Nov 19, 2004 : The webhost industry: week review

📅 November 19, 2004 - This week's Web hosting industry news included a variety of announcements, all significant for different reasons, including a major Web hosting acquisition, the furthering of the trend toward lower domain name pricing and the launch of several new reseller offerings.
On Thursday, it was reported that SunGard Availability Services, a subsidiary of financial services industry software and solutions developer SunGard, had acquired Web hosting provider Inflow. Following the completion of the acquisition, SunGard says it will serve more than 10,000 customers in more than 3.5 million square feet of data center space. The acquisition includes 14 data centers operated by Inflow across the United States. According to SunGard, the acquisition will give Inflow customers access to an increased range of business continuity and high availability services. The deal is expected to close in the first quarter of 2005.
Earlier in the week, business process outsourcing firm the CyberNet Group announced that it had acquired a 60 percent controlling interest in the AyalaPort Makati data center in the Philippines, and had taken over management of the facility and renamed it CNG Global Data Hub. The Ayala Group will retain a 30 percent minority share in the facility. CNG did not disclose the details of the transaction, though it said it would not dramatically change the way the facility is managed.
While the acquisition news may have had the most specific impact, the domain-related announcements in this week's news were the latest steps in a powerful trend affecting the Web hosting business on an ongoing basis.
On Tuesday, Web hosting provider Netfirms announced that it had lowered the prices for a range of domain names, including .com and .net, to $4.95 per year, including a free Web site starter CD, Web-based domain management and 24-hour customer service. The package also includes two months of free Web hosting, valued at $29. Netfirm's was the latest announcement in a series of domain price-cutting efforts by Web hosting companies looking to attract customers.
On Thursday, however, Web hosting provider Host Color announced that it had lowered domain registration prices for its Max and Mega Web hosting plans to $3. The company said it would also offer special discounts on account renewal and other hosting orders made by existing custoemers.
The biggest trend from this week, however, was the launch of new reseller services, as several Web hosting companies offered new programs.
On Monday, the US division of Web hosting firm 1&1 Internet announced that it had partnered with online marketing company Commission Junction to develop an affiliate retail program. Program participants sign up through Commission Junction, and receive commissions ranging from $2.50 to $80.00 for each customer referred that signs up for 1&1 products.
Also on Monday, Web hosting provider Carpathia Hosting announced that it had released a new line of dedicated servers for the reseller market. The company says it is offering Dell single- and multi-processor gigabit-connected platforms with un-metered bandwidth plans from 2 to 200 MBPS. Customers can build plans based on their own requirements, says Carpathia.
And on Thursday, Web hosting firm Hosting Zoom announced that it had launched Reseller Zoom, a private label reseller hosting division. According to the company, Reseller Zoom provides support on its customers' behalf.
This week's most immediate impact may have come from SunGard's acquisition of Inflow, however the more lasting impact on the Web hosting business itself may come from the ongoing development of the reseller model and the domain registration business.