(MyHostNews.com) A new report by Tier1 Research (T1R) shows that the content Internet infrastructure market will continue to grow rapidly through 2008. T1R analysts estimate that the total for 2007 Internet infrastructure revenue will reach $17,990.75m, which represents 26% growth over the 2006 total of $14,216.39m. Based on current trends in consumer behavior, T1R expects the market for Internet infrastructure to grow another 24% in 2008.

The managed hosting sector remains the largest sector within Internet infrastructure and has experienced tremendous growth in the last 12 months – in excess of 30% – and will continue to show similar growth rates moving forward. Several trends account for that strong growth, including increased managed hosting adoption by SMBs and mid-tier enterprises and hosting for software-as-a-service (SaaS) providers. Moving forward into 2009 and 2010, an array of new utility storage and hosting services will continue to fuel strong growth.

These findings are contained in a report released today by New York-based 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. The report is the second in a series designed to provide timely analysis and perspective on key technology trends and marketplace developments in the Internet infrastructure marketplace. It includes sector-specific examinations of shared hosting, dedicated hosting, managed hosting, Internet content delivery, colocation and interconnection.

“While the managed hosting sector sees tremendous growth, a massive transformation in how shared hosting services are successfully marketed and sold is well under way,” said Daniel Golding, senior analyst at T1R and author of the report. “Disk space and bandwidth is no longer a selling point, and customers are now looking for the functionality that enables them to do things like blog, share photos, publish profile pages on a social network or sell things online. As a result, shared hosting has quickly commoditized and become a common denominator of sorts. In other words, shared hosting is no longer just about selling Web space for static websites; rather, it is more about the many different things that can be done in a hosted environment.”

This 36-page report, ‘Internet Infrastructure: Market Overview 2008,’ provides an idea of the overall size, scope and growth of the sectors within the Internet infrastructure market. It spotlights various prominent firms in each segment and gives the market outlook for each. It also includes an overview of the Internet infrastructure taxonomy, including the breakdown among various types of Internet infrastructure services.

About Tier1 Research
T1R, a division of The 451 Group, analyzes the financial and industry implications of developments affecting public and private companies within the IT, communications and Internet sectors – with a particular focus on hosting, Internet infrastructure and IT services. Clients include institutional investors and technology vendors, along with end users and venture capitalists. These clients leverage T1R’s analytical insight for idea generation, trend identification, due diligence and grounded opinions, as well as metrics and forecasts on companies and industries covered.
T1R is headquartered in New York. For additional information on its research coverage and services, visit www.t1r.com.

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