Apr 15, 2005 : The webhost industry: week review

📅 April 15, 2005 - The spring seems to be shopping season in the Web hosting business, as the flood of acquisition news carried with vigor into this week's Industry announcements.

On Monday, Internet infrastructure and security provider VeriSign announced that it had completed its acquisition of wireless messaging and interoperability firm LightSurf, for $270 million in VeriSign stock. According to VeriSign, the addition of LightSurf's technology is expected to enable the company to offer carriers a wireless utility that includes functions for picture messaging, multimedia messaging and inter-carrier messaging and interoperability. VeriSign will add 300 full-time LightSurf employees.

Web hosting firm Vericenter announced on Monday that it had acquired data hosting firm Agility. Vericenter will take over Agiliti's data center in St. Paul, Minnesota and most of the company's 65-person staff. Agiliti CEO Tom Keiffer will join Vericenter's board of directors. Keifer, with a team of Agiliti employees, has created a new professional services company known as Vertiva. Vericenter says it has been growing steadily since its acquisition of Sprint's hosting division in 2002.

On Tuesday, Web hosting firm Via Net.Works announced that it had agreed to sell all its business operations to Web host Claranet for approximately $27 million in cash. The deal will give Claranet all of Via's US and European businesses, including PSINet Europe and the Amen Group, both acquired by Via last year. Claranet acquired Via's UK operations last September. Via had announced just weeks before that it was facing a financing crisis, and was actively seeking financing.

And on Thursday, network infrastructure maker Cisco Systems announced that it had signed an agreement to acquire server fabric switch developer Topspin Communications for $250 million in cash and options. Cisco will take on Topspin's technology and its 135 employees, which are divided between California and India. The acquisition will enable Cisco to deliver specialized networking technology and services.

Along with the now-standard selection of acquisition news, this week saw an assortment of Web hosting firms supplement their businesses in another way, touting newly acquired certifications

On Monday, data center operator 365 Main announced that it had completed its Statement of Auditing Standards no. 70 Type 2 audit, following a year in which the company also completed the ISO 9000:2000 audit. Developed by the American Institute of Certified Public Accountants, SAS 70 certifies that a service provider has undergone an audit of control activities, including IT functions. 365 Main completed the SAS 70 Type 1 audit in January, and the Type 2 audit in February.

Several hosting companies announced their involvement with a new program from the Better Business Bureau designed to promote reliability among online businesses.

On Tuesday, Web hosting provider ReadyHosting.com announced that it had earned the Better Business Bureau's OnLine Reliability Seal. The company says the seal confirms that the company is a member if its local BBB and has undergone a review to determine adherence to advertisement guidelines and acceptable customer service.

Also on Tuesday, Web hosting provider MonsterHosting.ca announced that it, too, had become a participant in the Online Reliability Program. MonsterHosting says its participation is confirmed through April 2006. The company says a recent internal survey showed almost all of the company's more than 2,000 clients considered its customer service excellent.

It seems only reasonable, at this point, to assume that the flow of acquisition news will continue into next week, as Web hosting providers see their plans for 2005 reach full swing.