Is the web hosting industry saturated?

A little bird suggested to me the other day that I should look at setting up a hosting company.  This is something that I’d investigated doing in the past, and to be honest it seemed to me at the time that the web hosting market was pretty saturated – especially in the selling the rackspace and hardware.

However, it’s occurred to me that there may be possibilities to base a business on hosting if you can add value to it – Cloud services, on line backup facilities, hosted business applications etc.

The likes of Apple, Google, and Microsoft are eating the business for commodity online services such as email, media and the like, but there’s plenty of specialist niche hosting markets out there still to be exploited especially in the b2b environment.

Smart businesses are ahead of the curve, and hosting their business systems as part of a fully managed support contract, so perhaps the web industry isn’t quite as saturated as first appears and there is profit still be be made, especially using open source business software to minimise overheads (always useful in business!)…

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