Table 7.2 shows a summary of information about three hosting providers that might be fathered from an REP and other sources. A close look at the information demon-strates that choices between vendors are often nontrivial. Providers that are strong in one area may be weak in another, and often no clear choice emerges.
For example, in table 7.2 the fact that provider 1 seems unwilling to supply financial information is probably a red flag that signals further investigation. Even if provider 1’s funding source are gold-plated, customers need specific assurance that a service provider has a viable business model and will be a strong partner well into the future. Similarly, infrastructure might reasonably be worried about Provider 2’s lack of profitability. Provider 2 relates the losses to its expansion plan, but prospective customers might wonder if the company can transition as easily to profit-making as its managers suggest. In this scenario, Provider 3 looks like the solid choice because it is large and profitable and its fees are lower.
Unfortunately, there are also reasons to worry about provider 3. Most of the company’s revenues come from business other than hosting services. This situation may translate into a lack of focus on the hosting business. Furthermore, provider 3 seems to have some serious operational problems.