Sydney cloud-based performance website hosting company HostGenius has today announced its acquisition of competitor SpeedHost, scooping up its customer base and hosting infrastructure.
The acquisition comes while HostGenius, an offshoot of IT consultancy firm and Google for Work partner IT Genius, which helps businesses migrate from old technology systems to Google apps, is still in soft launch mode.
Peter Moriarty, managing director of IT Genius, said, “We’ve been extremely pleased with the uptake of customers onto our performance cloud hosting platform. We welcomed an opportunity for the SpeedHost team to join HostGenius as the product philosophy and customer bases of both companies were very well aligned.”
Moriarty said HostGenius has no plans to retire the SpeedHost brand in the immediate future, but rather said the company looks forward to providing additional value to SpeedHost’s existing customer base as they are welcomed into HostGenius.
HostGenius launched in January last year on the basis of the idea that sites that load faster rank better in Google search results, in turn of course resulting in better results and leads for businesses.
The company states that it works by using a network of mirror servers spread across 30 global data centres, which automatically distribute a copy of static files on a website across the network. It then automatically routes visitors to the nearest data centre.
The result is that websites load twice as fast, HostGenius states, and even a few seconds make a difference: surveys have found that nearly 50 percent of internet users expect a site to load in two seconds or less, and tend to abandon a site if it hasn’t loaded within three.
What’s more, 79 percent of online shoppers who have trouble with site performance state they won’t return to the site to buy again, and 44 percent would tell a friend if they had a poor experience shopping online.
The focus on the cloud for Moriarty comes after years spent running IT Genius as a traditional IT consultancy, selling servers, setting up networks for people, and providing customers with old-school tech support.
Then, around four years ago, Moriarty began to see a shift in landscape to the cloud, and went about pivoting the IT Genius business model.
Though deal value dropped at first – for example, a new client now might produce a deal size of $5,000, compared to the old business model bringing in deal sizes worth $30,000 per year – Moriarty said IT Genius, also helped along by the launch of HostGenius, is now doing better than ever before.
Image: Peter Moriarty. Source: Supplied.