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Web Hosting Mergers and Acquisitions - March 2008

Tue, 29 Apr 2008 11:40:00 -0400

I was going through my files --- then again and again ---- March was a slow month…but April will be better – at least my firm did three.

Lynchburg VA – Sitestar (OTC: SYTE) bought the assets of Comcation, an Internet service provider whose services also include web hosting. As a side note Sitestar’s CEO, Frank Erhartic has agreed to be on an M&A panel this blogger is moderating at ISPCON.

Australia - MYOB acquired Ilisys Pty Ltd one of Australia's larger web hosting providers. MYOB provides accounting software and payroll software to more than 700,000 businesses worldwide.

Glendale, CA - Pro Net Hosting acquired Homepage Universe which doubled the firm’s size to over 100,000 shared and dedicated hosting domains.

Denver, Colorado - ViaWest, acquired Dallas based Dataside. With the Dataside acquisition, ViaWest's annualized revenue will exceed $100 million by the fourth quarter of 2008.

London - Freedom4 Communications PLC, signed an agreement to sell its Hosting and Network Services Division to Host Europe WVS Ltd for 120.0 mln stg. ($235m)

Minneapolis - VISI acquired Infinity AccessNET, a business-focused Internet Service Provider.

Obviously not all inclusive - but from the NCC files.

More about Tom:

New Commerce Communications

E-Mail Tom Direct

But, what is going to determine web hosting that is truly affordable? It cannot be only cost.

It was very upsetting for us to find out that we were considered existing

customers of theirs, while this is incorrect. We might have used their

servers, but without our knowledge and indirectly, as it was purchased

from another hosting company and not from them.

Above is the hostican uptime recorded for january 2008. This hostican uptime figure is recorded over the internet, and from multiple remote location. Any of the internet or connection link is down between the monitoring servers to hostican server, its consider as server downtime. 99.762% is a good server/service uptime for the whole month.

Customization vs Standardization, or What Amazon and Rackshack Have in Common

Tue, 27 Feb 2007 23:27:00 -0400

In early 2001, just a few months before Exodus filed for bankruptcy, Robert Marsh launched Rackshack. Unlike his struggling competitors, who typically built servers to spec, Robert sold $99 Cobalt RaQs. Only one configuration was available, and orders were provisioned instantly and automatically. And instead of demanding multi-year commitments, Rackshack offered month to month service. By the time I joined the company in early 2003, Rackshack (which later changed its name to EV1Servers) had become the world's largest dedicated server provider.

A year or so later, Robert unveiled EV1's private racks program during a customer gathering; two attendees signed up on the spot. Soon other orders starting pouring in, along with complicated network diagrams and super detailed server specs from customers who wanted their systems built just so. We did our best to accommodate any and all requests, which were a huge challenge to keep track of. Only much later did I learn about ITIL from Rich Bader over at EasyStreet. By that time, Amazon had already launched S3 and would soon introduce EC2.

Unlike EV1's Custom Order team, who gladly built whatever customers asked, EC2 sells only $0.10 virtual server instances. There's just one configuration available, and orders are provisioned instantly and automatically. Instead of demanding month-long commitments, Amazon offers pay-as-you-go service in 1 hour units.

According to Vinne Marchanadi from Deal Architect, pay-as-you-go is what large customers nowadays are looking for. (A former Gartner analyst, Vinnie now advises enterprise IT buyers on vendor selection.) He offers the analogy of plugging into an efficient power source versus buying fancy generators. On behalf of his clients, he says:

"Message to vendors - so long as you meet our security, privacy and compliance standards, we want as vanilla, standardized a service as possible. Sell us capacity by unit of consumption. We want to leverage all your economies - in financing, procurement, operations, everything. In return, we want to fit as much as possible in to your standards."

Another couple of years from now, will standardization again give way to customization? I think the answer is yes. And no. Amazon recently started offering Machine Image sharing. And VMWare's virtual appliance marketplace features about 400 listings. And SalesForce.com offers over 500 partner apps on AppExchange. And earlier this month Netvibes unveiled its universal widget API... It seems service delivery platforms will become more - not less - standardized, while each user will have increasing freedom to mix and match a wide range of interoperable applications into highly customized solutions. Doesn't that sound like the best of both worlds?

Lunarpages Spring Special - Save $48 Instantly!

Thu, 17 Apr 2008 01:51:47 +0000
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After the coupon, your rate will be $4.95 a month instead of $6.95.
Don’t want to ...]

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VistaPages is a privately owned hosting company. Created in 2004, they are based in Toronto, Ontario, Canada.

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