The early days: a unified standard

Shared hosting, in its earliest form, was simplicity at its finest. Hosting companies built their offerings around tools like cPanel, Plesk, and DirectAdmin. These solutions worked, they were accessible, and they quickly became the standard for the industry. Even companies with proprietary control panels eventually aligned themselves with these systems, either by design or necessity. This created a sense of consistency that customers came to expect.

But this standard wasn’t built for eternity. It was built for the world of the early 2000s—a time when the web itself was in its infancy. Now, nearly two decades later, the definition of shared hosting is trapped in that era. What was innovative then is archaic now. And yet, we’re still clinging to it.

Stagnation: the lack of integration

From day one, shared hosting has struggled with a fundamental issue: products were built in silos, and no one cared enough to make them work together. Certificates like SSL had to be verified manually through DNS or email, a cumbersome process for any user. Control panels didn’t even include basic tools for website creation. The most essential task—setting up a website—was left to external vendors who had to patch the gaps software/hosting companies ignored.

And while hosting providers started introducing add-ons like SEO tools or SaaS solutions for eCommerce, they were never truly integrated. Everything was separate. You had your hosting account in one place, your SEO tool in another, and your PPC analytics, traffic, performance in yet another. Nothing worked as one coherent solution.

This problem still exists. Shared hosting remains fragmented, disjointed, and overly complex for anyone who isn’t deeply familiar with the industry. Even worse, upgrading to a VPS or cloud solution—a natural progression for many users—is still a nightmare. Migrations require technical expertise, manual work, and often additional costs. It’s a failure of the very companies that were supposed to make things easier.

Why hasn’t shared hosting evolved?

The truth is that hosting companies have made excuses for decades. Evolving shared hosting is “too complicated” from a technical standpoint. Companies license third-party control panels and billing systems, expecting these vendors to drive innovation. But that never happenned. Instead, the products stagnate while hosting companies focus on squeezing more revenue out of customers.

At the same time, many C-level executives in the hosting industry are disconnected from reality. They focus on financial reports and growth metrics but have no idea how their products actually work—or how their customers are using them. The hosting industry has become a machine that prioritizes profit over progress, and it shows.

The first revolution in hosting

I remember the first real shift in hosting. It came with the introduction of 1-click installers for applications like WordPress. Suddenly, customers weren’t just buying hosting—they were buying the ability to build websites quickly and easily. It was revolutionary at the time, but it took years for most hosting companies to recognize this change.

The smartest players in the industry, like WP Engine, capitalized on this shift early. They saw that users wanted more than infrastructure; they wanted solutions. WP Engine built a business around WordPress and catered to its community with laser focus. Their success wasn’t a coincidence. It was the result of understanding what customers needed before anyone else did.

The myth of “websites are dead”

There was a time when people said websites were becoming obsolete. Social media platforms like Facebook and Google Business Profiles seemed to offer everything small businesses needed. Why bother with a website when you could just create a Facebook page or a Google listing?

And yet, here we are, a decade later, and websites are more relevant than ever. Shared hosting survived this period of doubt, but it didn’t thrive. Hosting companies missed the opportunity to adapt their services to meet the needs of modern website owners. Instead, they stood still while the world moved forward.

An industry stuck in time

For nearly 20 years in the hosting industry, I’ve had the persistent impression that while the entire tech world has evolved, hosting companies have stayed the same. They might add more services (because prices can’t be raised endlessly), but they fail to offer something fundamental—a solution, an ecosystem.

The real innovation has come from communities like WordPress, which revolutionized website building and captured the hearts of millions. Meanwhile, hosting companies have done little more than complain that WordPress hasn’t made things “easier.”

But what have hosting providers done to address these issues? Nothing. For years, cPanel, Plesk, and others have offered the same tools with minor tweaks. Even something as basic as website traffic analysis still relies on outdated tools like AWStats. How can a multi-billion-dollar industry not replace a relic like AWStats with something modern and insightful?

Is shared hosting really dying?

A few months ago, I spoke with the CTO of a large hosting group. He told me that shared hosting was dying and that platforms like Wix and Squarespace were the future. I almost laughed.

If shared hosting is dying, why is M&A activity in the hosting industry stronger than ever? Companies are spending hundreds of millions of euros to acquire shared hosting businesses. If this model is truly on its last legs, why is there such a rush to buy into it?

The truth is that shared hosting isn’t dying. It’s just asleep. The hosting industry has become lazy, relying on outdated models and incremental price increases to survive.

Wake up or get left behind

The hosting industry is at a crossroads. Either it wakes up and starts innovating, or it will be left behind by startups that understand the market better.

Customers don’t want fragmented solutions. They want simplicity. They want to manage their website’s performance, traffic, SEO, security, and resource usage in one place. They want tools that work together seamlessly, not a patchwork of disconnected services.

And here’s the hard truth: this isn’t rocket science. Startups with far fewer resources have already begun to deliver these solutions. The only thing stopping hosting companies from doing the same is their own complacency.

The question isn’t whether shared hosting will survive. It will. The question is: who will step up to lead the industry into the future? Because if the hosting giants won’t do it, someone else will. And when that happens, they’ll only have themselves to blame.

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A global player in web hosting

Founded in 2014, Miss Group has grown rapidly, primarily through strategic acquisitions. As of today, the company operates over 30 brands across multiple markets, serving more than 700,000 customers worldwide. Some of their most prominent brands include:

• Miss Hosting – A core offering with services such as web hosting, VPS, and dedicated servers.
• Miss Domain – Scandinavia’s largest domain auction site.
• NameISP – An ICANN-accredited domain registrar with global reach.
• Domeneshop – Norway’s largest domain registrar, acquired in 2024, giving Miss Group control of over 50% of the .no domain market.

Miss Group’s portfolio also includes several niche and regional brands, with additional players acquired through their ongoing expansion strategy. Many of these acquisitions have been reported and analyzed in previous articles on webhosting.today, including the landmark purchase of Domeneshop​

An AGGRESIVE growth strategy

Miss Group’s approach to growth has centered on acquiring established hosting companies in strategic regions, maintaining their brand identities while integrating them into the larger group. The acquisition of Domeneshop, for example, cemented Miss Group’s dominance in the Nordic market, a region with strong digital adoption rates and high demand for hosting solutions.

Their other acquisitions include smaller but impactful players in markets like the UK, US, and Central Europe, often targeting businesses with loyal local customer bases. However, this aggressive strategy has also led to questions about integration challenges and operational scalability, as highlighted in industry discussions.

The potential sale of Miss Group represents a key moment not just for the company, but for the broader hosting industry. With team.blue, your.online, IONOS, and group.one already dominating many European markets, a change in ownership could either solidify Miss Group’s position or introduce challenges depending on the strategic goals of its new stakeholders.

Additionally, questions remain about the long-term sustainability of their acquisition-driven growth model. Can a new owner maintain the balance between Miss Group’s aggressive market expansion and the need for operational efficiency?

What’s next for Miss Group?

As the sales process unfolds, the industry will be closely watching for signals about the future direction of the group. Will it continue its acquisition spree under new ownership, or will a strategic pivot redefine its role in the hosting industry?

Miss Group’s story reflects the fast-paced, consolidation-heavy nature of the web hosting industry, where adaptability and strategic foresight are critical to maintaining relevance.

Sources:

• Breakit.se – Mattias Kaneteg prepares for Miss Group sale
• Webhosting Today – Miss Group acquires Domeneshop: boosting Nordic market share

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This move marks yet another significant acquisition by group.one in recent years. Earlier, the company expanded its presence in Finland through the purchase of Telia Finland’s web hosting and domain business, integrating it into its Zoner Oy brand. group.one also acquired Webglobe, which served as a foundation for its operations in Central Europe, cementing its status as a key player in the regional hosting market​ (webhosting.today).

However, unlike previous acquisitions, the scale and financial terms of the C4 Webhosting deal have not been disclosed. While details remain under wraps, it is clear that this acquisition aligns with group.one’s broader vision of expanding its infrastructure and service capabilities across Europe.

The acquisition of C4 Webhosting not only reinforces group.one’s footprint in the Czech Republic but also highlights a larger trend of consolidation sweeping through the web hosting industry. As European markets become increasingly competitive, companies like group.one focus on acquisitions to gain market share in new regions.

With its latest move, group.one continues to solidify its reputation as a major consolidator in the European web hosting space, positioning itself as a strong contender alongside other giants like team.blue/your.online.

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Wepardi, known for its reliable hosting services tailored to small and medium-sized businesses, is now part of Group.one’s growing portfolio. This acquisition will integrate Wepardi’s customer base into Group.one’s larger infrastructure, promising enhanced services and a broader product offering for Finnish users. As CEO Daniel Hagemeier stated during a recent acquisition announcement, “We are committed to growing in every key European market and offering best-in-class solutions to our customers.”

This deal is part of a broader trend of Group.one strategically consolidating its position in the web hosting space across Europe. Earlier this year, the company made headlines by acquiring Telia Finland’s domain and hosting business through its Finnish brand, Zoner Oy​ (webhosting.today). With Wepardi now under its belt, Group.one is further positioning itself as a major player in the Nordic market.

While the full details of the Wepardi acquisition remain under wraps, it is clear that Group.one’s aggressive expansion strategy mirrors broader industry trends of consolidation and market capture. Hosting companies across Europe have increasingly sought to strengthen their positions through mergers and acquisitions, aiming to provide a comprehensive range of services to a more diversified customer base​.

This latest move not only solidifies Group.one’s presence in Finland but also highlights the company’s ambition to compete with team.blue for dominance in the European hosting industry.

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The reaction was immediate and divided. Some in the community supported Matt’s critique, aligning it with concerns about private equity firms profiting from open-source projects without meaningful contributions. They argue that Silver Lake’s ownership is squeezing customers without giving back to WordPress, threatening the collaborative spirit that has sustained the project. For Matt, this behavior from a multi-billion-dollar firm is a betrayal of the values the WordPress community holds dear.

Others, however, saw Mullenweg’s comments as inappropriate, questioning whether it was right for him to publicly target WP Engine at such a community-driven event. Several attendees noted that this critique could have been better handled privately or through other channels. The critique also raised questions of conflict of interest, with many noting that Automattic, which owns WordPress.com, directly competes with WP Engine in the hosting space.

In his follow-up article, Matt Mullenweg intensified his criticism of WP Engine, saying, “This is one of the many reasons they are a cancer to WordPress, and it’s important to remember that unchecked, cancer will spread. WP Engine is setting a poor standard that others may look at and think is ok to replicate. We must set a higher standard to ensure WordPress is here for the next 100 years.”

Additionally, this incident drew attention to the larger issue of how companies leveraging open-source software should give back to the community. There’s no formal requirement for contributions, but as Matt pointed out, companies like WP Engine, which heavily benefit from WordPress, should support the project more actively.

Implications

Mullenweg’s critique goes beyond open-source ethics and into business strategy. The public nature of the rebuke could lead to reputational damage for WP Engine, especially given WordCamp’s broad reach within the WordPress ecosystem. With an audience that values both the technical superiority of their hosting solutions and their commitment to the WordPress project, this could prompt migrations to other hosting providers or intensified scrutiny on how WP Engine conducts its business under Silver Lake.

Our thoughts

Mullenweg’s bold comments at WordCamp US may have left the audience divided, but they raise important questions for the future of WordPress. How much should companies profiting from the platform be expected to give back? And at what point do their business practices start to undermine the collaborative foundation of WordPress?

While it’s true that Automattic contributes significantly more hours to WordPress than WP Engine, it’s important to recognize that Automattic also benefits immensely from the collective efforts of the hosting companies and the global WordPress community. Automattic’s business is built on a platform that others, including firms like WP Engine, help to sustain and popularize. The shared success of WordPress is a direct result of this wider collaboration, so the lines between contributing and benefiting are more blurred than the critique suggests.

Moreover, Matt’s decision to criticize WP Engine while simultaneously accepting sponsorship money from them raises ethical questions. If Automattic truly disagrees with WP Engine’s business practices, why continue taking their financial support for WordCamp? To then publicly shame the company while benefiting from their contributions places Automattic in a contradictory position.

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Founded in 2014, Miss Group is an international provider of digital solutions, offering a variety of hosting services at competitive prices. These services include web hosting, domain registration, VPS, dedicated servers, site builders, SSL certificates, SEO tools, web security, and domain management. Additionally, Miss Group is an ICANN-accredited domain name registrar through Name SRS. The company is headquartered in Stockholm, Sweden, with offices in Austria, Bulgaria, Canada, Finland, India, Lithuania, Mexico, Spain, Switzerland, the US, and the UK.

Key acquisitions by Miss Group:

1. Miss Hosting (Sweden) – A core brand offering web hosting and related services across multiple regions.
2. PrivateVPN (Sweden) – A service focusing on secure VPN solutions.
3. Hoststar (Switzerland) – A Swiss provider of web hosting, domains, and email services.
4. IV.lt (Lithuania) – A leading Lithuanian hosting provider.
5. Sered.net (Spain) – A Spanish web hosting and domain registration company.
6. Funio (Canada) – A Canadian provider specializing in hosting and cloud solutions.
7. Hostek (US and UK) – Offering hosting services primarily in the United States and the United Kingdom.

The acquisition of Domeneshop is a strategic step in Miss Group’s plan to dominate the Nordic region. Mattias Kaneteg, CEO and Founder of Miss Group, expressed his enthusiasm about this expansion, stating, “We’re excited to welcome Domeneshop into the Miss Group family. This acquisition not only strengthens our presence in the Nordic region but also aligns with our global strategy to provide comprehensive digital services to our customers.”

Miss Group’s growth strategy revolves around acquiring companies that complement its existing services while maintaining high standards of service quality. Each brand within Miss Group operates with a degree of autonomy, allowing them to retain their local identity and cater to specific market needs.

As Miss Group expands internationally, they continue to strengthen their position in key markets, especially in their home region. The recent acquisition of Domeneshop in Norway demonstrates their focus on solidifying leadership in the Nordic region. This move not only helps them maintain their growth but also reinforces their commitment to offering reliable digital services. By integrating Domeneshop, Miss Group ensures they stay competitive in their core markets while still pushing forward with global expansion plans.

Check out the marketplace for mergers and acquisitions in the hosting industry at webhosting.today. Stay ahead of the latest deals and opportunities!

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GoDaddy posted a 7% year-over-year revenue growth, reaching $1.124 billion in Q2 2024. The Applications & Commerce (A&C) segment was a key driver, with a remarkable 15% increase in revenue to $406 million, compared to $352 million in Q2 2023. This growth was fueled by new product launches, aggressive pricing strategies, and a focus on bundled services that added significant value to customers.

The Core Platform segment, which includes domains, hosting, and security services, showed a modest 3% growth, generating $719 million. Although this segment’s growth was slower, it remains crucial, contributing 64% of GoDaddy’s total revenue. The stability of this segment underscores GoDaddy’s ability to maintain a solid foundation while expanding into higher-margin areas.

EBITDA Margin and Profitability: GoDaddy’s normalized EBITDA margin expanded to 29%, reflecting improved operational efficiency and cost management. This margin expansion is significant, considering the competitive pressures in the digital services market. The company’s focus on reducing friction in customer journeys and leveraging AI to enhance product offerings has played a critical role in achieving this profitability.

In Q2 2024, GoDaddy reported a free cash flow of $323 million, a substantial 35% increase from the $240 million in Q2 2023. This strong cash flow performance is a testament to GoDaddy’s disciplined capital allocation and effective cost control measures. The company’s ability to generate consistent cash flow underpins its long-term growth strategy and shareholder value creation.

Strategic Initiatives: One of the standout initiatives in Q2 2024 was the continued rollout of GoDaddy Airo, an AI-powered website builder that has attracted over 1 million new customers since its launch. This tool not only enhances user experience but also positions GoDaddy at the forefront of AI integration in web services. The success of Airo highlights GoDaddy’s commitment to innovation, a key factor that contributed to the company’s soaring stock price earlier in 2024, as reported by webhosting.today.

GoDaddy also expanded its product bundling strategies, which played a crucial role in boosting the A&C segment’s performance. By offering seamless integration across its product suite, GoDaddy has been able to increase customer lifetime value and reduce churn rates, further solidifying its market position.

Performance of Hosting and Domains in GoDaddy’s Q2 2024

Core Platform Segment Overview:

• Revenue Contribution: $719 million, representing approximately 64% of GoDaddy’s total revenue.
• Growth Rate: The Core Platform, which includes hosting, domains, and security services, grew by a modest 3% year-over-year. This segment remains stable but is growing slower compared to the Applications & Commerce segment.

Domains and Aftermarket:

• Annualized Recurring Revenue (ARR): Core Platform ARR increased by 2% to $2.3 billion.
• Domain Performance: Domains continue to be a reliable revenue stream, but growth has slowed, reflecting market saturation and increased competition.

Hosting and Security:

• Revenue Trends: The hosting and security sub-segments, though stable, did not experience significant growth. The emphasis remains on enhancing the existing services rather than expanding aggressively.
• Profitability: Despite the slower revenue growth, GoDaddy improved its Core Platform’s EBITDA margin reaching 31%. This indicates better cost management and efficiency in these services.

GoDaddy’s strategy in hosting and domains focuses on maintaining a stable revenue base while pushing for higher-margin growth in other areas like Applications & Commerce. The company’s modest growth in these traditional services suggests a shift in focus towards more innovative and high-growth segments, such as AI-powered tools and enhanced commerce solutions. The hosting and domain market is increasingly competitive, with many players offering similar services. GoDaddy must continue to innovate within these segments to retain market share and drive incremental revenue growth. The company’s current approach suggests a balanced strategy of sustaining its core business while pursuing new opportunities in higher-margin segments.

Revenue Overview:

• Total Revenue: $1.124 billion (7% YoY growth)
• Core Platform: $719 million (3% YoY growth)
• Applications & Commerce: $406 million (15% YoY growth)

Profitability:

• Normalized EBITDA Margin: 29% (400 bps improvement)
• EBITDA: $332 million (25% YoY growth)
• Net Income: $146.3 million (13% net income margin)

Cash Flow and Shareholder Returns:

• Free Cash Flow: $323 million (35% YoY growth)
• Unlevered Free Cash Flow: $369 million (30% YoY growth)
• Share Buybacks: $3.1 billion in cumulative share repurchases, reducing outstanding shares by 23% since January 2022.

Key Metrics:

• Average Revenue Per User (ARPU): $210 (6% YoY growth)
• Total Customers: 21 million (stable YoY)

Debt and Liquidity:

• Net Debt: $3.42 billion
• Leverage Ratio: 2.4x (improved from 2.8x in 2022)

GoDaddy’s stock demonstrated notable volatility following the release of its Q2 2024 earnings on August 1, 2024, but ultimately showcased a strong recovery, driven by market reassessment of the company’s solid financial performance and strategic direction.

Earnings day stock market reaction (August 1, 2024)

• Opening Price: $146.07
• Closing Price: $141.41
• Percentage Change: -3.2%

On the day of the earnings release, GoDaddy’s stock initially dropped by 3.2%, closing at $141.41 from an opening price of $146.07. The stock hit an intraday low of $140.51, reflecting investor uncertainty or profit-taking, despite the company reporting strong financials, including a 7% year-over-year revenue increase.

Immediate recovery (August 2-5, 2024)

• August 2, 2024 Closing Price: $151.25
• August 5, 2024 Closing Price: $157.53
• Percentage Change (August 1 to August 5): +11.4%

Following the initial dip, the stock rebounded sharply, gaining 11.4% from the August 1 close to reach $157.53 by August 5. This quick recovery suggests that the market’s initial reaction was overly cautious, and investor confidence returned as they digested the earnings details more thoroughly.

Sustained Upward Momentum (August 6-13, 2024)

• August 6, 2024 Closing Price: $152.02
• August 13, 2024 Closing Price: $160.11
• Percentage Change (August 5 to August 13): +1.6%

From August 6 onward, the stock continued to gain momentum, closing at $160.11 on August 13, 2024. This represents a more moderate 1.6% increase from the August 5 close, indicating sustained investor optimism. Overall, from the post-earnings low on August 1, the stock increased by 13.2% to reach $160.11, reflecting a strong recovery and positive market sentiment.

Year-to-Date Context

• Price on January 1, 2024: $100.22
• Price on August 13, 2024: $160.11
• Year-to-Date Percentage Increase: +59.7%

Looking at the year-to-date performance, GoDaddy’s stock has surged by nearly 60%, from $100.22 on January 1 to $160.11 by August 13. This remarkable growth highlights the company’s strong execution of its strategic initiatives, including expanding its high-margin Applications & Commerce segment and rolling out innovative AI-driven products like GoDaddy Airo.

It’s unfortunate that GoDaddy has lost its edge in expanding its market share in hosting and domains, especially at a time when many other companies in the industry are achieving significant success in these areas. Despite its focus on innovation and growth in new segments, GoDaddy’s inability to strengthen its position in its traditional core services is a concerning trend.

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The Genesis of Domai.io

The inception of Domai.io began with the personal frustrations of its CEO, Matt Duchesne, who struggled to find brandable domains for his projects. This challenge led to the creation of DomainsGPT, a search engine that generates brandable domain suggestions for end users and domainers alike. The success of DomainsGPT, which quickly grew to generate over 5,000 domain suggestions daily, paved the way for the birth of Domai.io. Matt wished to improve the search experience across the board, stating: “we had great AI search engines, while most registrars still operate with 20 year-old tech. So I thought, why not distribute our tech?” and Domai.io was born.

Collaborations and breakthroughs

From its early days, Domai.io focused on forming strategic partnerships to enhance its offerings. Matt shared that “Domainers look for brandable domains. Most small businesses have a name in mind by the time they visit a registrar’s website. We had to make sure we could satisfy everyone, and that our API met registrars’ expectations.” The first major breakthrough came through a collaboration with DotPH, the official registry of the Philippines. This partnership allowed Domai.io to develop its first commercial API tool, leveraging DotPH’s infrastructure and Domai.io’s search engines.

While seeking opportunities to collaborate on product development, Domai.io engaged with several registrars. Many were open to integrating the tool but were unable to commit to further product development collaboration due to other commitments or lack of resources. This led Domai.io to refine its approach and focus on partners who could actively contribute to product enhancement.

The turning point came with NameSilo. Kristaps Ronka, CEO of NameSilo, recognized the potential of Domai.io’s AI technology and decided to test it on NameSilo’s platform. This partnership was marked by intense technical discussions and a rigorous development process. For several months, both teams have engaged in intense back-and-forth to find the best ways to deliver the AI suggestions. The discussions were stressful, with moments where the deal seemed at risk of falling through, shared Domai.io’s CEO. “However, our ability to critique each other’s ideas productively led many significant improvements in the product.”

Strategic Investment from NameSilo

The culmination of this partnership was NameSilo’s decision to invest in Domai.io. This investment was not initially sought by Domai.io but emerged from a shared vision of transforming the domain registrar industry through AI. The capital infusion will be directed towards enhancing Domai.io’s AI-powered services and enabling other registrars and resellers to compete with industry giants like GoDaddy’s AIRO. Domai.io did not share the details of NameSilo’s investment which are still under NDA.

Looking ahead

With the backing of NameSilo and DotPH, Domai.io is now positioned to drive the future of AI-powered domain services. The company currently generates over 1 million domain suggestions daily, which are 1 million potential businesses and investments. Domai.io aims to offer registrars a comprehensive suite of services, including a logo builder, website builder, SEO content generation, and personalized marketing. The initial data suggests a 12% improvement in domain registrations, highlighting the effectiveness of their tools. As it embarks on its next phase, Domai.io is seeking to work more closely with registries. Through its API, the company holds significant shelf space. “We have a responsibility to ensure our suggestions reflect the relevance of all TLDs and meet the requirements of the registrars we work with.” shared Domai.io’s CEO. The company’s success in leveraging AI to enhance the experience of end-users and domainers could set new standards and offer valuable insights into the future of domain services.

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I had the opportunity to speak with Simeon Mitev, CEO of HostArmada, who shares the company’s history, how they scaled, customer acquisition strategies, and future market trends. Simeon provides invaluable insights into affiliate marketing for hosting companies. I’m pleased to share this interview, as Simeon promised straightforward answers without any fluff.

Łukasz Gawior: Could you give a brief overview of the history of HostArmada?

Simeon Mitev: HostArmada’s journey began in the last quarter of 2019, a period marked by enthusiasm and vision. We launched with the usual suite of web hosting products housed in just a few data centers. From the start, we committed to our core principles: speed, security, and stability which started resonating with our early adopters and quickly attracted major affiliates, setting a strong foundation for growth. However, the path ahead was anything but smooth. The world soon plunged into unprecedented times with the outbreak of COVID-19, leading to a global recession and increasing inflation. These challenges could have derailed our momentum, but instead, they motivated us to work even harder. Faced with an uncertain economy, we had to recalibrate our expectations and rethink our strategies if we wanted to stay afloat. So we can definitely say that the early years tested our resilience. However, lowering our expectations wasn’t a sign of defeat but a strategic move to ensure sustainable growth. With renewed focus, we embarked on an aggressive improvement campaign, dramatically enhancing our existing products and expanding our portfolio with new, cutting-edge solutions.

Łukasz Gawior: What were the biggest hurdles you had to overcome when entering the market?

Simeon Mitev: Partnerships played a crucial role in our evolution. Aligning with industry leaders like YoastSEO and WP Rocket, we not only enriched our offerings but also reinforced our commitment to providing top-tier services. These collaborations were more than just business deals; they were strategic alliances that strengthened our market position and credibility. Today, HostArmada stands stronger and more resilient than ever. The trials we faced in our formative years have shaped us into a company that not only endures but thrives in the face of adversity. Our story is one of perseverance, innovation, and unwavering dedication to our core principles, guiding us as we continue to grow and serve our customers with excellence.

Łukasz Gawior: What inspired you to start a web hosting company?

Simeon Mitev: After working for a few major web hosting brands, I started identifying negative management patterns that lead to waste of employee potential and lost financial opportunities. My ideas and suggestions were not appreciated in the way how I anticipated and I started asking myself if my time will be more useful elsewhere which born the vision behind HostAramda: I imagined a company where web hosting innovation thrived alongside a productive and positive work environment. I wanted to build a place where employees felt valued, empowered, and free from the daily stresses that plagued many traditional workplaces. The idea was simple yet profound: to blend cutting-edge web hosting technology with a supportive and motivating company culture. I believed that happy, motivated employees would naturally lead to happier customers and exceptional service. This philosophy became the cornerstone of HostArmada.

Łukasz Gawior: What key steps did you take to build HostArmada from the ground up?

Simeon Mitev: Building HostArmada was a journey marked by careful planning, unexpected opportunities, and the invaluable contributions of a talented team. Here’s how we turned our vision into a successful and thriving web hosting company:

1. Extensive Market Research and Business Planning: Every business starts with a market research, and we were no difference. Understanding the industry’s dynamics, identifying gaps, and recognizing opportunities were crucial. This research was later used in the development of a comprehensive business plan and blueprint that would guide our journey.
2. Finding the Right Partner: Fate intervened when I least expected it. I was preparing to pitch to potential investors when I was contacted by Mr. Atanas Tanev, who would become our co-founder and CMO. Over a dinner, I shared my vision for HostArmada, and he saw the potential immediately. His belief in the concept was a pivotal moment, as it provided the necessary investment and partnership to move forward.
3. Assembling a Dream Team: Bringing HostArmada to life required more than just capital—it needed a team of dedicated professionals. The news of our venture spread quickly, and I was fortunate to reconnect with some of my former colleagues. These were individuals with whom I had previously enjoyed great synergy. Their expertise and enthusiasm were instrumental in getting our project off the ground.
4. Development: With a committed team in place, we spent several months meticulously forming the company and developing the software products essential for our operations. This phase was intense, involving countless hours of coding, testing, and refining our offerings to ensure they met the highest standards.
5. Official Launch: After months of hard work and dedication, we officially launched HostArmada. The culmination of our efforts was a company ready to make its mark in the web hosting industry, armed with innovative solutions and a team dedicated to our core principles of speed, security, and stability.

Łukasz Gawior: What marketing and sales methods were most effective in the beginning?

Simeon Mitev: Entering the competitive web hosting market required a multifaceted marketing approach. We primarily relied on affiliate marketing, content marketing, and social media marketing.

Affiliate marketing was our cornerstone. By partnering with influential affiliates, we leveraged their networks and credibility, quickly gaining visibility. Offering attractive commission structures ensured affiliates were motivated to promote our services, creating a win-win situation.

Content marketing played a role as well. We created high-quality, informative content in the form of tutorials, guides and blog posts that addressed common web hosting questions and issues. This established our authority and improved our organic search rankings, driving more traffic to our website.

Social media marketing was also essential. We launched engaging campaigns across platforms like Facebook, Twitter, LinkedIn, and Instagram, mixing promotional content with customer reviews. Active engagement helped us build a loyal community and strong customer relationships.

Promotional offers, such as competitive discounts, attracted new customers and encouraged current ones to advocate for our brand.

Combining these strategies allowed us to penetrate the hosting market, build brand awareness, and establish a foundation for ongoing growth, focusing on lasting relationships and community trust.

Łukasz Gawior: How did you manage to acquire your first 1000 customers?

Simeon Mitev: Acquiring our first 1000 customers was a strategic effort that combined timing, marketing investment, and strong partnerships. We launched HostArmada just before the Black Friday promotional period, a prime time for attracting customers seeking deals. Capitalizing on this, we invested heavily in ad campaigns across Google, Facebook, and LinkedIn. These ads were designed to highlight our unique value propositions and attract a wide audience. Additionally, as I mentioned earlier, we forged strong relationships with affiliates right from the start. These affiliates, with their established networks and credibility, played a crucial role in driving traffic to our website and converting visitors into customers. Their endorsements helped build trust and credibility, making potential customers more likely to choose HostArmada over competitors.

Łukasz Gawior: What are your main competitive advantages over other hosting companies?

Simeon Mitev: HostArmada stands out in the crowded web hosting market through a few key advantages. Our pricing is highly competitive, offering excellent value without compromising on quality. The specifications of our products are best on the market, ensuring superior performance, and reliability for our customers. Our unwavering commitment to the core principles—speed, security, and stability—sets us apart. We prioritize these values in every aspect of our service, from infrastructure to customer support. Additionally, our dedication to every customer request is unmatched. We provide personalized support, ensuring that each client’s needs are met promptly and effectively.

Łukasz Gawior: What were the key moments in the company’s history that contributed to its growth?

Simeon Mitev: One pivotal factor was our ability to maintain competitive pricing despite rising infrastructure, software licensing, and labor costs. This commitment to affordability allowed us to attract and retain customers even in challenging economic conditions. Another significant moment was the introduction of continuous improvements to our services. By consistently enhancing our offerings, we ensured that our customers received top-tier performance and reliability. Additionally, forming strategic partnerships with industry leaders brought new value to our services at no additional cost to our customers. These partnerships provided access to premium tools and resources, further enhancing the overall customer experience.

Łukasz Gawior: How big a company is HostArmada currently? How many people do you employ?

Simeon Mitev: In terms of the number of employees, HostArmada can definitely be considered as a small company with around 20 employees. Despite our modest size, our capacity and productivity rival those of a team 10 times as large. This efficiency is achieved through numerous automation processes and continuous improvements over the standard workflows typical in the web hosting industry. Our lean, highly effective team allows us to provide top-tier service and support, maintaining a competitive edge in the market.

Łukasz Gawior: What services do you offer? Do you plan to expand your offerings in the near future?

Simeon Mitev: We currently offer a comprehensive range of managed web hosting products, including Cloud Shared Hosting, Cloud WordPress Hosting, Cloud VPS Hosting, Cloud Reseller Hosting, and Dedicated CPU Hosting. These services cater to a wide variety of needs and ensure robust performance and reliability for all types of websites. Looking ahead, we plan to expand our portfolio significantly. We are gearing up to completely revamp our Cloud WordPress Hosting products to enhance their features and performance. Additionally, we aim to introduce specific hosting packages tailored for popular open-source platforms like Magento and WooCommerce. These specialized packages will be packed with features designed to optimize and support these platforms, providing even greater value to our customers.

Łukasz Gawior: Which of HostArmada’s services are most popular and why?

Simeon Mitev: The most popular services at HostArmada are our Managed Cloud Shared Hosting and Managed Cloud WordPress Hosting. These products are highly sought after due to their affordability and exceptional value. Customers appreciate the enhanced support and proven performance provided by our meticulously crafted and optimized shared hosting environment. These factors make our Managed Cloud Shared Hosting and Managed Cloud WordPress Hosting the go-to choices for individuals and businesses seeking reliable and cost-effective web hosting solutions.

Łukasz Gawior: From your perspective, how has the hosting market changed since HostArmada was founded?

Simeon Mitev: The onset of COVID-19 drastically altered the landscape. Initially, we anticipated a challenging period, but the lockdowns unexpectedly led to a surge in sales as businesses and individuals moved online. However, this boom was followed by a recession and significant inflation, which reduced the demand for web hosting services. The economic downturn presented challenges as many potential customers tightened their budgets. Currently, the market is gradually recovering, showing signs of renewed growth and stability. Overall, the hosting market has had its ups and downs, reflecting broader economic trends and the evolving needs of our customers.

Łukasz Gawior: What are the key trends and changes you are seeing in the hosting industry?

Simeon Mitev: While there haven’t been many entirely new trends, we’ve observed web hosting companies testing new pricing models and shifting their focus toward Managed WordPress hosting products. This shift underscores the increasing demand for specialized and managed services that offer ease of use and optimized performance for WordPress sites. Consistent trends remain in the widespread adoption of NGINX and LiteSpeed web servers. These web servers have become almost industry standards due to their ability to deliver fast and reliable web hosting, which is crucial for maintaining high performance and user satisfaction. Overall, the industry continues to evolve, with companies seeking innovative ways to meet customer needs while maintaining high standards of speed and reliability.

Łukasz Gawior: What challenges do you see for hosting companies in the coming years?

Simeon Mitev: One of the biggest challenges we foresee for hosting companies in the coming years is financial. The rising costs of infrastructure, software licenses, and inflation will likely force the market to either increase prices or lower quality. Striking the right balance between affordability and high-quality service will be crucial. Another significant challenge is retaining the customer base amidst these financial pressures. Many customers switch hosting providers due to high renewal costs, which can undermine the personal connections we strive to build. Developing new pricing models that offer both value and sustainability will be essential. The company that successfully innovates in this area will gain a substantial competitive edge. These financial and customer retention challenges will require strategic planning and adaptability to navigate effectively.

Łukasz Gawior: Can you tell us what it is like to work with affiliates at your company?

Simeon Mitev: Working with affiliates at HostArmada is a highly collaborative and rewarding experience. We view our affiliates as integral partners in our growth and success. Our approach is built on transparency, mutual trust, and ongoing support. We provide our affiliates with real-time tracking tools and a dedicated affiliate manager who is always ready to assist with any queries or challenges. This creates a dynamic environment where affiliates can thrive, and we can collectively achieve our business goals. Moreover, we regularly seek feedback from our affiliates to continuously improve our program, ensuring it remains competitive and beneficial for everyone involved.

Łukasz Gawior: What are the standard rates for customer acquisition through affiliate programmes in the hosting industry?

Simeon Mitev: In the hosting industry, the standard rates for customer acquisition through affiliate programs can vary significantly based on the company and the specific terms of the program. Generally, commission rates range from $50 to $300 or more. At HostArmada, we strive to offer competitive and attractive rates to our affiliates, reflecting the value they bring to our business. Our program offers retroactive commissions that are among the best in the industry, which helps us attract and retain top-performing affiliates.

Łukasz Gawior: How do you assess the profitability of affiliate programmes for HostArmada?

Simeon Mitev: Assessing the profitability of our affiliate programs involves a comprehensive analysis of several key metrics. We look at the customer acquisition cost (CAC) through affiliates and compare it to the lifetime value (LTV) of the customers they bring in. By monitoring conversion rates, churn rates, and the overall return on investment (ROI), we can determine the effectiveness of our affiliate partnerships. This enables us to identify and reward the highest performers. The data-driven approach ensures that our affiliate program is not only profitable but also scalable and sustainable.

Łukasz Gawior: What strategies do you employ to maintain long-term affiliate partnerships?

Simeon Mitev: Maintaining long-term affiliate partnerships is crucial to our success at HostArmada. We focus on building strong, personal relationships with our affiliates. This involves regular communication, providing timely support, and recognizing their contributions. We also offer competitive commissions and incentives to motivate and reward our affiliates consistently. We encourage feedback and implement suggestions from our affiliates, fostering a collaborative environment where they feel valued and heard. This really helps us maintain long-lasting and fruitful partnerships with our affiliates.

Łukasz Gawior: What technological innovations do you plan to introduce in the near future?

Simeon Mitev: We plan to enhance our existing web hosting products by increasing the value they offer to our customers. A major focus will be on completely revamping our Managed WordPress hosting solutions to provide even greater performance and ease of use. In addition, we aim to introduce specialized web hosting plans tailored for other open-source platforms like Magento and WooCommerce. These plans will be optimized to meet the specific needs of these platforms, offering specialized features and improved performance. Our goal is to ensure that our customers have access to the best possible hosting solutions for their specific requirements, driving both their success and ours.

Łukasz Gawior: What are HostArmada’s long-term goals and visions for growth?

Simeon Mitev: HostArmada’s long-term goals and vision for growth revolve around three key areas: customer acquisition, service improvements, and the introduction of new services. We aim to continue expanding our customer base by leveraging existing or new marketing ideas and continuing our efforts to build strong relationships with our clients. Continuous service improvement is at the heart of our strategy. We are committed to enhancing our existing offerings to ensure they meet the highest standards of performance, security, and reliability. This includes upgrading infrastructure, adopting new technologies, and refining our support processes to provide exceptional customer experiences. Finally, we plan to diversify our portfolio by introducing new services. This includes developing specialized hosting solutions for popular platforms like WordPress, Magento, and WooCommerce. By expanding our range of services, we aim to cater to a broader audience and address the evolving needs of our customers.

Łukasz Gawior: What do you consider to be HostArmada’s biggest success to date?

Simeon Mitev: HostArmada’s biggest success to date can be measured by our exceptional customer acquisition and revenue growth. We’ve consistently exceeded our expectations for the number of customers acquired, demonstrating the strong appeal and reliability of our services. This growing customer base has translated into a robust revenue stream, which in turn has allowed us to sustain consistent growth. Our ability to attract and retain a large number of satisfied customers while maintaining healthy financial performance is a testament to the effectiveness of our strategies and the quality of our offerings. This success lays a strong foundation for our continued expansion and innovation in the web hosting industry.

Łukasz Gawior: What advice could you give to young entrepreneurs starting out in the hosting industry?

Simeon Mitev: Starting out in the web hosting industry, thorough research and building a trustworthy team is crucial. Understanding the market landscape, identifying niche opportunities, and staying updated with the latest technological trends will give you a competitive edge. Equally important is assembling a reliable and skilled team. Your team’s expertise and dedication will be instrumental in navigating challenges and driving your business forward. Trust and collaboration within your team will foster innovation and resilience, essential qualities for success in the dynamic hosting industry.

Łukasz Gawior: You are from Bulgaria. Personally, it surprises me how many companies in the hosting industry just from your country are successful. What makes Bulgaria, despite its small size, the birthplace of so many successful hosting companies?

Simeon Mitev: Bulgaria’s prominence in the hosting industry can be traced back to a deep-rooted tradition in technology and innovation. Interestingly, John Atanasoff, the father of the first electronic digital computer, was of Bulgarian origin, highlighting a historical connection to technological advancement. In recent years, Bulgaria has seen a robust and growing digital landscape. For the past 15 years, the IT sector has become one of the most desirable and dynamic fields in the country. The web hosting industry, in particular, offers a great entry point for young, ambitious individuals eager to succeed. This combination of a historical affinity for technology, a strong modern IT sector, and a culture that fosters innovation and ambition has made Bulgaria a fertile ground for successful hosting companies.

Łukasz Gawior: Is there a Bulgarian hosting community that supports the development of hosting and technology companies?

Simeon Mitev: Currently, there is no formal Bulgarian hosting community specifically dedicated to supporting the development of hosting and technology companies. Most successful web hosting companies in Bulgaria are founded by individuals who have gained their expertise and industry know-how from previous roles in other hosting companies. This hands-on experience and transfer of knowledge have been pivotal in driving the growth and success of new ventures within the industry.

Personal note

In conclusion, my conversation with Simeon Mitev, CEO of HostArmada, provided deep insights into the web hosting industry. From the company’s resilient beginnings and strategic partnerships to its innovative technological advancements and robust affiliate programs, HostArmada stands out as a formidable player in the market. Simeon’s candid and detailed responses shed light on the practical steps and strategic decisions that propelled HostArmada to succeed.

For budding entrepreneurs and established businesses alike, Simeon’s experiences and advice offer valuable lessons on navigating the complexities of the hosting industry, maintaining competitive advantages, and fostering long-term partnerships. HostArmada’s journey is a testament to the power of product vision.

I am confident that this interview will serve as a valuable resource for anyone interested in the dynamics of the web hosting market and the strategies that drive sustained growth and success.

Thank you, Simeon, for sharing your story and insights with our readers.

The post Navigating success in the hosting industry: An Interview with Simeon Mitev, CEO of HostArmada.com appeared first on webhosting.today.

webhosting.today: Why have you decided to make an event for domains in the Middle East region? What are the problems that you tried to solve with this event?

Munir Badr: I decided to create Domain Days Dubai to address the gap in the market and respond to the growing interest and need for domain-related knowledge and networking in the Middle East region. The domain and hosting industry here has undergone significant changes, with many large players establishing a permanent presence alongside local brands engaged in healthy competition. Despite these developments, there remains a significant gap in terms of education, awareness, and professional networking.

By organizing this event, we aim to bring together industry experts, businesses, and enthusiasts to discuss trends, share knowledge, and foster connections. Our goal is to address issues related to lack of information, limited networking opportunities, and to promote best practices in domain management and online presence.

Additionally, many people from this region face challenges traveling to Europe and the US due to visa requirements. The UAE, and specifically Dubai, is an ideal venue for such an event, serving as a bridge between the Arab World, the Middle East, Africa, and Asia. Dubai is a global hub, with direct flights to over 100 destinations, and offers fantastic shopping, dining, and year-round resort experiences. Need more reasons?

webhosting.today: What are the current challenges in that region in terms of the domains and web hosting market?

Munir Badr: The MENA region encounters several challenges in the domains and web hosting market. These challenges include limited awareness about the significance of domains and web hosting, a relatively small market size compared to other regions, and a lack of local expertise in some countries. Additionally, regulatory issues and the need for improved infrastructure, such as local hosting options, present obstacles. There is also a need to educate businesses on the benefits of a strong online presence and its impact on their growth and success. While ecommerce and social media usage are on the rise, the adoption of local domains, hosting on local servers, and creating local content remains an area needing further attention.

webhosting.today: What were the biggest difficulties for you to create an event like that?

Munir Badr: Let’s begin with the fact that this is the first event I have ever organized. While I have attended and spoken at many events, curating an event from start to finish is a completely different challenge. Adding to this, my time is extremely limited due to my full-time role as the CEO of AEserver, one of the largest providers in the region. One of the biggest challenges was securing the right speakers and partners who could provide valuable insights and attract attendees. Another difficulty was ensuring that the event would meet the diverse needs of the participants, ranging from beginners to industry veterans. Logistics, such as finding a suitable venue, managing registrations, and coordinating schedules, also posed significant challenges. However, the most critical aspect was establishing credibility and generating interest in a region where such events are still relatively new.

At the beginning, I had verbal commitments from a few partners with whom I had spoken, while others understood that there were certain risks in supporting a brand new event in a totally new region. I was very transparent with all our partners that we would all share the risk, both financial and reputational. This is why I want to say a special thanks to our founding sponsors, particularly it.com Domains, who was our title sponsor and supported us from the start. As preparations progressed, there was a significant influx of other partners who didn’t want to miss out on a show that was rapidly gaining momentum. Finally, the fear of missing out (FOMO) played a positive role, and many last-minute partners signed up. The rest is history!

webhosting.today: Tell us about your team. How many people are involved in the organization?

Munir Badr: In the beginning, our team was just me! Then, I met a sponsor who mentioned a well-known event professional available for contract work. That’s how I met Jason Nickerson, who is now our CMO. His timely arrival was a great relief, and our partnership has been very successful. Soon after, I enlisted our local co-host, the Dubai Blockchain Center, led by its founder and CEO, Dr. Marwan Alzarouni. Dr. Marwan, a long-time domain investor and a good friend and client of mine, has been a fantastic addition to our team. I also received support from my core business at AEserver, with some team members helping with operational tasks. Altogether, four people were actively involved in the event preparations. Additionally, we hired a local event agency to assist with onsite preparations and management.

I must also confess that I received valuable advice and tips from many friends and contacts in the industry. Their support and guidance were crucial, helping me gain confidence and persevere. Overall, I want to acknowledge the entire community for helping build this event, from speakers to sponsors to advisors to friends and family. It was a true team effort with many unsung heroes working in the background. Thank you all!

webhosting.today: What was the reception of the first edition?

Munir Badr: The inaugural edition of Domain Days Dubai was met with great enthusiasm and positive feedback. Attendees praised the high-quality content, networking opportunities, and the chance to learn from industry leaders. Social media was buzzing with updates and photos from the event, and many who traveled to Dubai for the first time were captivated by the city’s beauty and hospitality. The highlight of the event was undoubtedly the EPIC after party, where we took over one of the largest yachts in Dubai for four hours, making headlines in both local and international industry coverage. The positive feedback on social media, especially on LinkedIn, and the widespread sharing of photos and videos from the event, are solid proof that it was a total success. Our post-event survey showed a strong demand for another edition!

webhosting.today: Any anecdotes?

Munir Badr: Actually a few:

What I enjoyed the most about Domain Days was not only were there lots of familiar faces, but I also met serious players from other parts of the world that don’t normally make it to US-based domain conferences. After the first event, it became a must-attend conference – Braden Pollock, CEO – Legal Brand Domains

The range and depth of the presentations as well as the contacts into the Domain Investor community in the Arab Emirates were outstanding. Munir Badr delivered what he promised and the “Dubai Domain Days” was probably the best-organized conference I have had the pleasure of attending – Christian Voss – CMO – Sedo.com

The domain name industry in the MENA region continues to have potential for growth and development. Events such as Domain Days MENA not only contribute to this growth and development, but also provide a good platform for ICANN to engage with industry players; both globally and locally, and discuss our key initiatives and projects. Fahd Batayneh – Stakeholder Engagement Director, Middle East – ICANN

webhosting.today: From your declarations, it seems that you plan to have the second edition this year in November. Tell us more about your plans and how the event will change compared to the first edition.

Munir Badr: Yes, we already announced the second edition of Domain Days Dubai, scheduled for November 5-6 this year. Based on the feedback from the first edition, we plan to introduce more interactive sessions, workshops, and panel discussions to provide hands-on learning experiences. We are also expanding our speaker lineup to include more international experts and industry leaders. Additionally, we aim to incorporate more networking opportunities, allowing attendees to connect more effectively with peers and potential collaborators. We expect north of 250+ attendees this year and much more deals happening on the event floor. Our early bird ticket sale is currently on and this is the best value for money.

webhosting.today: What are your long-term plans for the event?

Munir Badr: My long-term vision for Domain Days Dubai is to establish it as the premier domain and web hosting conference in the Middle East & Africa region. We aim to grow the event year by year, increasing the number of participants, speakers, and partners. Our goal is to foster a strong community of domain professionals and enthusiasts in the region, driving innovation and growth in the industry. We also plan to introduce regional chapters and take the event to different cities with the help of local hosts to maintain engagement and support continuous learning and networking.

The post Interview with Munir Badr, Founder of Domain Days Dubai appeared first on webhosting.today.