The dot-com bubble has burst, corporate spending is in a holding pattern and enterprises are deferring e-business infrastructure technology and services purchasing. As a result, revenue growth in the U.S.Web hosting market has definitely slowed.

The primary factor behind the Web hosting company slowdown is the state of the economy, IDC said. In 2000 there were many components helping to drive growth in Web hosting including a robust U.S. economy, a vigorous IT industry and the Internet. All of that changed in 2001 but nevertheless, enterprises are only just beginning to leverage the full potential of Web hosting based opportunities and the market will continue to grow.