A strong web presence is one of the essential elements for buyers to enhance their brand value and build a strong connect with their customers. Even the SMEs are working towards enhancing their web presence, which according to procurement specialists is one of the major drivers of the global hosting services market. Category managers give preference to suppliers who provide least network latency and implement adequate security measures to protect the data.
What are the major category drivers of hosting services?
The booming e-commerce market and the rising demand from MMO gaming sector are the two crucial category drivers of hosting services market. The e-commerce market is expected to reach US$3.5 trillion by 2020, which explains why procurement teams are aggressively looking for suppliers of e-commerce hosting service.
When it comes to the MMO gaming sector, game developers often lack the ability to host games on their own or to meet increased demand across the globe. Procurement managers, thus look out for third-party suppliers of game hosting services for seamless hosting of the games.
As a supplier, do you follow these sustainability practices?
From procuring services from suppliers who provide best services, in the most cost-effective manner, buyers now prefer service providers who focus on adopting sustainable practices. Sustainability practices, not only contributes to a greener earth, but also boosts the goodwill of both the buyer as well as the supplier of the hosting services. Some of the key sustainability practices followed by suppliers of hosting services are:
Data centers are one of the major consumers of energy and contributors to the carbon footprint. According to Technavio’s procurement market intelligence report, the energy consumed by data centers in the US is equal to that consumed by 5 million houses put together. With the number of websites increasing year after year, it is practical that suppliers switch to green energy to bring down the carbon emissions. Major suppliers like Endurance International Group, Amazon Web Services, and HostPappa are switching to green web hosting to overcome this challenge.
Green web hosts use renewable sources like wind and solar energy to power their servers. Along with using energy efficient modes of power generation, service providers also focus on safe disposal of damaged and old computers and adhere to paperless billing measures.
Adoption of technology
Another major sustainability practice followed by suppliers is merging latest technology with their services. For instance, with modular data centers, suppliers can easily bring down the energy consumption by 15%-30%. As the modular data centers are purpose-engineered and portable in nature, they can be deployed anywhere. Procurement specialists prefer this product as it provides the optimal power use effectiveness (PUE). Also with these data centers are flexible and scalable in nature, buyers see it as one of their best investments.
Collaborating with NGOs
Lately, category managers prefer to connect with suppliers who take CSR as a priority task. Due to this trend, suppliers of web hosting services are now collaborating with NGOs like World Land Trust and International Tree Foundation to work towards the creation of a greener earth. Leading suppliers like WebHostingBuzz and RackSack are undertaking activities like planting and preserving trees along with initiatives like one plant for one server program.
To know more about the category negotiation strategies involved in the hosting services market
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