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Rapid Webhosting Consolidation
Thursday April 21st 2011, 12:30 pm
Category: Emerging Media,Marketing Trends

Written by:

Endurance International Group has been aggressively acquiring independent hosting companies since it changed its business model in 2001, post-2000 tech-bomb. Recently it scooped up the spunky Los Angeles based Dreamhost, formerly an employee-owned company, increasing EIG’s portfolio to over a hundred thousand customers.

Spry and VPSLink were acquired by EIG in May 2010, after which EIG merged the former Spry/VPSLink Seattle and New York data centers into EIG’s Boston facility. The transition was rocky for many Spry customers, particularly because the VPS (Virtual Private Server) product that Spry offered was attractive to many small and medium sized web-dev businesses who focus on managing many sites and clients under VPS hosting products.

In 2008, EIG was acquired by private equity group, Accel-KKR whose sole focus, according to Crunchbase, is investing in technology businesses with revenues in the $15 to $150 million arena. EIG’s preference is to work with the existing management teams of the businesses they acquire, though they did not keep on the Dreamhost team. Compare the photos from either corporate website to get the gist of the cultural differences between the Dreamhost and EIG.

Dreamhost, on the one hand, is made-up of casually-dressed, hairy males in their late 20s to mid-30s. Accell-KKR and EIG teams are also all-male, but in their mid-thirties to early forties, and definitely SUITed.

Sadly, no women on any of the tech teams, executive management, special advisors or board of directors, pre- or post-merger.

The EIG acquisitions list, according to Dreamhost, includes all of the following and more:
AccountSupport
ApolloHosting
BizLand
BlueDomino
BlueHost
DomainHost
Dot5Hosting
Easy CGI
eHost
EntryHost
FastDomain
FatCow
FreeYellow
Globat
HostCentric
HostMonster
HostYourSite
HyperMart
IMOutdoorsHosting
iPage
Ipower
IPowerWeb
Justhost
Netfirms
Networkshosting
PowWeb
PureHost
ReadyHosting
Spry
StartLogic
USANetHosting
VirtualAvenue
VPSLink
WebHost4Life
Webstrikesolutions
Xeran
YourWebHosting

Dreamhost blog entry: http://bit.ly/giFlN3



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{   Ann Warman's Blog  }
I'm founder of brandUNITY, a lover of the arts, and I'm fiendish about scouring the web, researching and testing clever, new ways to increase website traffic and engagement. Also see:


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