Why is Web Hosting Cheap? The Reasons

Why Web Hosting Cheap

When you look for web hosting for your website and come across crazy low priced offers. You naturally think why is web hosting so cheap nowadays? In this article we are going to list some causes of this cheap web hosting. 

When the internet started. web hosting services were exorbitantly expensive and were mainly used by bigger companies, governments and very few rich individuals who had enough money to buy web hosting space and servers. 

Cheap Web Hosting

But the times have changed now. Now you can see that almost every other person has a website. This is because web hosting has been becoming cheap all along the previous decade. Given below are some of the factors that have contributes towards cheapness of web hosting. 

Web Server Cost Going Down

The prices of hardware in the early years were just too much. Because of the limited number of web server manufacturers and vendors. Because of the little competition the manufacturers could just price these high and people were forced to buy at those prices. 

Since web hosting needs hardware servers, the web hosting comapnies had to buy these at high pricces and it was natural that they would pass on the price effect to the buyers of web hosting. However, situation is a lot different now. The servers manufacturing cost has dropped significantly. Now since web hosting hardware is available at a cheaper rates. The web hosting cost has also dropped in a big way over all these years. 

Sever Software Development

The software required to run the web hosting servers was also very costly in the beginning. In fact, all the companies custom built it. Only a selected number of programmers working in big companies like Apple, Microsoft etc knew how to develop web hosting server software. Since this was a costly endeavor. Web hosting companies also passed on these costs to the clients which resulted in higher cost of web hosting. 

However, the good news is that now many graphical dashboards are available commercially. And it has become really easy to set up a web hosting company. 

Web Hosting Service Competition

Since it has become so easy and affordable to start a web hosting company. There are literally thousands of web hosting services around. They are all trying for the same customers/clients. In trying to win over clients they offer many different web hosting packages at very affordable rates for managing to remain a going concern.

Web hosting has become so cheap that now you can get shared web hosting plan for as cheap as $1.00 per month. Almost all the web hosting companies also offer discount coupons to jump ahead of competition and to win more customers. 

In short, many groundbreaking hardware innovations, software development and aggressive marketing tactics among competing companies has resulted in reduced cost of hosting websites on internet. This cheap web hosting has helped in spreading the outreach of word wide web to billions of people and millions of people now own a website. 

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