Option only for small businesses

Feb 7, 2008 13:22 GMT  ·  By

Amid great turmoil, Yahoo! is looking back to where it did manage to impose its presence on the market and is trying to feed off of that in order to keep going. It's the corporate version of people looking back at what they have accomplished and deciding that if they were able to do that, they could overcome the problems up ahead.

The difference that being a giant company provides you with is that you can rely on something more than pure moral, although that is what keeps you going at the moment. It goes back to the small businesses because it dominates the market there with one third being hosted on its servers, and decides to increase the storage limit to absolute infinite (yeah, like somebody's going to get there anytime soon or ever, for that matter) and modifies its pricing to go with the gift: a flat rate of $11.95 per month. Previous pricing for the services were $11.95, $24.95 and $39.95, for increasingly higher capacity. That's what it means to have resources, what the average man lacks, even after considering the scale difference.

Sanjeev Aggarwal, vice president of infrastructure and software at AMI Research, a market research firm that specializes in how small businesses use information technology, told Reuters that this would skyrocket the service's usage. "It is probably more expensive now to manage this bandwidth usage, data storage and the billing related to that, than it is to offer these services on an unlimited basis," he said. AMI estimated that out of the 6 million small businesses, about 75 percent have some sort of Internet presence. As an example, most of the store-fronts being hosted on Amazon and eBay are actually hosted by the Sunnyvale-based company.

Yahoo! is the largest provider of web hosting in the United States and has more than 1.5 million customers, Reuters said.