Report: IBM # 1 in U.S. Web Hosting Services Market

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ARMONK, NY - 23 Aug 2004: 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 the top 22 companies, says IBM's overall share of the Web hosting services market rose to 24.8 percent in 2003, up from 23.5 percent in 2002.

IBM's marketplace share is greater than the combined shares of the next five competitors in the ranking, and more than three times the share of the #2 ranked company, according to IDC.

"IBM once again held the top market position and continues to gain share," said IDC's Melanie Posey in her report: U.S. Web Hosting Services 2003 Vendor Shares.

According to the report, the U.S. Web hosting services market is forecast to grow to $6.1 billion in 2004, up 10.6 percent from $5.5 billion in 2003, and is predicted to increase to $10.4 billion by 2008.

"IBM is excited to be recognized again by IDC for its Web hosting leadership," said Mark Morin, general manager, IBM Global Services. "With data centers worldwide, IBM continues to win in the marketplace by combining its strengths in hosting, infrastructure and application management, as well as security and business process transformation services, to provide what clients need to become on demand businesses."

IDC defines Web hosting as the "services related to the development, management, and maintenance of the infrastructure that supports businesses' Web sites and Web presences." These services include:

Going forward, IDC said that key competitive differentiators will be "breadth and depth of service capabilities and technology expertise; customer service and support (including service level agreements and the availability and functionality of self-service customer management portals); and flexible services that offer customers a degree of hardware, software, and value-added feature selection."

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