VPS Market Forecast

February 24, 2011 | By

More and more small and mid-sized businesses are turning to the web in order to reach their customers, exchange information, understand market trends, and conduct day-to-day business. To do this, they are turning to virtual private servers, or VPS. This type of server gives the appearance and capabilities of running their own dedicated machines, while not having to worry about the high costs associated with real dedicated hosting. The cost of personnel to maintain the dedicated company server, energy, and equipment all add up. These costs are something small and medium sized businesses just can’t afford. Hence, 2010 was the year when virtualization deployments saw an increase of 28%, with a borderline 50% adoption rate for production.

Looking back at the 2009 report, VPS was a big blessing for the IT enterprise when virtual workload deployments exceeded physical workloads and although midway into 2010 there may seem to be a saturation in the market due to the numerous VPS service providers available, the fact remains that there was still room for more. As such, 2010 was definitely the year virtualization became mainstream. The number of enterprise IT adoptions of virtualization went on the rise and was expected to continue for most of the year. However, as more and more businesses became aware of the advantages of server virtualization and discovered different ways of projecting their products and services, deploying virtual data centers became quite a viable solution as more services like VPS was still needed.

Larger clouds then got ready to take over the VPS. Such clouds along with all the hype provided competitive services and prices while giving conventional regard of cloud computing on a self-service basis, thus capturing the VPS market. From the looks of things, 2010 showed us that the cloud is here to stay. Which leads me to this year 2011: where the forecast is a massive growth in hybrid cloud computing.


Cloud Hypermarket Infographic 2010
Infographic by Cloud Hypermarket


IT proceeds to inspect how they can consolidate resources and cloud hybrids is just the right blend of on-premises web services, off-premises hosting, and cloud deployments. The catalyst for this IT cultural shift is that large web hosting providers that are authorities in the hosting industry are now creating somewhat cloud like solutions. What we’ve seen in 2010 is but a preview, and they may very well be on the verge of an innovation that’s more than cloudy; with chance perhaps there may be even ground-breaking developments toward “hosted virtual desktops” which in itself would redefine the term “web host reseller”.


By Gwen Davis

Gwen Davis is the Site Manager of Hosting Observer and Web Hosting Search – Objective web hosting reviews of popular web hosts. A firm supporter of open source, she also blogs for Tek-Tips.NetHawk and AllForLinux.com. If the article has been helpful to you, you can follow the author @GwenDCipher.

Filed in: Web Hosting | Tags:

Comments are closed.