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Oversold web hosting is one of hottest topics for debates and discussing over the past couple of years. In fact, it is a common practice within the web hosting industry. In this article, we will discuss about the long tern effects of overselling on the web hosting industry.

Moreover, most of the oversold web hosting companies provide no commitment in terms of intellectual property, finances and human assets. As a result, any web hosting company can provide such services. In addition, you also need to realize that overselling does not provide a true competitive edge. It is simply a price war between two competitive companies that force the other to oversell their services, so that they can remain in the competition.

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In short, stay away from companies that sell "unlimited space and bandwidth for a limited price"..

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The following are some of the probable long term effects of oversold web hosting:

# Most of the small web hosting companies may undertake M&A (mergers and acquisitions) activities so as to build up financially sustainable businesses as well as to survive the cutthroat competition.
# Some of the web hosting companies may take on new services, such as providing web presence services and will charge a higher monthly fee.
# There may be as few as 10 - 30 large companies functioning in the market. These companies as a whole will be holding over 80% of the total market share.
# The costs of basic web hosting services may rise up to a few dollars and the month-by-month payment plans may become popular once again.

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Moreover, overselling has distorted the customer’s knowledge of the web hosting market. Most of the customers now emphasize on high bandwidth and disk space instead of evaluating the web hosting plans and techniques rationally.

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