HOSTED AND MANAGED SERVICE PROVIDERS-BUYER'S GUIDE

Managed Hosting – A Buyer’s Guide (2005) Copyright © E-consultancy.com ltd 2005 – not for distribution to non-subscribers without written permission 1 Managed Hosting – A Buyer’s Guide E-consultancy August 2005 SAMPLE ONLY A full 127-page version contains vendor profiles and more market research, growth forecasts and a SWOT analysis. Subscribe for £99 to download E-consultancy’s exclusive reports for 12 months. Download the full version from: http://www.e-consultancy.com/publications/managed-hosting-buyers-guide-2005 Managed Hosting – A Buyer’s Guide (2005) Copyright © E-consultancy.com ltd 2005 – not for distribution to non-subscribers without written permission 2 Table of Contents 1. Introduction Error! Bookmark not defined. 1.1 About E-consultancy.....................................................Error! Bookmark not defined. 2. Executive Summary Error! Bookmark not defined. 2.1 Further Reading............................................................Error! Bookmark not defined. 3. The Market Error! Bookmark not defined. 3.1 Market Definition: What is Managed Hosting? ..............Error! Bookmark not defined. 3.3 Market Value ................................................................Error! Bookmark not defined. 3.3 Market Growth ..............................................................Error! Bookmark not defined. 3.4 Drivers of Growth and Market Trends...........................Error! Bookmark not defined. 3.4.1 More businesses recognise the benefits of outsourcing...................... Error! Bookmark not defined. 3.4.2 Customers move towards selective outsourcing ................................. Error! Bookmark not defined. 3.4.3 Growth of e-commerce fuels managed hosting sector ........................ Error! Bookmark not defined. 3.4.4 Resurgence of ASP business model drives business for managed hosting providersError! Bookmark not defined. 3.5 Return on investment....................................................Error! Bookmark not defined. 3.6 Strengths, Weaknesses, Opportunities and Threats (SWOT)Error! Bookmark not defined. 3.6.1 Strengths ............................................................................................. Error! Bookmark not defined. 3.6.2 Weaknesses........................................................................................ Error! Bookmark not defined. 3.6.3 Opportunities ....................................................................................... Error! Bookmark not defined. 3.6.4 Threats ................................................................................................ Error! Bookmark not defined. 4. Costs and Pricing Models Error! Bookmark not defined. 4.1. Utility model ........................................................................................... Error! Bookmark not defined. 5. Finding the Right Service Provider Error! Bookmark not defined. 5.1 Introduction...................................................................Error! Bookmark not defined. 5.2 Do you need to outsource?...........................................Error! Bookmark not defined. 5.3 How do you select a vendor?........................................Error! Bookmark not defined. 5.3 How do you find the best fit with your own organisation?Error! Bookmark not defined. 5.4 What type of Service Level Agreement do you want?...Error! Bookmark not defined. 5.5 What procedures does the provider put in place to prevent serious problems, and what happens if there is a disaster? ...................................Error! Bookmark not defined. 6. Market Positioning Charts Error! Bookmark not defined. 6.1 Explanation for Chart 1 – Business Model ....................Error! Bookmark not defined. 6.2 Explanation for Chart 2 – Server Technology SupportedError! Bookmark not defined. 6.3 Explanation for Chart 3 – Typical Customer Profile.......Error! Bookmark not defined. 7. Supplier Matrix Error! Bookmark not defined. 8. Supplier Marketplace and Profiles Error! Bookmark not defined. 8.1 Areti -Company & Service details ................................Error! Bookmark not defined. 8.2 Attenda -Company & Service details ...........................Error! Bookmark not defined. 8.3 Easynet -Company & Service details...........................Error! Bookmark not defined. Managed Hosting – A Buyer’s Guide (2005) Copyright © E-consultancy.com ltd 2005 – not for distribution to non-subscribers without written permission 3 8.4 ForLinux -Company & Service details ..........................Error! Bookmark not defined. 8.5 Fresca -Company & Service details.............................Error! Bookmark not defined. 8.6 Globix -Company & Service details..............................Error! Bookmark not defined. 8.7 Hostway – Company & Service details .........................Error! Bookmark not defined. 8.8 Intercea -Company & Service details...........................Error! Bookmark not defined. 8.9 Namesco -Company & Service details.........................Error! Bookmark not defined. 8.10 SAVVIS -Company & Service details .........................Error! Bookmark not defined. 8.11 THUS -Company & Service details ............................Error! Bookmark not defined. 8.12 UKFast -Company & Service details..........................Error! Bookmark not defined. 8.13 Virtual Internet – Company & Service details.............Error! Bookmark not defined. SAMPLE ONLY A full 127-page version contains vendor profiles and more market research, growth forecasts and a SWOT analysis. Subscribe for £99 to download E-consultancy’s exclusive reports for 12 months. Download the full version from: http://www.e-consultancy.com/publications/managed-hosting-buyers-guide-2005 Managed Hosting – A Buyer’s Guide (2005) Copyright © E-consultancy.com ltd 2005 – not for distribution to non-subscribers without written permission 4 1. Introduction E-consultancy’s buyer’s guides are the ideal starting place for anybody researching new suppliers and partners in the e-commerce and interactive market sectors. They contain in-depth vendor profiles, to help you quickly evaluate suppliers and service providers, as well as market and SWOT analyses to help you put things into perspective. The selection of companies profiled in the report is based on a combination of factors, not limited to but including: • Analysis of capabilities (services /products) • Clients • Experience (qualifications /trade bodies /case studies /client lists) • Expertise (by sector /topic), • UK status (a UK office is preferred, occasional exceptions are made) • Ability to take on and fulfil new projects • Recommendations from trusted sources (or anecdotal evidence to the contrary) • Google visibility • Business model (a high % of turnover should be related to these services) • Company website E-consultancy does not explicitly recommend any of the suppliers featured in these guides, principally because it is impossible for us to work with all of them to form a first-hand opinion. But we do believe -based on an intensive and careful selection process -that the chosen vendors represent quality. Buyer’s Guides are updated on an annual basis, so the information contained within is recent and thus valid. Send any questions or comments to E-consultancy’s editor, Chris Lake. 1.1 About E-consultancy E-consultancy is the UK’s leading online publisher of best practice internet marketing reports, research and how-to guides. It also publishes buyer’s guides and has a directory of 100,000+ third party internet marketing white papers. Since moving to a paid-content model in 2003 E-consultancy has amassed thousands of paying subscribers, around 30,000 registered users and 115,000 unique users sessions per month. Its weekly newsletter is sent to 21,500 users. Subscribers pay from £99 per year to access the exclusive and highly practical content, which helps internet marketers get the most out of their websites. By the end of 2005, E-consultancy will have hosted about 70 events, including roundtables and monthly ‘Supplier Showcases’, where six suppliers pitch to an audience of pre-qualified buyers (typically between 100-200) in a Central London venue. E-consultancy also provides a range of inhoous training programmes, such as seminars and workshops. http://www.e-consultancy.com/about/Managed Hosting – A Buyer’s Guide (2005) Copyright © E-consultancy.com ltd 2005 – not for distribution to non-subscribers without written permission 5 2. Executive Summary The market for managed hosting services in the UK was worth between £250m and £300m in 2004 and will be worth up to £370m by the end of 2005. Increased competition within the marketplace has ensured that the leading providers have a compelling value proposition which includes both state-of-the-art technology and excellent account management. More and more businesses are now recognising the benefits of outsourcing because of the value to their organisations in terms of cost savings, reduced complexity and reduced risk. E-consultancy believes that the sector will continue to show robust growth in the medium term. Companies will increasingly see the advantage of entrusting business critical infrastructure and applications to service providers, rather than managing their requirements in-house without the same economies of scale. Trends within this market include: • Increased outsourcing as customers seek to focus on their own core business • An appetite for selective rather than wholesale IT outsourcing • New opportunities created by increase in e-commerce activity • Resurgence of ASP model • An increase in regulatory demands which is driving need for best-in-class services 2.1 Further Reading E-consultancy publishes reports and hosts events to help marketers better understand the potential of the internet. Related E-consultancy reports to help you improve the way your online strategy include: • Online Marketing Masterclasses – Presentations (November 2004) • Internet Statistics Compendium (April 2005) • Managing An E-commerce Team (June 2005) • An E-consultancy special report entitled Managed Hosting Service Level Agreements: Business Value and Content will be published at the end of August (2005) by Econsuultanc *The above reports are free to access for E-consultancy subscribers. SAMPLE ONLY A full 127-page version contains vendor profiles and more market research, growth forecasts and a SWOT analysis. Subscribe for £99 to download E-consultancy’s exclusive reports for 12 months. Download the full version from: http://www.e-consultancy.com/publications/managed-hosting-buyers-guide-2005 Managed Hosting – A Buyer’s Guide (2005) Copyright © E-consultancy.com ltd 2005 – not for distribution to non-subscribers without written permission 6 3. The Market 3.1 Market Definition: What is Managed Hosting? The managed hosting market comprises those suppliers who offer value-added services around web hosting, dedicated servers and related business applications. All the vendors profiled in this report offer managed hosting services but they have varying backgrounds in terms of their original business focus. Some have developed these services as part of their telecoms and networking offering, while others are IT service providers with an expertise in managed hosting. Despite these historical differences, the convergence of technologies means that companies who originally had different propositions are now competing in the same space. It is worth noting that some of the suppliers in this report are partners rather than competitors because they occupy different parts of a value chain which spans from internet connectivity and colocation to applications administration and a plethora of other services. Most of the vendors who are profiled offer services right across this spectrum although some do not have direct access to the internet backbone and therefore rely on another ISP for that connection. The supplier matrix in Section 7 is a useful reference tool for buyers who want a quick overview of which vendors can provide which services. For the most part, this report includes vendors with a well-defined focus in the managed hosting arena rather than including the giant, generic IT providers such as IBM and EDS who offer these services but only as part of a much wider proposition. Managed hosting is very much the focus of this report, though some of the companies profiled have a broader service offering. The market positioning charts later in this report are another tool which enable buyers to understand the differences in each network’s value proposition. Section 6 explains these charts and how they should be interpreted. The aim of this report is to help organisations understand the benefits -and the different types -of managed hosting providers. It is written primarily for buyers but we hope the guide is useful for suppliers and other organisations with related business propositions such as website monitoring services. SAMPLE ONLY A full 127-page version contains vendor profiles and more market research, growth forecasts and a SWOT analysis. Subscribe for £99 to download E-consultancy’s exclusive reports for 12 months. Download the full version from: http://www.e-consultancy.com/publications/managed-hosting-buyers-guide-2005 Managed Hosting – A Buyer’s Guide (2005) Copyright © E-consultancy.com ltd 2005 – not for distribution to non-subscribers without written permission 7 3.4 Drivers of Growth and Market Trends 3.4.1 More businesses recognise the benefits of outsourcing While the concept of outsourcing is nothing new, there has recently been a surge of interest from companies who are recognising the benefits of managed hosting services. The best companies in the sector are prospering because they have refined the quality and reliability of their services to make their proposition increasingly compelling for businesses. Organisations which have not got a huge IT budget internally have recognised that they can get better services at a cheaper cost through outsourcing, in a way that is not possible through managing the technology in-house. Outsourcing enables business to focus on their core business rather than areas which are not strategic. Neil Cresswell, of Intercea, said: “The mid to large enterprise market is the core market for us. These companies have got critical needs and business systems that need the highest quality management but haven’t always got the economies of scale to be able to provide a quality service in-house with all the investment in facilities, skills, technology and process that is needed to do that.” He added: “We have invested millions of pounds in the people, processes and the technology to be able to manage services to a high standard, but we can spread our costs across thousands of servers so the total operational cost per server is very low. “The bigger companies have the scale to justify doing it themselves but once you get outside the top 100 companies there are not many that have the scale to deliver a service in-house cost effectively. The fixed investment costs are the same but spread across 10 or 50 servers only, the same operational costs to the business per server or application become un-economical.” Need for reduced risk and increased accountability Many enterprises realise that they can reduce their exposure to risk by employing a managed services company which has a wealth of experience and expertise as well as a tried and tested platform. Marion Stewart, Head of Customer Solutions EMEA, SAVVIS, said that the increased need for transparency and accountability within businesses was a major factor in the trend towards outsourcing: “It is much more difficult for companies to make their own IT departments accountable from a financial perspective. A lot of businesses are looking at the value of their internal IT resources. If there isn’t a certain level of utilisation then they are looking at other ways of delivering the service.” Steve Nice, Technical Director, ForLinux, added: “Lots of different factors are making people look outside. It may be that they don’t have the expertise or the infrastructure to support the applications in-house. If it’s all outsourced it’s all completely covered because the client can specify the SLAs [service level agreements] and contract.” Competition within the managed services industry – both from providers and in-house IT teams who have developed the same skills – has forced managed services companies to “raise the bar” in terms of performance whilst also driving down their operating costs. Hosting companies now offer a wide array of services which customers can choose from according to their needs. Consolidation of technologies Managed Hosting – A Buyer’s Guide (2005) Copyright © E-consultancy.com ltd 2005 – not for distribution to non-subscribers without written permission 8 The industry has also benefited from the consolidation of technology companies and standardisation which has made it easier for them to get economies of scale and refine their services. It is now much more realistic for a provider to offer services across all major technologies, or even to focus on particular technologies such as Microsoft platforms or Open Source (Linux). Neil Cresswell, of Intercea, added: “Not many years ago there were 10-20 manufacturers of servers, operating systems and databases. Now it is increasingly reducing to just a few e.g. Sun, IBM, HP, Cisco, Oracle, Microsoft, Dell, RedHat. “The tech set has shrunk massively making it easier for external service providers to service a bigger market with skills in just a few areas and making it more likely that customers can find a service provider with the skills they need.” Gavin Maguire, of Active 24, said that managed services providers needed to be pioneering in order to excel in such a competitive marketplace: “It is through being innovative that a leader will emerge from the masses within this marketplace. It is important for a provider to be one step ahead and to ensure that its products are first to market, so that it imprints its mark and shows its commitment to performance and service in managed hosting solutions.” 3.4.2 Customers move towards selective outsourcing The most successful providers in this space are able to offer a well-defined service proposition which clearly illustrates the benefits and savings of outsourcing particular aspects of their infrastructure. Our research suggests that there are many clients who are more prepared to outsource on a selective basis rather than paying for a more generic IT service provider to manage all their requirements. Richard Warley, Managing Director, EMEA, SAVVIS, said that many companies were disillusioned with the IT giants who may be able to provide some marginal cost benefits but who are not able to improve significantly a company’s IT technology and processes over the long term. “Going into a major outsourcing deal is fraught with risk and is a major leap of faith. The traditional model of outsourcing pioneered by the likes of IBM is what we call ‘taking your mess for less’ in that they are taking over your existing infrastructure and taking out some costs without really changing anything. “Doing it on a piecemeal basis is more sensible because you are not making a major ‘lock and stock’ investment and gambling everything on it working. If customers come to us they can outsource elements of their infrastructure -on an a la carte basis -but not necessarily the whole lot.” SAMPLE ONLY A full 127-page version contains vendor profiles and more market research, growth forecasts and a SWOT analysis. Subscribe for £99 to download E-consultancy’s exclusive reports for 12 months. Download the full version from: http://www.e-consultancy.com/publications/managed-hosting-buyers-guide-2005 Managed Hosting – A Buyer’s Guide (2005) Copyright © E-consultancy.com ltd 2005 – not for distribution to non-subscribers without written permission 9 The vendors who are able to win the trust of clients by demonstrating a precise proposition and benefits in a clearly defined area are in a strong position to win new business by offering additional services to their existing customer base. “It’s a relationship business which has to be built on personal trust between the company and the provider,” added Mr Warley. 3.4.3 Growth of e-commerce fuels managed hosting sector Increased levels of internet penetration and the unabated growth of e-commerce continue to drive business opportunities for managed hosting companies. The arrival of broadband has added further impetus to these trends with the online channel to market becoming increasingly profitable for traditional businesses as well as for those companies who sell exclusively online. “The e-commerce side of it is increasing all the time as more companies see the benefits of selling online and become increasingly aware of how much business is done through the internet. We have certainly seen growth in this area,” said Steve Nice, of ForLinux. Companies are now much more likely to have a detailed understanding of the way their choice of technology provider can impact on customer experience. Suppliers are working with businesses to ensure that they can offer an excellent user experience at all stages of interaction with their customers. Businesses therefore want managed hosting partners who can help them deliver an optimal website in terms of usability and responsiveness, as well as availability. The growing importance of a robust and well-performing website is reflected in the trend towards independent site monitoring and performance testing services such as those offered by Key Note (www.keynote.com), Site Confidence (www.siteconfidence.co.uk) and SiteMorse (www.sitemorse.com). SAMPLE ONLY A full 127-page version contains vendor profiles and more market research, growth forecasts and a SWOT analysis. Subscribe for £99 to download E-consultancy’s exclusive reports for 12 months. Download the full version from: http://www.e-consultancy.com/publications/managed-hosting-buyers-guide-2005 Managed Hosting – A Buyer’s Guide (2005) Copyright © E-consultancy.com ltd 2005 – not for distribution to non-subscribers without written permission 10 3.4.4 Resurgence of ASP business model drives business for managed hosting providers Although the ASP (application service provider) model has been around for a few years, it is only recently that it has started to become widely used by businesses, presenting new opportunities for managed hosting companies. The power of this model has been demonstrated by the success of salesforce.com in its delivery of applications though a website. Neil Cresswell, of Intercea, said that delivering software as a service was now a proven business model. “When ASP started a few years ago it didn’t really take off in the way that was predicted, but now services like salesforce.com and Oracle on demand are proving that delivering software as a service is a very valid business model. “However, while these companies can afford to invest millions on setting up the infrastructure, people and tools needed to deliver their service to many customers, the smaller software companies with maybe only a few customers, can't afford to do that and need an external service provider partner to deliver the service. We are getting tens of tier 2 and tier 3 software companies coming to us wanting to deliver their software as a service.” 4. Costs and Pricing Models The cost of managed hosting can vary widely depending on the range of services you are interested in. Shared hosting can cost as little as a few pounds per month but managed hosting with a fuller suite of services is likely to cost upwards of several hundred pounds per month. Differences in prices between providers will generally reflect the sophistication of equipment and architecture and the level of account management required. Services such as application support will obviously make the service more expensive but any additional costs incurred need to be considered in the context of the internal costs of reproducing the same service. Providers will generally charge a fixed monthly rate which will be calculated according to the scope of the services and support which are outlined in the Service Level Agreement. Providers will often offer a cheaper monthly rate if the customer commits to a longer contract (e.g. 24 months). Some providers will charge a fixed amount -or calculate a charge based on a daily rate -to cover the initial set-up costs. There should not be any “hidden extras” because the SLA should set out exactly what is provided – and, just as importantly -what is not provided as part of the flat monthly fee. It is important to be clear about what circumstances could result in extra costs for your business. The customer also needs to be aware of “variable” costs. In particular, bandwidth usage is typically capped to an amount written into the SLA and anything over that is charged at a per GB rate or in bands. Some may regard this as unsatisfactory because it is “punishing a site for its success” in that greater volumes of traffic mean greater costs. If the customer is to be charged for additional bandwidth, it is worth negotiating a cap or limit to what this can amount to. It is also worth establishing what will happen to costs (and services) in the event of a Distributed Denial of Service attack when a vast amount of unexpected traffic could be trying to reach a website. Managed Hosting – A Buyer’s Guide (2005) Copyright © E-consultancy.com ltd 2005 – not for distribution to non-subscribers without written permission 11 Some of the companies profiled in the last section of this report have stated that information on costs is available only on request while others have provided more detailed information about their costs. For example, Globix offers a dedicated hosting service called Precision Hosting for which it charges £350 per month. For those businesses wanting a no-frills service, Namesco charges as little as £4.99 plus VAT per month for its most basic shared hosting offering. 4.1. Utility model The utility business model, whereby customers pay for services according to how much they use them, is beginning to make inroads in the UK because it enables customers to spend their IT budgets more efficiently while also reducing the complexity of their internal IT structures. The model means that customers do not have to predict their IT requirements so far in advance because they can scale their IT infrastructure up or down according to demand. According to SAVVIS, its utility services now account for about 25% of new business. Explaining the benefits, Richard Warley, of SAVVIS, said: “Under the old model you would have to scale for the peak requirement and leave that infrastructure in place. We can achieve real efficiency through proper utilisation by managing capacity across different industry sectors.” Whilst this model has an obvious appeal, not all providers are offering it yet because of the difficulty in making the model financially viable from the point of view of the service provider. SAMPLE ONLY A full 127-page version contains vendor profiles and more market research, growth forecasts and a SWOT analysis. Subscribe for £99 to download E-consultancy’s exclusive reports for 12 months. Download the full version from: http://www.e-consultancy.com/publications/managed-hosting-buyers-guide-2005 Managed Hosting – A Buyer’s Guide (2005) Copyright © E-consultancy.com ltd 2005 – not for distribution to non-subscribers without written permission 12 5. Finding the Right Service Provider 5.1 Introduction In order to identify the most suitable provider it is important to understand that different companies will have different expertise and services. The detailed company profiles and market positioning charts contained in this guide will help you to find the right match. This section contains some key questions and considerations to keep in mind -and some pitfalls to avoid. Some of the issues are specific to managed hosting providers whilst others are relevant for any relationship with a supplier. 5.2 Do you need to outsource? • What do you gain from outsourcing in terms of reduced costs, reduced risk and reduced internal operational complexity? (Please refer back also to section 3.5 on ROI opportunities) • To what exent is it possible to quantify any savings and benefits? o Are you in a position to do a detailed cost/benefit analysis? o How much would you need to invest to provide a comparable service in-house? • Are the functions you wish to outsource strategic to your organisation? o If they are, then what would you lose by not having them in-house? o If they are not strategic, will outsourcing enable you to focus on the core competencies which make your business profitable? • How much do you need to outsource? o Do you want to outsource some fundamental, well-defined services or do you want to benefit from a full range of offerings which may be available? (Please refer to sections 7 and 8 for more details on the type of services available) 5.3 How do you select a vendor? • What is your budget and what services can you realistically afford? • How business-critical to your business are the areas you are looking to outsource? o Is it worth making savings in some areas while paying for the best service in others? • What buying criteria are you using to select a provider? o Is cost your only driver or are you prepared to pay extra for best of breed services tailored to your specific requirements? o How important is proven experience, customer testimonials and confidence that your provider can deliver? • Are you seeking a strategic relationship with services which are tailored and high-value, or do you want something more transactional? o Are you willing to pay for a proactive service or are you happy with something reactive? Managed Hosting – A Buyer’s Guide (2005) Copyright © E-consultancy.com ltd 2005 – not for distribution to non-subscribers without written permission 13 5.3 How do you find the best fit with your own organisation? • Do you want a global provider or a smaller company – a vendor with a size and reputation in line with your own business? o Is the company financially stable? o Will the provider be able to cope with the growth of your own business and increased demands for service? • Would you prefer a services provider with a proven track record in a particular technology? (e.g. Microsoft or Linux) • Do you want a network-focused provider or a services provider which relies on another ISP for connection? • Have you met the customer-facing employees your organisation will be dealing with? o Will there be a single point of contact or will you be dealing with a helpdesk rather than named individuals? • Do you want to see the provider’s facilities first-hand? 5.4 What type of Service Level Agreement do you want? • Is the SLA tailored to your own requirements so you are getting higher levels of service in the most important areas? • Will you be able to trust the provider’s reporting or will you pay for a third party website monitoring organisation to provide independent data about quality of service? An E-consultancy report specifically about Managed Hosting Service Level Agreements will be published at the end of August, 2005. 5.5 What procedures does the provider put in place to prevent serious problems, and what happens if there is a disaster? : • What is the procedure for back-up, disaster recovery and continuity planning? • Are you clear on your own responsibilities as a customer? • What is the process for resolving problems? • Are certain levels of response time guaranteed? • Does the provider issue “trouble tickets”? • What happens if there is a malicious third party attack? Managed Hosting – A Buyer’s Guide (2005) Copyright © E-consultancy.com ltd 2005 – not for distribution to non-subscribers without written permission 14 6. Market Positioning Charts 6.1 Explanation for Chart 1 – Business Model The vertical axis charts to what degree the services provider is focused on providing managed services compared to having a more basic colocation and/or hosting proposition. The horizontal axis charts to what extent the profiled company has a business model entirely based on managed hosting, versus offering this within a wider portfolio of IT services. For example, a company positioned in the top left quadrant typically differentiates itself by concentrating exclusively on high quality services in the managed hosting arena. Focus on ‘no-frills’ co-location/shared and dedicated Servers Managed Services We operate exclusively in the hosting/managed services space We offer hosting/managed services as part of a wider IT offering Where we are now Where we are going SAMPLE ONLY A full 127-page version contains vendor profiles and more market research, growth forecasts and a SWOT analysis. Subscribe for £99 to download E-consultancy’s exclusive reports for 12 months. Download the full version from: http://www.e-consultancy.com/publications/managed-hosting-buyers-guide-2005 Managed Hosting – A Buyer’s Guide (2005) Copyright © E-consultancy.com ltd 2005 – not for distribution to non-subscribers without written permission 15 6.2 Explanation for Chart 2 – Server Technology Supported The vertical axis charts to what extent the hosting company supports a certain type of technology versus being able to support all technologies equally. The horizontal axis charts whether, in particular, the company is more focused on Microsoft Windows or open source. For example, a company positioned in the top right quadrant has differentiated itself by focusing on open source technology. Technology agnostic Focus on particular technology Windows Open Source (Linux) Where we are now Where we are going SAMPLE ONLY A full 127-page version contains vendor profiles and more market research, growth forecasts and a SWOT analysis. Subscribe for £99 to download E-consultancy’s exclusive reports for 12 months. Download the full version from: http://www.e-consultancy.com/publications/managed-hosting-buyers-guide-2005 Managed Hosting – A Buyer’s Guide (2005) Copyright © E-consultancy.com ltd 2005 – not for distribution to non-subscribers without written permission 16 6.3 Explanation for Chart 3 – Typical Customer Profile The vertical axis indicates the type of client relationship the company enjoys, in terms of whether its customers tend to be more focused on quality of services or on price The horizontal access charts whether the service provider’s customers are generally large enterprises (e.g. Blue Chips) or small and medium-sized organisations (SMEs). A provider in the top right quadrant will generally have strategic relationships with more tailored services, whereas a provider in the bottom left quadrant will typically be competing for the business of smaller companies by offering more standardised services at a highly competitive price. Client’s first priority is generally around price Client focus is on quality of services more than on price Clients are generally at lower end of market Clients are generally higher end of market Where we are now Where we are going