HostReview.com Web Hosting Interviews

An Interview with
Web Hosting Roundtable - Industry Trends 2005: Guy Yalif, David Chao,Thomas Vollrath, Ivan Vachovsky, Lance Crosby, Curtis Curtis, Jeremy Sabil, Bevan Erickson, Kurt Daniel, Jay Adelson, Manny Medina, and Bob Leffler,

By Milena Sotirova
Editor DevStart, Inc.

February 09, 2005

1. Please can you tell us some words about you and your position in the company?
2. Where do you see the Industry growth in this starting year? What are the trends you are expecting to see growing in the next 12 months?
3. Discuss your vision for this year in regard to security. Do you see more challenges in this aspect for the Web Hosting Industry?
4. Where do you see the challenges before your company and how do you see overcoming the obstacles going along with the growth?
5. What will be the major acquisition you can predict for this year?
6. If you can summarize Industry 2005 in one sentence, what it will be?

3. Discuss your vision for this year in regard to security. Do you see more challenges in this aspect for the Web Hosting Industry?

Guy Yalif:
Security is very much on the mind of our customers and something we take very seriously at Yahoo!.� Yahoo! invests heavily in corporate security practices - and we pass that benefit on to our users.

Specifically, customers need to be able to easily set up industry standard SSL secured communications on their web site, as well as username and password-based security for different sections of their site.� Additionally, customers need to be able to extend security to the management of their web site by delegating management responsibility, such as ftp authority, to others using usernames and passwords.� Yahoo! Hosting services offer all of these features today.

David Chao:
Verio sees an undeniable need for secure, real-time network management with all of the necessary fully-managed security services such as managed firewalls, VPNs, intrusion prevention and monitoring.

As security becomes more complex, web hosts and managed security services providers will be challenged on the higher end with the need to converge multiple technologies onto one platform. The lower-end will see a greater desire for the same the complex security services from which their larger counterparts already benefits. The challenge here is to provide these managed services on a much smaller scale at a lower cost.

It becomes increasingly difficult for IT managers to stay abreast of evolving threats. One alternative to the costly task of hiring a dedicated security professional to work inhouse, is to tap into the expertise of a managed security provider. Taking this route will give businesses access to teams of security specialists trained in the intricacies of firewalls, intrusion detection and more, at an affordable cost.

Ivan Vachovsky:
I can't comment on the technology aspect of security. On the business side I see two potential challenges.� First, as the hackers become more sophisticated so will become the defenders.� This comes for a price, and some web hosts may not be able to soak such extra expense without increasing the price to the consumers. Second, if the courts decide to hold web hosting companies responsible for damages due to security breach, this may impact the operations and the cost structure in the industry.� In both cases smaller web hosting companies will be more vulnerable.

Curtis Curtis:
I see a greater emphasis on security. The cost is becoming exorbitant for hosting companies and with lower margins, more needs to be done in this area to ensure that hard won revenues are not lost due to security-related issues.

Jeremy Sabil:
System intrusion is on the rise - distinct increase in scans/floods/etc.

Bevan Erickson:
As the sophistication of security attacks increases, so does our need to put more effort towards our preventive systems and procedures. These have always been challenges we have faced, but the expectations within the industry are definitely greater than ever before. If your are in the hosting business, you are in the security business.

Kurt Daniel:
Security is more important than ever in the industry and will only increase as a concern in the future. Customers and vendors need to proactively ensure rock solid security. Security is in fact one of SWsoft's few core themes across our entire product line and particularly with recent versions. Further, we quickly fix and broadly communicate any security issues as they arise to limit any potential security risk.

Thomas Vollrath:
It is essential that we continue to be alert and flexible in order to be able to react quickly to new threats and challenges. The formation of partnerships will become more critical to increase the protection level against such attacks.

Jay Adelson:
The physical security of data centers is lacking in the majority of sites. The SAS-70 and other similar audits are becoming the norm, regardless of pre-certifications. RFPs from enterprises looking for Web hosting now include very specific requirements in this area.

Equinix has set the standard on physical security for the data center, and we continue to enjoy strong business success as a result.

Furthermore, reliability has also been an area of focus. As business continuity plans are executed, enterprises and content have focused on a need for network diversity and multihoming, regardless of the level of network expertise in-house.

Lance Crosby:
Security is the front concern for our company going into 2005. The Planet has invested heavily in DDOS mitigation, Network IDS, host based IDS, Firewalls, and other security features. We have focused on compiling a complete security blanket of products like Cisco Guard XT, Tipping Point, ISS, Private VLANs, and more including a 24/7/365 Security Operating Center. We believe the security challenges facing the industry will become more difficult for the smaller hosting companies to install and operate going forward.

Manny Medina:
Terremark believes that there will be a huge improvement in peer-to-peer security and the challenge is to educate the industry on ways to improve it. Terremark takes great pride in its commitment to IT education by partnering with Florida International University and the University of Miami.

Bob Leffler:
Security is very important to our customers. I spend the majority of my time with new clients reviewing our security policies and procedures to ensure that we can guarantee the security and privacy of their HR-related data in their LMS. As the volume of attacks from viruses and worms increases, security should be a major concern of any hosting provider. It's also creating a tremendous demand on our resources to ensure that our network perimeters can't be breached. Any hosting provider that isn't making a significant investment in infrastructure for security is asking for trouble. The challenge for most organizations will be finding the resources required to address the growing amount of potential vulnerabilities and attacks from the Internet.