Scalable businesses grow fast, and their challenges are pretty unique, especially when considering their digital infrastructure. Liquid Web surveyed the latest and greatest business leaders about hosting practices of hypergrowth businesses to uncover how they adapt to scalability needs and ensure reliable performance. The result provides a number of interesting insights on how to keep the engine running hot in the competitive pace of today's digital economy.
Operational Challenges in Hosting Prevalent Among Expanding Enterprises
Hosting and server management are especially common pain points for many hypergrowth businesses with rapidly growing sales and revenue. In fact, according to research by Liquid Web, 61% of hypergrowth businesses faced at least one issue with hosting or servers in the last year. These issues usually created discontinuity that had adverse implications for user experiences, operational efficiencies, and revenue.
Due to these challenges, 40% of the study's respondents migrated to cloud hosting to keep up with growing rates and to maintain their sales and revenue. Cloud hosting, characterized by scalability and flexibility, lets any business manage increased traffic, ensure uptimes, and improve general performance without constantly upgrading hardware.
Increased Budgets Reflect Hosting Priorities
It's no surprise, then, that many companies are investing more than ever in hosting services to support their growth. Liquid Web reported a full two-thirds of hypergrowth organizations plan to increase their budgets for hosting services in the next year. On average, they anticipated increasing their hosting budgets by 23%.
This trend shows that reliable and high-performance hosting is not just a technological concern alone but a big corporate investment as well. As the budget increases, so does the business's ability to afford modern hosting solutions, implement redundancy, and scale up infrastructure to meet future needs.
Return on Investment of Upgrading Hosting Solutions
It's really about better returns on investments more than solving problems. In fact, 88% of the hypergrowth businesses that upgraded their hosting this year realized a positive ROI as a result.
Whether increasing uptimes, site load times, or handling surges above and beyond site traffic, these upgrades directly translate into better user experiences and higher conversion rates, setting these companies on a path for strong customer retention. For a hypergrowth business, it's the kind of advantage that will keep them ahead of the competition.
Strategies for Hosting Success in Hypergrowth
Liquid Web's study throws light on how successful hypergrowth businesses implement their hosting practices. Here are some actionable insights for companies facing similar challenges:
- Scalability first: Hypergrowth comes with spikes in unpredictable traffic and scaling demands on infrastructure. Cloud hosting solutions are preferred due to their ability to scale resources dynamically with the flux of traffic.
- Invest in managed hosting: With managed hosting services, organizations can outsource management-related tasks to experts and provide resources for their in-house teams to work on growth initiatives. More often than not, they also provide additional levels of support and performance optimization.
- Continuously monitor performance: Regular performance monitoring enables an organization to identify and resolve bottlenecks before they worsen. Tools such as real-time analytics and load testing can be helpful in monitoring website performance and strategizing for future bottlenecks.
- Budgeting for growth: As the survey shows, increasing hosting budgets is an investment. Spending on infrastructure upgrades can avoid expensive outages and keep business operations running smoothly during critical growth periods.
- Apply backup and redundancy measures: Greater growth also means greater stakes in case of downtime or loss. Using backup systems and redundancy strategies facilitates minimal disruption if such unforeseen situations happen.
The Consequences of Overlooking the Hosting Requirements
By contrast, companies that proactively deal with their hosting providers — whether it's through cloud solutions, managed services, or infrastructure upgrades — are setting themselves up for success in this continuously competitive digital space.
A Glimpse Into the Future
Final Thoughts
The hosting practices of hypergrowth enterprises build on a basic tenant: growth and infrastructure go hand-in-hand. That leaves the research by Liquid Web as an important, end-to-end guide for any organization that wishes to scale with assured, high performance.
From early addressing of hosting challenges to ensuring only ROI-driven upgrades, the strategies shared in this study will form a necessary foundation for any company to thrive in the digital era. As hypergrowth businesses have proven, the right hosting decisions can provide the foundation upon which future success will be built.
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