The web hosting industry has seen significant growth and consolidation over the years. Some of the largest companies have acquired smaller or competing providers to expand their customer base, introduce new services, and create stronger brand recognition. These acquisitions have shaped the hosting landscape, affecting everything from pricing to available features and service quality. In this post, we’ll explore five major acquisitions that changed the industry, the reasons behind these deals, and their impact on customers and the hosting landscape.

1. Endurance International Group’s Acquisition Spree

Endurance International Group (EIG) is one of the most active players in the web hosting acquisition space. Over the years, EIG has acquired several well-known hosting brands, including Bluehost, HostGator, and iPage. Through these acquisitions, EIG has positioned itself as a major provider of budget-friendly hosting solutions.

• Reason for Acquisition: EIG’s strategy was to consolidate smaller hosting companies under its umbrella, centralizing resources and customer support for efficiency.
• Impact on Customers: While EIG expanded its reach, some customers reported a decline in support quality and site performance after the acquisitions, likely due to resource centralization and cost-cutting measures.
• Industry Influence: EIG’s acquisition spree highlighted the trend of consolidation, where larger corporations absorbed smaller companies to create hosting conglomerates, limiting the number of independent hosting providers.

2. GoDaddy’s Strategic Acquisitions for Expansion

GoDaddy has become one of the most recognized names in domain registration and hosting, thanks in part to its strategic acquisitions. GoDaddy has acquired multiple hosting and website service providers, including Media Temple, Sucuri, and Host Europe Group.

• Reason for Acquisition: GoDaddy aimed to diversify its offerings, adding managed WordPress hosting (Media Temple) and website security (Sucuri) to appeal to different customer segments.
• Impact on Customers: For users, GoDaddy’s acquisitions meant a broader range of services under one roof, with the added benefit of GoDaddy’s streamlined platform. However, some legacy users expressed concerns over potential changes to pricing and service options.
• Industry Influence: GoDaddy’s acquisitions allowed it to create a comprehensive suite of tools for website owners, shaping it as an all-in-one solution for small businesses and entrepreneurs.

3. Web.com’s Acquisition of Network Solutions

Web.com acquired Network Solutions, one of the oldest domain registrars, in a high-profile acquisition. This move allowed Web.com to position itself as a major player in domain registration and web hosting services.

• Reason for Acquisition: By acquiring Network Solutions, Web.com gained access to a well-established customer base and expanded its brand presence in the domain and hosting markets.
• Impact on Customers: While customers benefitted from Web.com’s increased resources and expanded services, there were concerns over pricing and support quality.
• Industry Influence: This acquisition underscored the value of domain registrars in the hosting industry, with companies like Web.com using acquisitions to gain more market share.

4. Liquid Web Acquiring Nexcess for Managed Hosting Solutions

Liquid Web is known for its managed hosting services, focusing on high-performance solutions for businesses. By acquiring Nexcess, a leader in managed WordPress and WooCommerce hosting, Liquid Web expanded its capabilities in the managed hosting space.

• Reason for Acquisition: Liquid Web sought to diversify its offerings by adding specialized hosting solutions for WordPress and eCommerce, making it a more attractive choice for digital agencies and online stores.
• Impact on Customers: The acquisition enhanced the services available to Liquid Web customers, providing tailored hosting solutions with improved scalability and performance.
• Industry Influence: Liquid Web’s acquisition of Nexcess reflected the demand for niche, managed hosting services, especially for content-heavy and eCommerce-focused websites.

5. DigitalOcean’s Acquisition of Cloudways for Managed Cloud Hosting

In a bid to strengthen its position in cloud hosting, DigitalOcean acquired Cloudways, a managed cloud hosting platform. This acquisition allowed DigitalOcean to offer enhanced managed services and attract a wider audience, especially small businesses and developers.

• Reason for Acquisition: DigitalOcean aimed to provide a managed hosting option to appeal to users seeking ease of use, without compromising on cloud capabilities.
• Impact on Customers: For DigitalOcean users, the acquisition meant access to a managed platform with simplified tools for deploying and scaling cloud applications, reducing the need for technical expertise.
• Industry Influence: This acquisition showcased the increasing demand for managed cloud solutions, as more businesses sought the benefits of cloud without the complexities of managing server infrastructure.

Why Acquisitions Matter in the Hosting Industry

These acquisitions have reshaped the hosting industry, contributing to both benefits and challenges for customers. Some key effects of these acquisitions include:

• Improved Services and Features: Acquisitions often bring new resources, features, and technologies that improve the service offerings for end-users.
• Pricing Changes: With consolidation, some companies adjust their pricing models to reflect new services or streamline operations, which can result in price increases for customers.
• Impact on Support Quality: Larger hosting conglomerates may centralize support teams, which can impact the quality and responsiveness of customer support.