In recent years, the web hosting industry has seen a wave of mergers and acquisitions. While these mergers create stronger companies with more resources, they also bring changes that directly impact customers. From potential price changes to enhanced infrastructure, hosting mergers have both upsides and downsides for end-users. In this post, we’ll explore the benefits and challenges of hosting company mergers from a customer perspective and share real-world examples of customer experiences post-acquisition.

Benefits of Hosting Mergers for Customers

1. Upgraded Infrastructure and Technology

When hosting companies merge, the combined resources often lead to infrastructure upgrades. A smaller company joining a larger one gains access to more advanced data centers, improved uptime, and faster servers.

• Example: After GoDaddy acquired Host Europe Group, customers benefitted from improved global infrastructure and more reliable service, as GoDaddy invested in upgrades to better serve international markets.

2. Expanded Features and Services

Mergers often result in a broader range of services. By combining strengths, companies can introduce new products, such as managed WordPress hosting, cloud-based solutions, or enhanced security features.

• Example: Endurance International Group’s acquisitions of Bluehost and HostGator allowed them to offer a more diverse suite of hosting plans. Customers could now select services tailored to their specific needs, whether shared, VPS, or dedicated hosting.

3. Better Support and Resources for Security and Compliance

Larger, merged companies often have more funds to allocate toward data security, backups, and compliance with regulatory standards like GDPR. This is particularly valuable for businesses handling sensitive customer information.

• Example: When DigitalOcean acquired Cloudways, it introduced new security features and compliance protocols that helped businesses meet high-security standards with ease.

4. Consistency and Stability

Merged companies often bring stability. Hosting providers backed by strong financial resources are less likely to face abrupt shutdowns, ensuring continuity for customers who rely on their services.

Challenges of Hosting Mergers for Customers

1. Potential Price Increases

With mergers come additional operational costs, and sometimes, those costs are passed on to customers. Mergers that lead to monopolies or limited competition may cause price hikes for hosting services.

• Example: After certain Endurance International Group acquisitions, some customers reported gradual price increases for renewal plans and additional services.

2. Reduced Quality of Customer Support

One downside of hosting mergers is the potential for less personalized support. When smaller, customer-focused companies are absorbed by larger entities, support becomes centralized and may lack the personal touch and expertise that smaller companies offered.

• Example: Customers of smaller providers acquired by GoDaddy sometimes noticed longer response times and less specialized assistance due to the centralized, high-volume support model.

3. Loss of Unique Features or Services

Certain features that made smaller providers unique may be dropped post-merger as services are standardized across the new parent company. This can be disappointing for customers who relied on specific features for their business.

• Example: When Media Temple was acquired by GoDaddy, some advanced developer-focused tools were phased out, and Media Temple’s unique services became integrated with GoDaddy’s more general offerings.

4. Increased Data Migration Risks

Data migration is often part of hosting mergers as customers are moved to different servers or data centers. This process carries risks of data loss, temporary downtime, and potential compatibility issues, which can disrupt business operations.

• Example: During mergers involving data migrations, such as Liquid Web’s acquisition of Nexcess, some customers experienced temporary site outages as their accounts were transitioned to new platforms.

Real-World Examples of Customer Experiences Post-Acquisition

• Endurance International Group (EIG): Known for acquiring several hosting companies, EIG centralized its operations, which helped reduce costs but often led to reported issues with support and price increases. Long-time customers of HostGator and Bluehost, for instance, experienced changes in service and were dissatisfied with longer support response times.

• GoDaddy and Media Temple: GoDaddy’s acquisition of Media Temple was met with mixed reactions. Some users appreciated the increased infrastructure reliability, while others were disappointed by the loss of specialized support and developer-centric features.

• Liquid Web and Nexcess: Customers of Nexcess benefitted from Liquid Web’s extensive resources and high-quality infrastructure, although the data migration process posed some temporary challenges.