The economy and looming recession have been the talk of the town for the past few months in the media. With the fears of a more thorough, long-lasting recession building up after the onset of the housing bubble, millions of foreclosures, foreign wars (Yes, I'm a libdrool puppet) and the collapse of a number of large companies -- what's in it for the web hosting industry and consumers?

Well, recent articles in the Canoe (CNN and others have had similar reports) suggest that the technology sector has largely in part been immune to the cutbacks seen in many other industries. Immune, entirely? Of course not, as even us IT folk still have to consume the more expensive goods, gas and depend on the increasingly volatile market as a whole but IT seems to have cemented itself in as a necessity rather than a luxury. As the population of the internet continues to skyrocket, more companies will take their sales online to reduce the effects of the local economy on their companies & products.

For example, an online retailer may not see the full-fledged effects of the recession if their products are being sold to other countries where the mortgage fiascos have not had as large of an impact. Millions of other examples can be cooked up, but some still see the recession as a good thing. Myself included, admittedly. The recession is offering the market some correction -- in essence, we're being reprimanded for expanding too quickly beyond our means and market itself. Overspending and living off credit will have a fast, deafening impact on every industry no matter the offering. (Except toilet paper, toilet paper is as safe an industry as potatoes.)

So, what's all this mean for web hosting?

The impact of the economy as a whole will leave aspects of the industry in ruin. While there won't be any widespred distress just yet, a number of companies with lower profit margins will be hit the hardest as the economy fluctuates. The rising gas, food and necessity prices will drive up their costs to the point where their operations will no longer be profitable or even feasible.

The results will be clear: In 2008 we'll see more acquisitions, mergers and companies disappearing overnight. It's safe to say that if you haven't kept backups up until this point you should start ensuring you have frequent backups just in case the company you're utilizing chooses to go next. As we've seen in the past, mergers and acquisitions may not necessarily end up all that pretty. Ipowerweb & Endurance International are a prime example.

Only time will tell the full effects, God willing, Hostjury will be here too :)