On-Demand Offerings Driving US Hosting Revenues

Increased spending on application hosting—CRM, ERP, compliance management, et al—will drive total US hosting service revenues through 2011. Application hosting will account for an increasing percentage of all hosting revenue—roughly two-thirds of all hosting revenues by 2011—with Web hosting accounting for the other third.

This report provides updated survey information that gauges take-rates for managed services in the US business market compared to results from a similar study done in 2006—specifically focusing on data that highlights the managed hosting market.

Also included is an overview of survey data that indicates current demand for utility computing services and where future demand will exist for these services over the next two years, and what effect this will have on the overall managed hosting market.

A forecast of US managed hosting spending through 2011, broken down into Web hosting and application hosting, is included in the last section of the report.

Hosted Applications Drive Hosting Revenues

Managed Hosting Gaining in Popularity Up-Market

On-Demand Service Adoption Growing Up-Market

Hosted Applications Account for Increasing Majority of US Hosting Revenue

Related In-Stat Reports

Methodology

Appendix

List of Tables

Table 1. US-Based Web and Application Hosting Revenue—2006-2011 (US$ in Millions)

List of Figures

Figure 1. Web and Application Hosting Out-Tasking Increasing

Figure 2. Hosting Gaining Steam in 100+-Employee Firms

Figure 3. Plans to Out-Task Broken Down By Vertical Market

Figure 4. On-Demand Services Gaining Traction Up-Market