Report: Web-hosting firms doing well despite downturn

Despite being in a severe recession, one segment of the IT industry is thriving. According to a comprehensive report from Network World, web hosting companies such as Digital Realty Trust, Equinix and Internap are reporting revenue increases in the first quarter of 2009. Because companies have less access to capital, they are choosing to lease space in a data center rather than build a data center of their own. 

The CEO of Digital Realty Trust, which owns and operates Internet datacenter facilities told Network World, "The economic crunch we are all facing is forcing folks to be more creative and more open minded about how they deploy their businesses."

Gartner predicts that overall revenues are expected to practically double from $14.9 billion in 2008 to just below $29 billion in 2012.  Of course, web hosting companies are hardly expanding based on a "build-it-and-they-will-come" model either. While they are certainly expanding their facilities, it is based on real customer demands and space that has already been reserved.

For more on this story:
- check out this article at Network World

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