trends you’ll have to keep in mind as you craft your strategy. Good luck!

Key Insights

• Multi-cloud Hosting:
  • Utilizes multiple cloud platforms to enhance security, data access, and IT operations.
  • 93% of businesses are shifting to multi-cloud architecture due to its benefits.
  • Challenges include consistent security and managing multiple vendors.
• Green Web Hosting:
  • Hosting companies invest in renewable energy certificates (REC) and carbon offset certificates (VER) to reduce environmental impact.
  • Recognizes and supports green energy initiatives.
• Pricing Competition:
  • Intense competition leads to lower prices and more attractive deals for customers.
  • Shared web hosting is the most cost-effective, expected to grow at a CAGR of 10.3% from 2019 to 2025.
• HTTPS as the Norm:
  • Google Chrome’s push for HTTPS has made it a standard in web hosting.
  • Enhances security, customer trust, and search engine rankings.
• Fewer Data Centers:
  • Decline in data center investments as more businesses shift to cloud solutions.
  • Predicted to account for only 36.5% of IT infrastructure spending by 2024.
• Security Protocols:
  • Increased focus on user privacy and data protection due to rising cyber threats.
  • Offering SSL certification and domain privacy is crucial.
• Offering Additional Services:
  • Web hosts provide value-added services like e-commerce support, online training, and marketing solutions.
  • Helps differentiate from competitors and meet increasing customer demands.
• Managed Web Hosting Services:
  • Growing in popularity for businesses lacking technical expertise.
  • Providers handle IT operations, allowing businesses to focus on growth.
• Targeting Markets:
  • Focus on niche markets to reduce competition and improve search engine rankings.
  • US expected to lead the market with $24.51 billion in revenue by 2021.
• DIY Website Builders:
  • Compete with web hosting by offering user-friendly, drag-and-drop website creation tools.
  • Market expected to grow significantly, reaching $13.6 billion by 2026.

FAQ

1. What is multi-cloud hosting? Multi-cloud hosting involves using multiple cloud platforms to distribute digital assets, enhancing security, data access, and IT operations. This approach helps businesses avoid reliance on a single cloud provider and leverage the best services from each.
2. How does green web hosting benefit the environment? Green web hosting involves web hosting companies investing in renewable energy certificates (REC) and carbon offset certificates (VER). These investments support the generation of renewable energy and reduce greenhouse gas emissions, helping to minimize environmental impact.
3. Why is HTTPS important for websites? HTTPS is crucial for websites as it ensures secure data transmission, builds customer trust, and improves search engine rankings. Google Chrome’s initiative to mark non-HTTPS websites as “not secure” has made HTTPS a standard feature in web hosting.
4. What are the advantages of managed web hosting services? Managed web hosting services provide businesses with comprehensive IT support, including help desk services, backups, and system updates. This allows businesses to focus on growth while the hosting provider manages the technical aspects of running their website.
5. Why are fewer data centers being built? The decline in data center investments is due to the increasing adoption of cloud solutions, which eliminate the need for traditional data center infrastructure. Businesses are shifting to cloud-based services, reducing the demand for physical data centers.
6. How do web hosting providers ensure data security? Web hosting providers implement various security protocols, including SSL certification, encrypted data storage, and domain privacy protection. These measures help protect customer data and ensure compliance with security standards.
7. What additional services do web hosting providers offer? To meet customer demands and differentiate from competitors, web hosting providers offer additional services such as e-commerce support, online training, marketing solutions, and SEO services. These value-added services help customers achieve their website goals.
8. How do DIY website builders compete with traditional web hosting? DIY website builders offer user-friendly, drag-and-drop tools that allow individuals to create websites without coding knowledge. These builders compete with traditional web hosting by providing a simpler and more accessible website creation process.
9. What is the future outlook for the web hosting industry? The web hosting industry is expected to continue growing, driven by trends such as multi-cloud hosting, green hosting, and managed services. Providers need to adapt to changing market demands and technological advancements to remain competitive.

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By Allan Jay

Allan Jay is FinancesOnline’s resident B2B expert with over a decade of experience in the SaaS space. He has worked with vendors primarily as a consultant in the UX analysis and design stages, lending to his reviews a strong user-centric angle. A management professional by training, he adds the business perspective to software development. He likes validating a product against workflows and business goals, two metrics, he believes, by which software is ultimately measured.