UniteHosting

The evolution of industries contains four basic stages: introduction, growth, mature and decline. There has been considerable research done on the subject, but rarely do we see written material specifically addressing the stages as they apply to a specific industry. Most telecommunications industries and the web hosting industry grow under the recurring revenue business model: “Sell it once and collect until it churns”. The evolution of industries occurs at different rates for different reasons. Attempting to quantify the future change in each of the value drivers is the science. The value to each of these stakeholders changes over time through the evolution. It is important to note some industries evolve from the creation of a new technology such as paging, cellular, PCS, Internet access and web hosting, while others evolve from deregulation such as long distance, power suppliers and the CLEC (competitive local exchange carrier). There are winners and losers throughout the entire evolution of an industry. It is important to know how it effects you, whether you are a corporate manager trying to guess the future stability of an industry, an entrepreneur wanting to know the best time to sell your business, or a product or service supplier trying to quantify future demand of its products. There are not many sure things, every path has its risk and return characteristics, all we have is history to guide us throughout our business world