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Procurement Market Intelligence Report

Web 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 Web Hosting Services?

What is the average price of Web Hosting Services?

This procurement report includes pricing information to help you purchase Web 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 Web 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 Web 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 Web 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 Web 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 ?

In 2020, ProcurementIQ estimates that there are 2,904 web hosting service providers in the United States. Collectively, the top four firms, GoDaddy, Endurance International, Alphabet (the parent company of Google) and Amazon, account for roughly 40.0% to 50.0% of the market's revenue, indicating a medium level of market share concentration.... Subscribe to learn more.

Questions to ask potential suppliers

How can I gain leverage during negotiations?


How long does it take to upgrade to a more powerful server?

What are the maximum bandwidth and processing speeds available?

Will you notify us when bandwidth limits are reached?

What happens if bandwidth limits are exceeded?

Additional Services

What services does your company offer in addition to website hosting services?

What expertise do you have beyond web hosting services?

How long have you been offering these services?

Can these services be packaged at a discount with web hosting services?


What security measures do you have in place to protect data?

When was the last time you experienced a security threat? How did you find out about it and what did you do upon its discovery?

What kinds of outside security providers or consultants does your company work with?

How do you stay up to date on the latest security threats and defense trends?

Do you provide automatic backups in case my data is lost?

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Key elements for every RFP

What should my RFP include?

Project Budget

Buyers should specify their budget for the service.

Buyers can reference the Benchmark Price and Total Cost of Ownership sections of this report for assistance in creating a budget.

Selection Criteria

Buyers should evaluate potential suppliers based on their ability to meet the functional and technical requirements described in the RFP.

Buyers should evaluate potential suppliers based on their ability to provide a superior level of customer service, as evidenced by client references.

Buyers should evaluate potential suppliers based on their ability to provide regular enhancements and upgrades.

For a detailed list of key selection criteria, buyers should reference the Buying-Decision Scorecard section of this report.

Project Schedule

Buyers need to include the date when proposals are due and when the award will be announced.

If onsite assistance is required, buyers should include the date by which it should be completed.

Buyers should outline the terms of the contract and cancellation policy.

Evaluate major factors to mitigate risk

How risky is the supply chain?

The risk of input price shocks or discontinuity of service due to supply chain issues is moderate for the web hosting services market. The main source of supply chain risk in this market comes from the computer and server manufacturers that supply the equipment used to host websites. The computer... Subscribe to learn more.