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Web hosting services still dominates xSP market

Numbers from IDC indicate that web hosting still rules the xSP market. However, the market could be poised to shift towards more sophisticated services.

Numbers from IDC indicate that web hosting still rules the xSP market. However, with only 5% of respondents considered increasing the purchase of such services in the future, IDC suggests that the market could be about to shift as xSP focus on new areas.

“Despite all the bad press, economics and financial brouhaha, customers are becoming more comfortable and more familiar with and gaining interest in using services from xSPs,” says Laurie Seymour, IDC’s xSP program manager.

The xSP market -- consisting of one-to-many, externally managed, network-delivered and fee-based services -- includes a wide and growing range of services such as content, business process or storage, for businesses and consumers.

As organisations become more familiar with sourcing service providers they will start to raise the bar on quality of service and support. According to IDC’s research, the two highest ranked factors that influence customers in their selection of an xSP is the ability to deliver on its service level agreement (SLA) and customer service.

“Those xSPs that focus their mantra around servicing customers in ways that ‘break the sound barrier’ for service delivery will offer an extremely valuable and almost irresistible value proposition to their customers,” comments Seymour.

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