EIG Files for IPO
Endurance International Group (EIG) which is the owner of Hostgator has filed for IPO with SEC. The IPO is for raising of $400 million from the stock market. The documents filed by EIG also revealed that EIG paid around $300 million to acquire Hostgator. It has also been revealed through the documents that EIG has signed agreement to acquire India’s leading web hosting company Directi. EIG is backed by Warburg Pincus LLC and GS Capital Partners (private equity firm of Goldman Sachs). The Warburg Pincus LLC and GS Capital Partners has bought the stake from Accel KKR in the year and valued the EIG at around $1 Billion.
The price of the shares and the number of shares has not been revealed yet. The proceeds from the IPO will be used for paying for the acquisition of Directi and also for day to day needs of the company. EIG has also recorded that the revenue for the EIG has tripled to $299 million while its losses tripled to around $139 million.
Endurance International Group is in Web Hosting and Domains business since 1197. It was by a person of Indian origin, Hari Ravichandran who is also the current President and CEO of EIG.
EIG has grown its business mainly through acquisitions and in this process it has acquired some of the top names in web hosting business like Hostgator, Bluehost, Fatcow, JustHost, Hostmonster, Dotster and over 20 more. Through this process EIG has now been in direct competition with Godaddy which is another huge player in the web hosting and domains registration market. The acquisition of Directi will give tremendous boost to EIG’s web hosting business in India. After Hostgator India, Directi will have another very big infact No.1 company in India. Godaddy has also been campaigning very hard in India to acquire more customers and EIG’s acquisition of Directi will give tremendous boost to its effort to acquire customers from India.
Cloud Hosting is the buzz word in the web hosting industry nowadays. Most of the web hosting companies are now offering cloud hosting services. But what exactly is cloud hosting? We will discuss cloud hosting in this post.
What Is Cloud Computing?
Cloud computing can be described as the network of different computing device working together to provide the required service. In the web hosting industry, cloud computing is generally defined as having different web hosting servers for different services like mails, ftp, etc. This ensures that in case of failure of any single server does not affect the whole service.
Advantages of Cloud Hosting
- Redundant data storage – Failure of a Hard Drive does not affect the site. The Site will continue to run using other Hard Drive.
- Dedicated resources – Cloud hosting ensures that the resources are dedicated to you and not shared with other users.
- No single point of failure – The service is redundant and distributed to ensure that there is no single point of failure.
- Resource usage efficiency – Cloud computing is highly scalable and flexible hosting solution which ensures that you get the required resources when you need it..
- Security – Cloud user is isolated and hence the problem associated with one user does not affect the performance or security of other users.
How Cloud Servers Works?
The cloud servers are nothing but pooling together of many different servers as one unit and then it is divided into many virtual servers.
Cloud Computing Components
File System : Cloud computing follows a distributed file system which is hosted on multiple Hard Disks. Data is stored in multiple place and in the case of failure of any single storage space, the other unit immediately takes it place.
Virtualisation : Virtualisation program is an important part of the cloud computing which ensures effective division of resources for the users.
Private cloud is referred to a cloud infrastructure which is made specifically for a single organisation. It can be hosted internally or externally.
Public Cloud is a cloud infrastructure in which services are open for public subscription.A cloud is called a ‘Public cloud’ when the services are rendered over a network that is open for public use