Key Takeaways
- Nearly half of hyper-growth leaders say managed hosting is essential to business stability, according to a Liquid Web white paper.
- About one-third of those surveyed have already made the switch to cut costs, boost security, and simplify operations.
- Hosts without packaged, ready-to-scale hosting services may risk losing the next wave of high-growth clients.
Nearly 45% of the fastest-growing companies say managed hosting is essential for stability, and 27% have already switched to cut costs, improve security, and relegate infrastructure responsibility.
More often, we’re witnessing young companies offload their infrastructure to managed providers. And that has the potential to be a lucrative opportunity for hosting providers that can meet the demanding performance, uptime, and security requirements of rapidly scaling companies — while emphasizing low-effort hosting solutions.
Is the DIY Approach Out?
Backend infrastructure is now a critical step in how brands communicate, build trust, and streamline operations.
According to the Liquid Web white paper, 27% of hyper-growth businesses (HGBs) switched to managed hosting in the past year. Among the fastest-growing (more than 70% YoY), that number jumps to 44%.
Many fast-growing companies are switching from DIY infrastructure to managed hosting because they’re hitting the same pain points over and over, including:
- Cost increases: 48%
- Security risks: 44%
- Data privacy and compliance challenges: 30%
- Performance issues under heavy traffic: 29%
- Complexity of managing infrastructure: 22%
The report also found that performance monitoring and AI-driven infrastructure management are the top two features businesses look for in a hosting provider.
So, not only is self-managed infrastructure costly and hard to secure or scale, but the C-suite doesn’t want to make the time to assess and repair.
What It Means for Hosts
With the rise of low- and no-code web building and more intuitive hosting experiences, managed hosting will continue to rise.
The managed hosting market will see a CAGR of 20.45% between 2025 and 2030, jumping to $355.22 billion, according to Mordor Intelligence. That’s more than 2.5 times what it’s valued at today.
Industry folk already know that young entrepreneurs, startups, and small business owners (SBOs) alike prefer web hosting providers who manage the technical details for them.
So, the fact that fast-growing firms are requesting the same things as those just starting out implies that this is an industrywide change.
Unfortunately, it’s not so easy for the hosts. With so much data and so many new demands, some providers are struggling to keep their heads above water.
It explains the rise in partnerships and acquisitions, often where smaller hosts are being absorbed by bigger players or relying heavily on vendor partnerships.
That’s not to say an indie host should sell out because it’s easier; it’s just important to remember that while building in-house sounds impressive, it’s rarely sustainable.
And without the right capital or expertise, both provider and client lose.
A more realistic approach is to partner with the right specialists — the kind that can help them manage their infrastructure and services — to deliver a completely reliable and scalable experience to their own clients.
