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UK hosting sector to grow

Internet marketing publisher E-consultancy has released its latest research into the managed hosting sector, which will experience double-digit growth in 2005. The research is featured in E-consultancy`s Managed Hosting UK - A Buyer`s Guide, thought to be the first dedicated report of its kind for the UK market.

The market for managed hosting was estimated to be worth between 250m and 300m in 2004. It is expected to grow by around 23% this year, to be valued at up to 369m. The sector has the potential to grow to a much more substantial size in the next few years, partly due to the growth in e-commerce adoption by SMEs and FTSE500 companies. Some sectors - such as financial services - are driving growth due to regulatory demands. Other high-growth sectors include transport, travel and publishing, according to interviewees.

Another key reason for this growth is the realisation within client organisations that money spent on internal server operations is often substantially higher than outsourced managed hosting costs. Only the largest businesses can truly achieve cost benefits from managing hosting internally.