Web hosts struggling?

Matt Heaton, the founder of Bluehost, writes on his blog that Utah is the place to succeed. Bluehost can keep its costs down in Utah.

I still think that Bluehost offers excellent value, though I’m still reeling from being told by customer service that they can’t sell me any more bandwidth because they lose $25 per month on their package as it is.

We’ve put our latest post to our Storynory podcast for children on Libsyn. I note from their blog that they all work at Libsyn without any salaries at all.

It seems to me that the publishing revolution that is blogging, video/picture hosting, and podcasting has made the hosting business very competitive indeed. People are actually using the bandwidth that they buy, instead of leaving it redundant. This is costing the host providers real money - even if they do live in Utah where you can buy 3000 sq ft home for around $200K.

This entry was posted on March 28th, 2006 and is filed under Blog Home, Blog Tips, How? What?. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or Trackback from your own site.