Web Hosting Fees Still Going Up

We use several different web hosting companies for our clients’ sites.  One thing they ALL have in common is that web hosting fees have gone up noticeably in the past few years.  Last year alone, our primary hosting preference went up 15%; another premium provider we use went up about 35%.  Part of this is catchup for inflation that has occurred the past few years.  Part of it also is a recognition that the growth in the number of unique web sites – and related to that, unique server subscriptions – has slowed MORE than noticeably.

Another development has been the creation of newer web hosting subscription levels for some providers.  Eventually what this can do is make older subscription levels somewhat obsolete, requiring an “upgrade” to get what you need – or require add-on services at the subscription level with add-on costs.

There’s really not much in the way of new investment capital to be spent on existing businesses with an older Internet industry such as web hosting (unless it involves acquisition) and we see the results.  Higher rates.
It is still a competitive market, but the last five years have seen acquisitions that are slowly reducing the number of players.  That will probably continue.  Competition is what keeps these prices still relatively stable, even with increases.
Since everything on the web requires web hosting, you’ll see this ripple into online subscriptions and software licenses and the like, as they require quality hosting as well.  
Perhaps 2024 will be a bit slower in increases, but the days of year-after-year same price services in the web hosting industry seem to be over.