Hyper-growth hosting study

Learn how hyper-growth businesses leverage hosting to scale fast and boost ROI in the Liquid Web hyper-growth hosting research study.

Hyper-growth businesses – companies experiencing exceptionally rapid and sustained expansion, often with a compound annual growth rate (CAGR) of 40% or higher – face unique challenges in scaling their hosting infrastructure to meet soaring demand. For these companies, maintaining this level of growth requires agile, high-performance hosting solutions to handle increasing traffic, ensure security, and optimize speed.

Liquid Web surveyed hyper-growth businesses across industries, including IT, retail, hospitality, real estate, healthcare, and education, to understand how they are addressing their hosting needs. The findings offer insights into their budgets and emerging trends in hosting solutions, and highlight the vital role of hosting in supporting sustained, aggressive growth.

Key points

  • 61% of hyper-growth businesses experienced hosting and server problems within the last year, and 40% switched to cloud hosting to maintain their sales and revenue.
  • 2 in 3 hyper-growth businesses plan to increase their hosting budgets in the next year, by an average of 23%.
  • 88% of hyper-growth businesses that upgraded their hosting this year report a good ROI.

Handling website traffic surges

To sustain their growth trajectory, hyper-growth businesses must rely on resilient, high-performance hosting infrastructure capable of handling traffic spikes. This often involves shifting to cloud, VPS, or bare metal hosting to optimize speed and availability based on specific growth needs.

Hosting statistics for hyper-growth businesses: 61% had hosting and server issues in the last year. The most common problems in order: Downtime, slow performance, high server load, load balancing problems, increased costs, data loss, backup problems, poor hosting support, security breaches, limited scalability. 6 in 10 upgraded their hosting to keep pace with growth, and another 40% switched to cloud hosting. 27% switched to managed hosting.

Rapid expansion has strained the infrastructure of many companies over the last 12 months. More than half of hyper-growth businesses – 61% – encountered hosting and server issues in the past year.

48%

Experienced downtime or server crashes

34%

Experienced slow performance or latency

30%

Experienced high server load or latency issues

Challenges like these have driven 40% of hyper-growth companies to adopt cloud hosting, while 27% switched to managed hosting to safeguard sales and revenue.

Hyper-growth companies were most likely to abandon shared hosting as their initial solution, with 34% starting on shared hosting but only 22% continuing to use it.

Choosing the right hosting solution for scalable growth

While cloud hosting offers scalability and flexibility, VPS (virtual private server) hosting provides dedicated resources at a lower cost. This option appeals to businesses that need more control without the high investment of bare metal servers. For companies requiring maximum performance and full hardware control, bare metal hosting can be an ideal solution.

These choices allow hyper-growth businesses to tailor their hosting to match both current demand and anticipated expansion, ensuring seamless uptime and operational continuity. When evaluating hosting solutions, hyper-growth businesses said they prioritize the following features to prevent costly downtime and maintain customer trust.

Top 10 features business owners look for in hosting solutions

  1. Reliability
  2. Security
  3. Speed
  4. Customer service
  5. Uptime
  6. Cost-efficiency
  7. Performance monitoring and analytics
  8. Flexibility
  9. Data privacy and compliance
  10. Scalability

Hosting budgets for hyper-growth

Below, we explore how hyper-growth businesses are investing in hosting and other key areas to sustain rapid growth.

Budgeting for hypergrowth: statistics on where companies are investing significantly in the coming year: 79% marketing, 70% product dev, 65% hosting, 40% sales, 30% talent acquisition, 17% cybersecurity. Hypergrowth companies on average spend 24% of their annual budget on hosting. 88% who upgraded their hosting in the past year report a positive ROI.

There’s a clear trend among hyper-growth businesses toward increased investment in hosting infrastructure, with 2 in 3 planning to expand their budgets by an average of 23% over the next year.

Improved hosting leads to positive ROI

The positive impact of recent upgrades is also evident, as 88% of businesses that enhanced their hosting solutions this year reported a good return on investment (ROI). This demonstrates the tangible benefits of allocating resources to high-performance, resilient hosting environments.

To evaluate the ROI of these investments, hyper-growth businesses track a range of performance metrics that connect hosting capabilities to business outcomes.

Top 10 metrics business owners use to evaluate hosting ROI

  1. Server response time
  2. Conversion rate
  3. Revenue generated from website
  4. Monthly or annual traffic growth
  5. Page load time
  6. Cost per visit or user
  7. Website uptime percentage
  8. Security incidents or breaches prevented
  9. Hosting cost relative to business revenue
  10. SEO performance

Future hosting challenges and improvement goals

We’ll next examine the primary hosting challenges anticipated by these companies and the optimizations they’re most interested in implementing.

Infographic depicting statistics: 78% of companies using the cloud trust it to handle all future growth, 3 in 10 plan to change their hosting in the next year. Most common concerns about hosting in order: Price increases, security risks, compliance, performance, infrastructure complexity, downtime, scalability, platform integrations, limited customization, sustainability. Hypergrowth companies most desire the following features in a host: enhanced performance analytics, AI-driven infrastructure, a more modern cloud, edge computing, green hosting, multi or hybrid cloud, SSD upgrades, load balancing / autoscaling

Cloud hosting is a trusted solution for scalability, with 78% of business owners confident in its ability to support their future growth.

As for hyper-growth business owners, 30% of these companies said they plan to change their hosting solution in the coming year, likely in response to evolving needs or emerging technologies.

Looking ahead, hyper-growth businesses expressed concerns about future hosting challenges, including:

  • Cost increases: 48%
  • Security risks: 44%
  • Data privacy and compliance challenges: 30%
  • Performance issues under heavy load: 29%
  • Complexity of managing infrastructure: 22%

As a result, hyper-growth businesses are looking for specific optimizations when choosing an infrastructure provider.

Top 5 hosting optimizations business owners want

  1. Enhanced performance monitoring and analytics
  2. AI-driving infrastructure management and optimization
  3. Migration to a more modern cloud platform
  4. Edge computing
  5. Energy-efficient or green hosting solutions

Business owners are eyeing a handful of top hosting solutions. Their most desired optimization is enhanced performance monitoring and analytics. Real-time insights can help them catch issues before they impact users, boosting uptime and keeping everything running smoothly – just what a growing business needs. 

AI-driven infrastructure management has also become a priority as business owners seek to automate routine tasks with AI tools and optimize resources to handle demand spikes. And finally, there’s a desire to move toward modern cloud platforms, which could provide the scalability and resilience these businesses need.

For the businesses leveraging AI to modernize their own systems, GPU hosting has become a top-desired solution.

Powering future growth with reliable hosting

As hyper-growth businesses navigate rapid expansion, resilient hosting solutions are more essential than ever. With almost 9 in 10 seeing positive returns from recent upgrades, these companies recognize the value of investing in robust, scalable infrastructure. By continuing to enhance their hosting strategies, they’re not just meeting today’s demands – they’re building a foundation for sustainable, long-term growth.

“Think of hosting as a strategic investment, not just an operational cost. For hyper-growth businesses, prioritizing reliable, scalable hosting supports today’s demands but also secures tomorrow’s success.”

Reid Peifer
Chief Creative Officer for Liquid Web

Reid Peifer

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We surveyed 160 business leaders working at businesses experiencing hyper-growth to understand how they’ve evolved their website or database hosting strategies to meet increasing demands. Hyper-growth businesses were defined as those businesses that grew by at least 30% in the past year. Data was collected in October 2024.

Liquid Web specializes in high-performance hosting solutions tailored for businesses experiencing rapid growth. Their managed and self-managed hosting services are designed to support scalability, speed, and security in dynamic environments. Products include VPS hosting, WordPress hosting, bare metal servers, and cloud server solutions.

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Scaling for success: Ensuring optimal performance in hyper-growth businesses

Unlock the insights you need to scale at lightning speed and support your business’s ongoing growth with Liquid Web’s comprehensive study.

61% of hyper-growth companies face downtime, slow performance, and server overload.

40% transitioned to cloud hosting, while 27% opted for managed hosting solutions.

66% plan to boost their hosting budgets by an average of 23% next year.

88% of those who upgraded their hosting solutions reported a positive ROI.

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