IBM takes web services top slot

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IBM is the leading Web-hosting services provider in the U.S., according to a new report from International Data Corporation (IDC). The study, based upon research of 36 companies, says IBM's overall share of the Web Hosting market rose to 19.3 per cent in 2001, up 25 per cent from 2000.

That’s hugely lucrative in financial terms. Worldwide customer contracts for IBM’s Web-hosting services hit an all-time high in 2001, exceeding $2.4 billion. And it could get even better. According to IDC, the U.S. hosting market grew 25 per cent during 2001 to $4.8 billion, and is predicted to accelerate during 2002 with a year-over-year growth rate of 40 per cent. By 2006, IDC predicts the Web-hosting market will grow to $20.8 billion.

"IBM Global Services maintained its leadership position in the Web-hosting market in 2001," said IDC’s report: US Web Hosting Services Market Forecast and Analysis: 2001-2006. "The fact that Web-hosting is not the company's only line of business and its limited exposure to the colocation market have somewhat insulated it from the downturn in the economy."

IDC noted that IBM had "put into place a transition program to capture those customers migrating from other service providers and those interested in a secondary Web-site implementation for security reasons."

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