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Procurement Market Intelligence Report

IT Hosting Services
Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for IT Hosting Services?

What is the average price of IT Hosting Services?

This procurement report includes pricing information to help you purchase IT Hosting Services. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.

Has the price of IT Hosting Services been rising or falling?

Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.

I’m not ready to purchase IT Hosting Services yet. Will I pay more if I wait too long?

We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.

What other costs are associated with purchasing IT Hosting Services?

Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for IT Hosting Services with a reduced risk of unexpected costs.

See how we display average pricing information, trends and market data.

Find the vendor to meet your needs

Where can I purchase ?

Market concentration in the IT hosting service market is high. In 2021, ProcurementIQ estimates that there are 2,140 IT hosting service providers in the United States. Collectively, the top four firms account for more than 50.0% of the total market revenue. In particular, buyers have little negotiation leverage with Subscribe to learn more.

Questions to ask potential suppliers

How can I gain leverage during negotiations?

Service Flexibility

What changes do you expect to see in the hardware or software incorporated into your networks in the near future? How will these changes affect our network's performance?

How will adding users to the network affect its performance?

How often will the network have to be restructured? How will these changes affect my total cost of ownership?

How often will the software have to be updated or replaced? How will these changes affect my total cost of ownership?

Relevant Experience

What is your previous experience working within our business sector?

How comparable is our IT infrastructure to those with which you most commonly work?

How extensive is your knowledge of the regulations affecting the security of information within our business sector?

How would you describe the types of clients you primarily work with?

How are the operations of your other clients similar to and different from ours? What challenges will this pose?

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Key elements for every RFP

What should my RFP include?

Project Budget

Buyers should include budgetary constraints for services.

Buyers should define payment schedules.

Buyers should state how often pricing can be adjusted.

Vendors should define a cost breakdown of services (such as labor) and materials that are required to meet the scope of work.

Selection Criteria

Buyers should evaluate suppliers on whether they price services competitively.

Buyers should evaluate suppliers based on their understanding of the buyer's needs.

Buyers should prioritize vendors based on the long-term total cost of ownership.

Buyers should give priority to suppliers that are flexible with contract terms and conditions.

Buyers should request references from current and former clients to evaluate past service performance.

For other selection criteria requirements, buyers should reference the Buying-Decision Scorecard section of this report.

Project Schedule

Buyers should state the RFP's issue date.

Buyers should state the due date for any questions or clarifications from suppliers.

Buyers should disclose when they will answer any questions or clarifications.

Buyers should disclose the date of the award announcement.

Buyers should list the expected start date once a supplier is chosen.

Evaluate major factors to mitigate risk

How risky is the supply chain?

Supply chain risk for IT hosting vendors is moderate on average. Computer manufacturers pose the most risk due to its reliance on semiconductor inputs. The global supply of semiconductors is highly susceptible to natural disasters and geopolitical issues, such as the coronavirus pandemic, because of the geographic concentration of semiconductor... Subscribe to learn more.