1. Whats Next in Web Hosting? Isabel Wang and David Snead May 8, 2007

2. Web Hosting As We Know It What's Next in Web Hosting?

Data Centers

Colo Cages

Racks

Dedicated Servers

Reseller Accounts

Shared Hosting

3. One Simple Formula What's Next in Web Hosting? Web Space + Bandwidth = Monthly Fee 4. How To Get Ahead? What's Next in Web Hosting?

GoDaddy:1000 GB for $6.99

DreamHost: 1600 GB for $7.99

1&1: 2500 GB for $7.49

LunarPages: 2500 GB for $6.95

iPowerWeb: 3000 GB for $7.95

BlueHost: 3000 GB for $6.95

PowWeb: 3000 GB for $5.77

5. What Were Paying What's Next in Web Hosting? (Source: The WHIR) 6. What's Next in Web Hosting? What Were Getting Source: Google Trends 7. What's Next in Web Hosting? Meanwhile, In The Outside World Web Hosting vs Wiki 8. What's Next in Web Hosting? As Serguei Says, Virtualization *IS* The Future Dedicated Servers vs Virtualization 9. What's Next in Web Hosting? New Form Factors 10. Where Do You Want To Compute Today? What's Next in Web Hosting? Source: Presentation by Microsoft Windows Live Architect James Hamilton 11. Your Data is Everywhere And Nowhere What's Next in Web Hosting? Participants include Hostway, Softlayer and The Planet 12. Large User Base = High Capacity Network? What's Next in Web Hosting? + + 13. What's Next in Web Hosting? New Assets 14. Wal-Mart With Wings What's Next in Web Hosting? BusinessWeek:Ryanair's profits for the six months ended Sept. 30 soared to $422 million, onsales of $1.6 billion Ryanair uses its website, with 15M unique visitors/month, to boost ancillary revenues. The company gets commissions from sales rental cars, hotel rooms, ski packages, and travel insurance. For the year ended Mar. 31, suchancillary revenues rose to $332 million . 15. DreamHost vs TheWHIR What's Next in Web Hosting? Fun fact: The 10 highest traffic web hosting providers each have more reach than the 10 highest traffic web hosting directories. 16. Is Your ARPU Increasing by 42% Per Year? What's Next in Web Hosting? Morgan Stanley Says:Significant targeting / conversion improvements could bolster annual global revenue per unique user of $9 for Google (+42%) and $10 for Yahoo! (+29%)2-3xin next 5 years. 17. What's Next in Web Hosting? New Product Units 18. The Industry Standard Approach What's Next in Web Hosting?

GoDaddy:1,000 email accounts

DreamHost: 3,000 email accounts

1&1: 2,500 email accounts

LunarPages: Unlimited email accounts

iPowerWeb: 2,500 email accounts

BlueHost: 2,500 email accounts

PowWeb: Unlimited email accounts

19. A Few Other Options What's Next in Web Hosting?

SaaS Apps:Pay Per Seat

Amazon EC2: Pay Per Hour

Amazon S3: Pay Per GB

OpSource: Success Based Pricing

Shopster: Hosting + Drop Shipping

MySpace: Free; made $900M in Advertising

20. What's Next in Web Hosting? New Communication Strategies 21. One Size Doesnt Fit All What's Next in Web Hosting? Commerce: what were aiming for Content:reaches out to prospects Context: different info for different audience Community: gets multiple parties involved in conversation Personalization: the better to deliver the most effective salespitch for every customer Vertical Search: bettercustomer service + possible monetization opportunity Source: Read/Write Webs Web 3.0 equation 22. Knowledge is Power: Three Case Studies What's Next in Web Hosting? 23. What's Next in Web Hosting? New Risks 24. New Business Models = New Definitions

Whats The Scope of Your Relationship?

• Joint venture?

• Partnership?

• Vendor?

Document Your Relationship

• Customer

• Vendor

• Value-added Service Provider

What's Next in Web Hosting? 25. Do Your Current Contacts Work?

SLA

• Not just about hardware replacement any more

• How to define uptime?

AUP

• How will new services be abused?

• How to police conduct?

Terms of Service

• Does it reflect your relationship?

What's Next in Web Hosting? 26. Selling Services vs Ping/Power/Pipe

General Legal Issues

Communications Decency Act/Conduit Status

• Are you creating data?

• Are you manipulating data?

Contracts

• What risks are you prepared to take?

• Does a clickwrap contract work?

• What are the customers true expectations?

What's Next in Web Hosting? 27. Service Sales Issues

Can You Sell The Services?

Flow Down Provisions

Modify AUP/TOS

Contact With Personal Information

Are You Providing Professional Services?

Are You Providing Professional Advice?

Can You Support The Services?

What's Next in Web Hosting? 28. New Privacy Paradigm

Privacy Expectations Follow Data

• Synchronize with vendors

• Anticipate future uses of data

Privacy Policies/Expectations Are Analyzed From Consumers Point of View

• Draft documents in basic language

• Dont play hide the ball

• Chain of custody is transparent

Understand Regulatory Requirements

• Specific: HIPPA, SOX, etc

• FTC: unfair/deceptive trade practices

What's Next in Web Hosting?