Home Technology PlusServer Sold @ $456M; GoDaddy’s AWS-style Cloud Services Come To An End

PlusServer Sold @ $456M; GoDaddy’s AWS-style Cloud Services Come To An End

345
0
SHARE
PlusServer Sold @ $456M; GoDaddy’s AWS-style Cloud Services Come To An End

The big guy in domain registration and web hosting, GoDaddy is all set to report its quarterly results in the coming weeks. Keeping in view of this, the company is taking giant strides with one them being the sale of its PlusServer business. The company has all but confirmed that it is going to sell its European PlusServer business at a whopping $456M (€397 million) to London-based private equity firm BC Partners. The company is reportedly shutting down Cloud Servers as well, an AWS-styled service for building, testing and scaling cloud solutions. The Cloud Server was launched in March 2016 and was a way to offer AWS-styled services to GoDaddy’s 17million users. Interestingly, it is quite surprising to see a service launched only last year to see curtains at such an early stage.

The social media is abuzz with the sale of servers and end of cloud services by GoDaddy. Users have taken to platforms like FB & Twitter to share the closure memo which was sent to them by the company. As per the Cloud Server memo, the services will be discontinued from 31st Dec 2017. Also, the memo clearly states that the apps and development environments provided by one of GoDaddy’s partner firms Bitnami will also be shut down from 15th Nov 2017.

As per the official statement from the company, it has advised the users to switch over to its other products. A clear alternative encouraged by the company are the VPS plans but will GoDaddy continue with Cloud Services in the future remains to be seen. According to GoDaddy’s former hosting and security SVP Jeff King, the company wants to enable small business to grow but as luck would have it, King himself left the company and joined Facebook this year. The reason behind the sudden closure of a service only after one year of its launch has left many in a limbo.

Many believe that it is part of the larger acquisition and merger plan that GoDaddy has on its mind. The company has shifted its focus from Cloud Services and is aiming at more features and support for users. This became evident from the acquisitions that the company has made over the last couple of years which includes- Sucuri that enables users to secure websites on their own, ManageWP and WP Curve for users to build and manage sites on platform WordPress; and communications service like FreedomVoice.

Well, what it seems is pure calculated and predetermined step by the company to dig deeper roots in the European Market. GoDaddy has already purchased a rival Host Europe Group (HEG) in December 2016 for a galloping $1.8 billion. To get the numbers right, the liabilities of €23 million and cash of €12 million on the balance sheet by selling PlusServer will be used to by the €500 million bridge loan that GoDaddy took for HEG acquisition.