The mass-market hosting sector is developing into a space that is fragmented, under pressure and transforming rapidly. These findings are contained in a report released today by New York-based Tier1 Research (T1R), an independent research firm that analyzes the financial and industry implications of developments affecting public and private companies within the hosting, IT, communications and Internet sectors. This is the fourth report in the 2007-08 T1R Mass-Market Quarterly Series – a series designed to provide timely analysis and perspective on key technology trends and marketplace developments in mass-market hosting.

T1R analysts believe that driving change in the mass-market hosting sector is the proliferation of wireless and broadband access, Web-enabled mobile devices, and the movement of personal and business lives to an online environment. This has created growing demand for a wide range of online services that now form a new layer of value that hosters are fighting to deliver to their customers.

"The transformation under way has forced hosters to reconsider old concepts, explore new opportunities and change the way they traditionally do business," said Philbert Shih, Senior Analyst at T1R and lead author of the report. "But it has also opened the door to increased competition as the likes of Google, Microsoft and others look to target the mass market for various types of Web-based services, of which Web hosting is just one, albeit an important piece."

T1R analysts find that social networks and functional hosting services continue to challenge hosters for market share. Shared and dedicated hosting have dominated the mass-market hosting sector for most of its history, but new technologies such as virtualization and open computing platforms like Amazon will test their staying power.

This 62-page report, titled 'Mass Market Quarterly Series: Spring 2008 Review,' recaps and analyzes the impact of key events in the past quarter and takes a closer look at some of the noteworthy trends. The report also takes an empirical perspective, tracking movements in market share while balancing historical reflections with a peek into the future.