I feel like I should be writing this article for a recap at the end of the year rather than in the middle, but where we are heading is clear to me. In all corners of the tech industry, companies are merging. But this year it seems that the most notable combinations have better reasons than those before them - usually. To begin, we learned in April that Layered Technologies acquired Fastservers. The reason for this venture was described by John Pozadzides, Chief Marketing Officer and Vice President of LT.
"We're really big in the individual unmanaged servers, and we're really big in the grid hosting space. And that leaves this little sweet spot right in the middle for the managed server offerings, which is the only thing that Fastservers does. So when you put the two companies, that's why it's such a beautiful fit for us."
Larger companies are actively seeking specific value to add into their existing offerings. Unlike hosting mergers of the past, the most recent mergers are not for the sole purpose of gobbling up more numbers. Those other deals (think of the ones in 2007) make you ask, "Was it a merger or simply a purchase?" Icing can be layered on but doesn't change the cake inside.
The next tech mix that caught many of us by surprise was the scoop of Ars Technica by Condé Nast Publications. All of us are familiar with the excellent quality of Ars content and didn't imagine they would blend with any other company. Apparently they are on the climb for more readers and more contributions. Ars stated their reason as this below.
"Once we realized that an acquisition would be the quickest way to accelerate the growth of Ars, the question turned to who the best possible partner could be. Respect for our community and our stewardship of the website was of utmost importance, and Condé Nast could offer both.
Just as important, Condé Nast is privately owned, unquestionably strong, and has a very solid reputation for respecting and fostering talent. We wanted to be somewhere corporate leadership would "get it," somewhere the next fiscal quarter isn't more important than the long term, and somewhere with a proven track record of fostering smaller businesses."
The two mergers I have mentioned so far have a clear basis of providing a better, smarter service while expanding at the same time. This idea brings me to the latest question on the tipping scales this week: the surprise which combined efforts between ThePlanet and TouchSupport. In press releases, TouchSupport has mainly been described as a provider of server administration and management. While they do offer such services, what is instead most important about TouchSupport is that they provide technical support to many hosting companies, who may or may not have services with ThePlanet. You can imagine the complexities of the feelings on this merger. Instead of acquiring their services, ThePlanet instead acquired the company itself.
"At The Planet, we are interested in extending our Advanced Services portfolio, and the services Touch Support provides its customers are precisely the kinds of offerings our customers are requesting. We evaluated a number of companies, and Touch Support was identified as the ideal company to help us jump start these services for our dedicated hosting customers and to grow that segment of our business. As we see it, it's an ideal fit for both companies and for our customers."
What does all of this movement mean for the rest of the year and years ahead? Hopefully you have a very solid idea of where your company stands and how you will navigate its growth. There are always options but never choose swiftly. And companies you rely on for information or support may change their own directions, therefore causing a few detours on your map of success. Stay subscribed to publications like theWHIR for the latest news and predictions.
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