IBM Targets Web Hosting as Key Growth Area

I guess this is one reason why, Yahoo, 1 and 1 and others are in the domain name game. As a setp up to get more “online services” revenue such as web hosting.
Reutuers reports International Business Machines Corp. (NYSE:IBM – news) widened its lead last year in the U.S. market for Internet hosting services as it won a greater share of the medium-sized business market, according to data recently published by market research firm IDC.
The Armonk, New York-based company has identified Web hosting as a key to boosting overall revenue growth. As the hardware business that had been its mainstay has matured over the past several years, IBM has focused on services.
According to the most recent report from IDC, published in late July, IBM’s Web hosting market share in the United States rose to 24.8 percent in 2003 from 23.5 percent in 2002 and just 15 percent in 2000.