2024 Hosting Insights: Unveiling the Top Four Trends

As the foundation of the online economy, web hosting affects millions of users' daily lives, from casual bloggers to large e-commerce enterprises. The industry's crucial role is highlighted by its progression from basic shared hosting to the current domination of cloud and edge computing technologies.

Staying up-to-date on the latest web hosting trends isn't just beneficial - it's crucial for companies and individuals who want to get the most out of their websites in terms of resources, security, and performance. Understanding modern hosting capabilities allows people to fully leverage and optimize their online presence.

Liquid Web recently released their 2024 State of the Hosting Industry report, where they surveyed 500 business decision makers at mid- to enterprise-level businesses. As we analyze five of the top trends they uncovered this year, we'll look at the challenges and benefits that these trends now house as well as the future potential they hold for the web hosting industry.

Trend #1: Cloud Hosting

Nowadays, cloud hosting is not just an option - it's something that businesses of all sizes widely use. The cloud industry is still evolving rapidly, with new and innovative developments happening all the time. Two examples of these trends are the growing acceptance of serverless architecture (where companies don't have to manage their own servers) and the increasing popularity of using multiple cloud providers (known as a multi-cloud approach).

Image: DIW-Aigen

The survey looked at how common cloud hosting is across different industries. The results were very clear - a huge 71% of businesses now host at least half of their IT systems and data in the cloud. This high number shows just how transformative and widely adopted cloud hosting has become for organizations' digital operations and infrastructure.


Despite its prevalence, adopting cloud hosting does come with its set of challenges. The report identified key pain points faced by companies embracing the cloud:

  • Security Concerns: 46% of respondents encountered difficulties in ensuring the security of cloud environments due to insufficient visibility.
  • Cost Management: Concerns about controlling and maximizing cloud service costs were mentioned by 49% of respondents. Although flexible, the pay-as-you-go concept necessitates close supervision to avoid going over budget.
  • Integration Complexities: When transferring current apps to the cloud, 54% of respondents encountered integration complications. For many organizations, integrating seamlessly with old systems and procedures continues to be a persistent difficulty.

Opportunities and Benefits

Even with the difficulties, there are still a lot of advantages and prospects with cloud hosting. The respondents emphasized the following advantages:

  • Scalability and Flexibility: 76% agreed that cloud hosting provides both flexibility and scalability. Unmatched agility is provided by the capacity to scale resources up or down in response to demand.
  • Innovation Acceleration: According to 63% of respondents, cloud hosting encourages innovation. In a cloud setting, access to cutting-edge technology like artificial intelligence and machine learning is more smooth.
  • App Resiliency: 55% discovered that cloud hosting enhances the resiliency of hosted apps. This resiliency is achieved through features like redundancy, automatic scaling, load balancing, and robust monitoring that prevent downtime.

It's clear as we work through the complexities of cloud hosting that, despite some ongoing difficulties, the advantages greatly exceed them.

Trend #2: Edge Computing Integration

Edge computing processes data differently than traditional cloud approaches. Instead of sending all data to a central cloud server, it moves computation closer to the data source, eliminating the need to send everything over the network.

It provides major benefits like reduced latency, faster real-time processing, and less network traffic load. Essentially, edge computing brings cloud processing power closer to where it's needed most, allowing more efficient data processing right at the "edge" near sources.

Though 89% of survey participants reported using edge computing as part of their infrastructure, they still had concerns around some of the challenges.


  • Operational Complexity: When it came to the deployment and management of edge computing infrastructure, 53% of respondents voiced worries. Because technicians have to monitor and manage edge nodes from one location, careful orchestration is required.
  • Skillset Shortages: 55% reported that the talent gap to architect, develop, and operate edge solutions was a big challenge in integrating edge technologies.
  • Ecosystem Immaturity: 40% of respondents highlighted that system standards are lacking and that their partners’ solutions were still evolving.

Opportunities and Benefits

  • Performance Improvements: 80% of respondents saw improvements such as quick content delivery, lower latency, and a better end-user experience.
  • Cost Savings: 57% said that they are experiencing cheaper cloud processing and data transport expenses.
  • Increased Innovation: 53% reported that innovation is happening more quickly now because edge computing is making it possible to complete tasks that cloud technology by itself is just not able to do.

As edge computing becomes more widely understood, it becomes clear that implementing it is not only a trend but also an essential economic decision for companies hoping to prosper in the quickly changing digital era.

Trend #3: Serverless Architecture

The term "serverless architecture" is a bit misleading. It doesn't actually mean there are no servers involved. Instead, it refers to abstracting away server management responsibilities from developers. With serverless, the cloud provider handles all the underlying infrastructure, scaling, and maintenance tasks. Developers can then focus solely on writing code.

This serverless paradigm shift enables a more agile development process. It improves scalability since the cloud can automatically scale resources up or down as needed. And it streamlines deployment by reducing overhead.

According to 65% of survey respondents, a primary factor driving serverless adoption is cost savings. With serverless computing, companies only pay for the resources used when their code is actually running, optimizing spending.


  • Cold Start Latency: 57% expressed concerns about performance, such as the latency experienced during "cold starts" when serverless functions are initiated. Real-time applications may be impacted by this initial delay.
  • Vendor Lock-in: 49% of those who had not adopted serverless architecture identified vendor lock-in, security, and surprise costs as potential drawbacks. Following the serverless platform of a particular cloud provider may reduce flexibility and make migration more difficult.
  • Obscurity of Architecture: 54% of decision-makers had issues with serverless architecture’s lack of visibility into the underlying infrastructure due to its abstracted nature. Since the infrastructure is hidden, complex distributed logging is required to trace issues.

Opportunities and Benefits

  • Cost Efficiency: 65% highlighted cost efficiency benefits, attributed to consumption-based pricing and automated scaling options.
  • Easier Rollout Process: 63% experienced improvements in the rollout process with faster releases and feature velocity.
  • Higher Availability: 60% noted the high availability and resiliency of serverless architecture due to built-in redundancy, auto-scaling, and failover mechanisms.

As we learn more about serverless architecture, it's clear this paradigm shift is about more than just technology. Serverless represents a fundamental change in how companies approach digital infrastructure and development. It functions as a strategic tool for operating profitably and efficiently online.

By offloading server tasks to the cloud, serverless allows streamlining operations, reducing overhead, and increasing agility. Companies can focus on core products and services. Serverless reshapes the landscape, enabling businesses to be nimbler, cost-effective, and better positioned for digital success. It's an approach that helps organizations thrive, not merely a technical implementation.

Trend #4: Containerization

Containerization is a cutting-edge software development and deployment technique that aims to bundle and isolate dependencies among programs into lightweight, isolated units known as containers. Unlike traditional virtualization techniques, which require a different operating system for every application, containers share the host system's kernel, making them extremely portable and efficient. These containers comprise code, runtime, system libraries, and settings all packed together to enable programs to execute reliably across a range of contexts, from development to production.

Regardless of the supporting infrastructure, containerization offers a standardized and effective means to bundle, distribute, and operate software programs. Through the abstraction of operating system requirements and the packaging of programs with necessary components, containerization improves scalability, flexibility, and portability while streamlining the deployment process.

Containers help operations teams by simplifying administration and resource use, while developers can design, test, and deploy apps more quickly and reliably. All things considered, containerization is a paradigm change in software development that enables enterprises to adopt cutting-edge DevOps procedures, spur creativity, and quickly adjust to changing business requirements.


  • Talent Shortages: 62% face a scarcity of expertise in containerized app development and operations.
  • Regulatory Compliance: 38% of those not currently using containerization expressed uncertainty when it comes to meeting regulatory requirements.
  • Integration Concerns: Another 36% worried about integrating containers with proprietary middleware or databases.

Opportunities and Benefits

  • Faster Rollout: 64% of respondents see containerization as an opportunity to roll out application changes quicker.
  • Improved Utilization: 58% recognize the benefits of containerization in terms of enhanced resource usage, streamlined orchestration, and more targeted development efforts.
  • Creative Solutions: 352% acknowledge that container restart policies contribute to bolstering application resilience and availability by enhancing system robustness.

Containerization is a key trend that is changing the software development and deployment environment, as the field is always changing. This method transforms the way programs are packaged, deployed, and run in a variety of settings by encapsulating dependencies into lightweight and portable containers. Although there are obstacles to overcome, such a lack of skilled workers and undefined regulations, containerization presents a wealth of advantages and prospects for enterprises who adopt it.

As emphasized by the survey respondents, containerization has numerous benefits. Containers enable development and operations teams to operate more productively and efficiently by enabling quicker deployment of application updates, improving resource use, and boosting system robustness. Moreover, containerization encourages innovation and creativity by offering a uniform platform for software development and implementation.

Essentially, containerization is a fundamental change in the way businesses approach software development and operations, not merely a technological accomplishment. Organizations may achieve unprecedented levels of agility, scalability, and resilience by utilizing containerization, which will help them remain competitive in the ever-evolving business environment of today. It's becoming increasingly evident that containerization has an influence that goes well beyond technology, influencing software innovation and business success in the years to come.

Final Thoughts

Wrapping up the insights presented by Liquid Web's comprehensive 2024 State of the Hosting Industry Report, several overarching themes emerge, providing a deeper understanding of the evolving hosting landscape:

  1. Adaptability is Key: Successful hosts all possess the capacity to adjust to emerging trends. Whether it's embracing edge computing, managing multi-cloud configurations, or embracing serverless architectures, flexibility enables businesses to remain resilient in the face of rapid technological advancement.
  2. Balancing Act of Challenges and Opportunities: Every trend brings with it a new set of difficulties, ranging from complicated integration to worries about data protection. But these difficulties frequently mix with a wealth of opportunity. Growth and innovation are unlocked through proactive problem-solving and strategic navigation.
  3. User-Centric Approach: Decision-makers and hosting companies are realizing more and more how important the end-user experience is. A user-centric approach anticipates future demands and not simply meets present needs, such as low-code integrations and data privacy compliance.
  4. Collaboration and Integration: Cooperative ecosystems are the foundation of hosting in the future. The significance of smooth integrations is highlighted by trends like serverless architectures, multi-cloud methods, and hybrid hosting. The foundation of a strong hosting infrastructure is interoperability and the dismantling of silos.
  5. Evolving Role of Data Centers: Conventional data centers go through a metamorphosis and become virtualized entities. Achieving equilibrium between historical systems and modern requirements is essential, since the hosting environment is shifting to prioritize efficiency, sustainability, and scalability.

The web hosting sector is one that is always evolving, full with chances, problems, and innovative ideas. Keeping up with these developments makes you more than just an observer; it empowers you to actively shape the digital future. You can achieve greater success by embracing these trends, overcoming obstacles, and adjusting to the changing web hosting landscape.

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