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Home > Learn More > Why is Web Hosting Cheap Today?

Why is Web Hosting Cheap Today?

In the early 1990's when the internet was in its infancy, only the wealthy and big businesses were creating web pages. While they were still valuable tools, the internet was not as crucial to the livelihood of people as it is today and many people had no access to a computer, and if they did were unlikely to get online access.  Because only a few visionaries understood the applications of the internet, there was very little competition. Web hosting companies could charge whatever they wanted and they had no incentive to compete and offer things like reliable technical support and reliable service.  As the world wide web grew and evolved, web hosting changed.  As things like free email, instant messaging and chat rooms grew exponentially, evolution was mandatory. 

In the early days, big companies ran the servers.  They had a lack of competition and there was no limit to what they could charge.  Very few people understood how the internet worked and what the technology required to maintain.  When it became evident that the internet was no longer a fad and would become vital to the success of business, fast and inexpensive communication became a critical need.  At first, things like server space and database management were the key issues.  People who understood these advanced technological concepts with ease were at a distinct advantage.  Many optimized this advantage by jumping into the fray with their own web hosting companies and gave a choice to all those interested in creating a website, be it for business or pleasure.  After a few middle-sized companies successfully ran against the big dogs and technology became more inexpensive, it did not take long for individual web hosting services to decide to throw their hat in the ring.  As more and more independent companies started offering a choice, prices became increasingly competitive. 

Free web hosting services have existed for many years.  In the mid-1990's Geocities was an extremely popular way to dip your toes in the water and learn about this new world of virtual reality.  In addition to advertisers not yet understanding the value of a captive audience via the internet, new world wide web denizens did not yet understand they had a choice against the irritating blinky banners and pop-up windows designed to capture their attention and dollars.  Free web hosting services are still flourishing and are a great resource for beginners and those who do not desire to learn HTML and other technical specifics. 

As more and more beginners have decided they want to create a website but are willing to pay a small fee to avoid advertisements, a market for simple but comprehensive website designing tools has developed.  Web hosting sites are taking the hassle out of creating your own website but still allowing customers the freedom to create their own space.  This has been just another way to keep the market competitive and make having a website accessible to anyone.  It has also allowed small businesses to compete in an increasingly e-commerce world.  As society moves to purchasing many things online and researching those purchases online, it is crucial for businesses to keep an informative and entertaining presence on the world wide web. 

Today, the internet continues to change to accommodate a growing need.  As more and more people branch out and create their own little space, whether it be for blogging about a journey across the country or sharing music files, companies are continuing to compete.  This competition is great for the little guys trying to keep costs down and do business in a virtual world.

 
 
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