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Domain Names and Web Hosting in 2009 and Beyond

Domain Names and Web Hosting in 2009 and Beyond. Adam Eisner Product Manager, Domains Tucows Inc. About Adam and Tucows. Adam: Product Manager, Domains With Tucows five years 10 years in technology journalism, marketing Tucows: One of the world’s largest domain registrars

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Domain Names and Web Hosting in 2009 and Beyond

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  1. Domain Names and Web Hosting in 2009 and Beyond Adam Eisner Product Manager, Domains Tucows Inc.

  2. About Adam and Tucows • Adam: • Product Manager, Domains • With Tucows five years • 10 years in technology journalism, marketing • Tucows: • One of the world’s largest domain registrars • Manage ~9 million domain names • Also provide wholesale email, SSL certificates • Operate Tucows.com, Butterscotch.com 2 Parallels – Optimized ComputingTM

  3. What We’ll Talk About in 18 Minutes or Less • The state of the domain name market • Opportunities in web hosting and domain names • Emerging trends in web hosting and domain names for 2009 and beyond 4 Parallels – Optimized ComputingTM

  4. 2008 Was a “Shakeout” Year for Some • Domain name ‘tasting’ issue was addressed at the policy level • Parking revenues started to slow • Oversee: parking/aftermarket valuation $1.2b in 2007, $0.9b in 2009 • VeriSign: 8% of com/net names are for parking • VeriSign: slow growth due to Google AdSense changes, ‘softness’ in online ad spending • Nominet: gTLD base grew less than 10% in 2008 (compared to 30% in 2006) 5 Parallels – Optimized ComputingTM

  5. It’s Not All Doom and Gloom • Most ‘softness’ applies to speculators, investors; not hosts • All sectors still buying domain names: • USA, international • Corporate, SMB • Consumers • Premium domain names are more valuable than ever (think real estate) • Strong growth in ccTLDs (now about 40% of the market) • Many ccTLD markets are ‘white hot’ 6 Parallels – Optimized ComputingTM

  6. Significant Growth in ccTLDs • Top 10 ccTLDs (totals are approximate): • .CN (12 million) • .DE (12 million) • .UK (7 million) • .NL (3 million) • .EU (3 million) • .AR (1.8 million) • .RU (1.6 million) • .IT (1 million) • .BR (1 million) • .US (1 million) • gTLD market share was 50% in 2005, 45% now! 7 Parallels – Optimized ComputingTM

  7. .CN: Hot or Not? • Surged to beyond 12 million names in 2008 • 88% growth year over year • Generated a lot of hype • Caution: some of this growth is artificial 8 Parallels – Optimized ComputingTM

  8. Domain Growth: Linked to GDP? Source: Nominet 9 Parallels – Optimized ComputingTM

  9. What Sells Well Right Now? • .ME: Relatively new, popular offering • .EU, .ES, .CH, .NL selling well in Europe • .EU just passed three million • .CA, .UK should be staples • Keep an eye on .TEL - landrush beginning now! • Average domains per registrant is more than one - so you should be selling multiple names. • Sold them the .COM? Offer them the .INFO too. 10 Parallels – Optimized ComputingTM

  10. 2009 Predictions

  11. Emerging Trend: New Domain Extensions • Approved @ Paris ICANN meeting in June • Allows anyone with $185k to apply • Up to 1000 applications to be submitted • Among those being considered: .sport, .nyc, .paris, .gal, .web, .africa, .quebec, .london and many more • .ebay? .nike? .shoes? .webhost? Who knows. • Some will be closed/not require registrars Source: Nominet 12 Parallels – Optimized ComputingTM

  12. The Impact to You • New markets = new opportunities • Education will be key • Some closed off to you • May not require registrars • Still early, much to be determined • Lots of extensions = brand protection nightmare (or opportunity!) Source: Nominet 13 Parallels – Optimized ComputingTM

  13. Is There Room? Source: Nominet 14 Parallels – Optimized ComputingTM

  14. Timelines Source: Nominet 15 Parallels – Optimized ComputingTM

  15. Emerging Trend: I Want to Be A Registrar • Key benefits: own name on accreditation, access to ICANN constituencies and policy • Weigh the option carefully! • A few thousand names isn’t necessarily a good threshold • There are many ‘hidden’ factors to consider • Policy (compliance, ICANN, UDRP, legal) • Registry updates (on both policy and technical levels) • What to do with existing names Source: Nominet 16 Parallels – Optimized ComputingTM

  16. Emerging Trend: The SMB Aftermarket • Names which cost between $500 and $3000 • SMBs have a budget for the ‘perfect’ name • Most names resolve to SMB site in six months • Recent sales by Tucows resellers: • Grouplaw.com • Emailmagic.com • Bluelabs.com • Webhostbiz.net • Techwriters.net • Firstinterstate.net • Reversemortgage.net • Netkeepers.com Source: Nominet 17 Parallels – Optimized ComputingTM

  17. Emerging Trend: The Personal Web • Using domains as a personal identity is becoming very popular: • Tucows: Acquires NetIdentity.com, resellers (including) web.com sign on to offer Personal Names • .ME launches in July: biggest ccTLD launch ever • Apple snaps up ME.COM, .ME names • VeriSign: Purchases .NAME registry in October (popular among Tucows resellers) 18 Parallels – Optimized ComputingTM

  18. Emerging Trend: Functional Hosting 19 Parallels – Optimized ComputingTM

  19. Emerging Trend: Functional Hosting All-purpose Web Hosts (Budget/Ecommerce/Shared) Web 2.0 20 Parallels – Optimized ComputingTM

  20. Other Emerging Trends • Mobile computing and related services • .MOBI, .TEL functions of this • Wireless-formatted websites becoming increasingly important, relevant • Extended Validation digital certificates • Going mainstream faster than expected 21 Parallels – Optimized ComputingTM

  21. Questions?

  22. Thank You! Adam Eisner Product Manager, Domains Tucows Inc. aeisner@tucows.com

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