HI,

The following are some of the probable long term effects of oversold web hosting:

# Most of the small web hosting companies may undertake M&A (mergers and acquisitions) activities so as to build up financially sustainable businesses as well as to survive the cutthroat competition.
# There may be as few as 10 - 30 large companies functioning in the market. These companies as a whole will be holding over 80% of the total market share.
# The costs of basic web hosting services may rise up to a few dollars and the month-by-month payment plans may become popular once again.
# Some of the web hosting companies may take on new services, such as providing web presence services and will charge a higher monthly fee.

Good points John,The reseller gets benefits both for the short term, as well as for the long term.

Moreover, overselling has distorted the customer’s knowledge of the web hosting market. Most of the customers now emphasize on high bandwidth and disk space instead of evaluating the web hosting plans and techniques rationally.