I recently read an article about Google and hostgator teaming up and giving free hosting to small business in Indiana. They did this to encourage underdeveloped companies to consider other forms of marketing such as a website or a blog. With the internet being one of the main sources of finding new businesses it is critical for business to embrace the new technologies that are available to them. If they do not then one of their competitors will and they will fall behind.
The free web hosting is good for a year and I also believe it is an opportunity for both Google and Hostgator to tap into new customers. Like people who never had HD TV saying they do not need it. Give it to them for a little and then take it away. They will pay to stay. Lost leader, charity or a little of both? I think its is a great program to help some new people understand the power of being online.