GoDaddy Decides to Shut Down its Cloud Business
GoDaddy, the popular website hosting company, has decided to shut down its cloud services within just two years of operations. It has announced that it not support Cloud Servers service after December 31st. Also, it will not support apps and development environments by Bitnami after November 15th.
This announcement was confirmed by Raghu Murthi, the SVP of hosting at GoDaddy. He said that this foray into cloud services has been a good learning experience and he hopes that this experience will be applied to other aspects of its business.
To give you an idea of this cloud service, GoDaddy started offering a suite of cloud applications that are somewhat similar to the ones offered by Amazon, but geared more towards small businesses that can’t afford a service like Amazon. This service allowed small businesses to develop, test and scale solutions on GoDaddy’s infrastructure. It was aimed to give them a peek into the world of cloud and maybe go for a full suite cloud service as they grow.
While the idea was good, it did not really take off for GoDaddy. One possible reason could be the pricing wars that’s happening among major cloud providers. Amazon, Microsoft and Google are slashing their price offerings to woo customers, and this means, cloud services have become affordable for all business, including SMEs.
Obviously when a small business can get a full suite of cloud products for a relatively low price, why would they opt for a service like GoDaddy?
Interesting, GoDaddy announced last week that it’s selling the Plus Server business a private equity firm called BC Partners for $456 million. Only last year, it acquired this business from Host Europe Group.
We don’t know what’s going on within the company at this time, but the next several months can give a clue to it. If I have to guess though, it would either be because the company is going to focus on a niche area that would bring the highest possible returns for it or it is looking to make a foray into something very different and is offloading its not-so-profitable areas now.
But one thing that emerges clearly is a changing cloud landscape that’s likely to be dominated only by the big companies in the future. As cloud requires extensive investments in infrastructure, it may not be feasible for every company to offer cloud services.