Analyzing And Understanding Web Hosting Companies Internal Issues

Share your valuable feedback, comments or suggestions on Internal Issues

Internal Issues

Web hosting companies work in a cross-culture environment. Hence, understanding the customer is a big challenge. Further, satisfying each is tough and needs time and resources.

Single-Stop Shop – Internal Issues

Another major weakness of hosting companies is that they are not aware of the core competencies on which they are masters. They want to sell every hosting service like a single-stop shop. The primary hosting services include Shared Hosting, Reseller Hosting, VPS, Dedicated Servers, Cloud Hosting and other related hosting products or services.

Lengthy Signup Process and Complex Payment Modes – Internal Issues

In search of legitimate customers, most hosting companies ask for identification proof or payment made through PayPal. They are undoubtedly doing right, as the industry is full of fraudulent customers. Most customers pay using the credit cards of people who may be in a relationship or buying hosting services.

The designers and developers buy hosting services in the name of the customer name and use their credit details or ask the owner to pay. The credit cards are in the person’s name, not in any company’s name. But, again, when buying hosting services, if there is any mismatch, the signup account goes to fraud, which is not moderated by most. Hence, they lose new signups, especially from developing countries, because of the above issue.

Lack of Proper Managers – Internal Issues

Managers can perform a strengths/Weaknesses analysis to evaluate the business. And if they are unaware of the weaknesses, how can they fix them? Thus losing the market, which they could acquire by developing new strengths and coping with gaps.

Review Objectives – Internal Issues

Most hosting companies don’t review their objectives concerning magnitude and time. The industry moves very fast. New developments and technologies emerge daily. That led to the change in hosting plan structure, target customers, and required resources.

Lack of Contingency Plan – Internal Issues

Most Reseller hosting companies depend on parent providers for support, backup, and resources. They don’t create contingency plans for risk containment, improvement, or innovation. They run the business to get the lowest price reseller plan and resell resources at the right margin to increase profits. Furthermore, they overlook the new opportunities to improve ROI. They don’t have a long-term business growth vision.

No leadership left in the market – Internal Issues

Although most hosting companies state they are leaders, particularly hosting services, the market is hyper-competitive. The profit margins are low as abundant underpricing competitors exist in the market. Every hosting company states that they provide high-performance hosting services.

The hosting customer is so confused that it needs quality leadership to guide the best features in plans, inspect and monitor hosting companies regularly and carefully and provide trusted, unbiased reports.