Wednesday, April 9

Disrupting the Hosting Industry

Google have done it again...perhaps. Following Amazon's lead into 'cloud computing' last night they launched the Google App Engine. And unlike Amazon's it's a free (so far) application hosting and development environment. Google get your data, personal and business, you get free hosting.

The established hosting industry will be reeling from this move. How do you compete with a free service provided by arguably the most reliable web-service in the world?

In international trade terms this might be called 'dumping' - they are peddling something below cost to take over a market. The approach is no different to what they did in Analytics, Books, Docs...

In all cases Google are helping bring costs right down. However, they are also crushing the infrastructure services and businesses that underpin internet business (payment, advertising, analytics, hosting). Where next? Content?