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10 Hosting Trends for 2022/2023: Latest Predictions & What Lies Beyond

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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).

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).

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 email 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.

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!