May 12, 2006 : The webhost industry: week review
📅 - Featuring not one, but two of the largest Web hosting acquisitions in recent memory, this week's Web hosting news had a significance that required very little digging to uncover.
On Saturday, it was reported that investment firm GI Partners had acquired controlling interests in Everyone's Internet and The Planet, two of the largest Web hosting providers in the world. Both companies are based in Texas, and both are especially strong in the dedicated server market. GI Partners reportedly has more than $1.4 billion in capital under management, and had previously made significant investments in data center real estate firm Digital Realty Trust and communications provider Savvis Communications.
Later on the weekend, it was reported that the companies had merged, creating a combined entity that would support more than 20,000 clients and 50,000 dedicated servers. The company will be the largest dedicated hosting provider in the market, with the scale and financial strength to improve service levels and product innovation. However, both EV1Servers and The Planet will continue to operate as independent brands.
On Tuesday, the WHIR spoke to executives from both EV1 Servers and the Planet, who discussed the beginnings of their work together. The companies say they are currently examining the practices at both organizations and planning to optimize operations by adopting the most efficient technologies and business practices across the entire organization. While the deal will certainly mean substantial changes to the resources available to The Planet and EV1Servers, representatives for the companies say they doubt the deal will have any immediate impact on the dedicated server business, aside from creating its most significant participant.
The incredibly large-scale acquisitions continued on Tuesday, when German technology company United Internet announced a deal to acquire UK Web host Fasthosts Internet Limited for approximately $115 million. United Internet is the parent company of Germany-based Web hosting provider 1&1 Internet, which was only recently overtaken as the world's largest Web host. The company says the takeover will extend United Internet's existing activities in the UK, where Fasthosts is one of the leading Web hosts. The all-cash deal is expected to close this month.
Along with several significant acquisitions, this week saw a string of new event announcements as hosting providers increasingly seek to court customers with informational sessions.
On Wednsday, Web hosting provider Hostway announced plans to hold a live Web seminar entitled "How Search Engine Marketing can Boost Small Business' Revenue" May 23. The session is intended to show small businesses how to boost sales through search engine marketing. Along with representatives from Hostway, the session will include panelists from search giant Google, and will explore current and future trends in search engine marketing, presenting ideas for creating online marketing presences.
Also on Wednesday, server management solution provider Raritan U.K. and Unite Technology Partnership announced plans to hold a data center technology event June 14 and 15 in London, England. The event, "The Data Center Management Solutions Event 2006," is a one-day seminar covering the issues of managing IT infrastructure in today's data center. Experts from IT companies will share their expertise through both installations of the seminar.
And on Thursday, Peak 10 announced that it, too, plans to hold a Web-based security seminar on May 23. The free Peak 10 webinar will offer insight into programs that monitor, manage and respond to network threats. Presented in conjunction with ProtectPoint Security, the session will provide real-world case studies and an overview of security solutions, as well as a venue for asking questions and learning best practices.
While there was an interesting burst of seminars announced this week, there is no doubt about the most significant trend in this week's Web hosting news. Two major instances of consolidation in the hosting market, the acquisitions of Fasthosts, EV1Servers and The Planet will very likely prove to be an important milestone in an ongoing and significant industry trend.
On Saturday, it was reported that investment firm GI Partners had acquired controlling interests in Everyone's Internet and The Planet, two of the largest Web hosting providers in the world. Both companies are based in Texas, and both are especially strong in the dedicated server market. GI Partners reportedly has more than $1.4 billion in capital under management, and had previously made significant investments in data center real estate firm Digital Realty Trust and communications provider Savvis Communications.
Later on the weekend, it was reported that the companies had merged, creating a combined entity that would support more than 20,000 clients and 50,000 dedicated servers. The company will be the largest dedicated hosting provider in the market, with the scale and financial strength to improve service levels and product innovation. However, both EV1Servers and The Planet will continue to operate as independent brands.
On Tuesday, the WHIR spoke to executives from both EV1 Servers and the Planet, who discussed the beginnings of their work together. The companies say they are currently examining the practices at both organizations and planning to optimize operations by adopting the most efficient technologies and business practices across the entire organization. While the deal will certainly mean substantial changes to the resources available to The Planet and EV1Servers, representatives for the companies say they doubt the deal will have any immediate impact on the dedicated server business, aside from creating its most significant participant.
The incredibly large-scale acquisitions continued on Tuesday, when German technology company United Internet announced a deal to acquire UK Web host Fasthosts Internet Limited for approximately $115 million. United Internet is the parent company of Germany-based Web hosting provider 1&1 Internet, which was only recently overtaken as the world's largest Web host. The company says the takeover will extend United Internet's existing activities in the UK, where Fasthosts is one of the leading Web hosts. The all-cash deal is expected to close this month.
Along with several significant acquisitions, this week saw a string of new event announcements as hosting providers increasingly seek to court customers with informational sessions.
On Wednsday, Web hosting provider Hostway announced plans to hold a live Web seminar entitled "How Search Engine Marketing can Boost Small Business' Revenue" May 23. The session is intended to show small businesses how to boost sales through search engine marketing. Along with representatives from Hostway, the session will include panelists from search giant Google, and will explore current and future trends in search engine marketing, presenting ideas for creating online marketing presences.
Also on Wednesday, server management solution provider Raritan U.K. and Unite Technology Partnership announced plans to hold a data center technology event June 14 and 15 in London, England. The event, "The Data Center Management Solutions Event 2006," is a one-day seminar covering the issues of managing IT infrastructure in today's data center. Experts from IT companies will share their expertise through both installations of the seminar.
And on Thursday, Peak 10 announced that it, too, plans to hold a Web-based security seminar on May 23. The free Peak 10 webinar will offer insight into programs that monitor, manage and respond to network threats. Presented in conjunction with ProtectPoint Security, the session will provide real-world case studies and an overview of security solutions, as well as a venue for asking questions and learning best practices.
While there was an interesting burst of seminars announced this week, there is no doubt about the most significant trend in this week's Web hosting news. Two major instances of consolidation in the hosting market, the acquisitions of Fasthosts, EV1Servers and The Planet will very likely prove to be an important milestone in an ongoing and significant industry trend.
Reads: 1467 | Category: General | Source: TheWHIR : Web Host Industry Reviews
URL source: http://www.thewhir.com/marketwatch/051206_The_Web_Host_Industry_Week_in_Review.cfm
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