Apr
30

Why is Age a Good Indicator in Web Hosting?

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I was recently asked (as in recent, this morning) why do some people use Web hosting age as a form of litmus test as far as gauging hosting performance?

Well it’s not necessarily the test, there are a few hosts who have been around for a while and are still horrible, but for the most part the age of a host shows that it is stable, profitable, and, by extension, probably fairly good at keeping customers (hence price is either really cheap, features are really high, and/or customer support is very good).

A host who has been around for 10 years plus such as dedicated server host Superb or OLM will probably be around for a while. If we look at the life cycle of a host, the first few years are the growing stage. If the host doesn’t grow it gets bought out or it dissolves. During this time the host might grow through growing pains such as moving to a new data center or getting a large influx of customers and must expand their technical and customer support teams, etc.

After the grow stage comes the, monotony stage. From 4-9 years the founders of the company start to look to get bought out if they become tired or bored with the industry. Hosting is a very demanding industry and some people would rather cash in then spend another moment in it. It is also during this time when the founders might find out that really enjoy hosting and looking into the long haul.

About ten years plus, the host is probably in it for the duration. These companies are normally considered fairly stable and profitable (or else they would have gone out of business already). If they are profitable then it means the host can keep customers. Many hosting plans start as a loss as far as money goes and only become profitable the longer the customer stays and/or they move up the product chain (adding extra features, higher tier service plans, etc.). If a customer is around long enough to turn a profit for the company, than the company is probably doing something right the majority of the time and hence the extension (fairly good at keeping customers, as stated previously).

Again there are always exceptions to the rule. But for the most part, age is a good indicator in determining web host success.

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