The hosting industry has been a foundation of the internet since the beginning, providing the infrastructure needed to make websites accessible to users around the world. However, the web hosting landscape is changing, with the growth of Software as a Service (SaaS) solutions challenging traditional hosting models. This shift raises a key question: will traditional hosting be replaced by SaaS in the near future?
This article is based on an interview with Vincentas Gus, CEO of IPXO.
The evolution of web hosting
To understand the potential move towards SaaS, it’s important to look at how web hosting has changed over the years. Initially, hosting was straightforward, with companies offering space on a server for websites. Over time, this developed into more complex models, such as shared hosting, Virtual Private Servers (VPS), and dedicated servers, each offering different levels of control and performance.
However, as users demanded more from their online presence, the limits of traditional hosting became clear. This created an opportunity for SaaS solutions, which offer a more user-friendly approach.
Vincentas Gus, during our conversation, pointed out this shift: “I think hosting as we know it will change. We should consider a SaaS approach—how we can create products that help business owners get online quickly.”
Why SaaS solutions are gaining popularity?
The appeal of SaaS solutions is in their simplicity and completeness. Unlike traditional hosting, which often requires users to manage various components separately, SaaS offers an all-in-one package. This can include everything from website building tools to e-commerce platforms and marketing integrations.
As Vincentas noted, “What we see now is that WordPress was the first breakthrough, followed by platforms like Wix and Shopify. They didn’t just build websites; they provided complete solutions tailored to specific needs.”
This approach is especially attractive to small and medium-sized businesses (SMBs) that may not have the technical skills or resources to manage complex hosting setups. With SaaS, they can focus on their business while the platform handles the technical aspects.
The future of traditional hosting
While SaaS solutions are on the rise, traditional hosting won’t disappear entirely. There will always be a part of the market that needs the flexibility and control that traditional hosting offers. For example, large enterprises with specific security or performance needs may continue to use dedicated servers or customized VPS solutions.
However, for the larger market, especially SMBs and individual entrepreneurs, SaaS is likely to become the preferred option. The trend is already evident: businesses are increasingly seeking solutions that allow them to get online quickly and easily.
Vincentas summed it up well: “The hosting market is moving towards a service-oriented approach, where the focus is on helping businesses establish a strong online presence with minimal effort. Traditional hosting will still have its place, but SaaS will likely dominate for those seeking simplicity.”
A mixed future
In conclusion, while traditional hosting won’t disappear, it might become less common as SaaS solutions grow in popularity. The future of web hosting will likely be a mix, with both traditional hosting and SaaS serving different needs.
However, the recent uproar over Webflow’s sudden price increases highlights a key issue with relying too much on SaaS: the lack of control. When using SaaS, businesses are essentially renting technology from a provider, which means they’re subject to the provider’s rules, price changes, and decisions. As with Webflow, unexpected price hikes can leave users with tough choices—accept the new terms or face the hassle of moving to another platform.
This situation shows the risks of depending on SaaS. For large projects or those with specific needs, traditional hosting offers more freedom. By managing their own hosting, businesses can control their setup, meet their unique requirements, and avoid surprise costs from third-party providers.
Self-hosting requires more technical know-how, but the long-term benefits—like having full control and predictable costs—can outweigh the challenges. As businesses look for the right balance between convenience and control, the discussion about hosting options remains important, especially as the SaaS model continues to evolve.
This debate makes it clear: while SaaS offers simplicity, traditional hosting still provides the freedom to fully own and manage your digital presence.
