Atlantic.Net Sees a Lot of Prospects for Growth in Hosting

2017-06-09 17:06 Posted by: Jennifer in , , , Go to Comment

Florida-based company Atlantic.Net has had its ups and downs in the recent past. The company has modified its services and tried to keep up with the market demand of its customers. Atlantic.Net has stood strong against the hard-hitting waves of the always changing market for 24 long years. Back in 2011, the company had set up their own cloud platform which closed down because of financial problems. But now the company offers HIPAA complaint hosting, cloud hosting and dedicated servers to small and mid-sized businesses from data centres bases in Dallas, Orlando, Toronto, New York, San Fransisco and London.

The founder and CEO of Atlantic.Net, Marty Purnnik recalls in one of the conversations the early years of the company before 2008 when customers wanted to go from Capital Expenditure to everything being Operational Expenditure. Back then customer did not want to take the risk of long term leases which they may not have a need for.

There was no CloudStack or OpenStack, he says, everything had to be done by them which also included the billing system which was put in place for the on-going demand for cloud computing. Before cloud computing customers had monthly plans and paid their bills every month on a fixed rate hence there was a commercial billing system that they followed. However, with this product, they had to develop a new billing interface where time and cost per hour could be traced so people could be billed on demand. 

The biggest change which Purnanik says he has noticed is a drift from the approach of one size that is perfect for everyone in cloud computing. There are several options now and cloud computing is becoming more flexible where every cloud has a different set of features and a different size; a size which doesn’t simply fit everyone. Pricing models also differ. 

Although Amazon Web Services has been showing an impressive growth in this area it still faces competition from Microsoft and Google. Every company has competitors and the pressure to survive certainly exists. Oracle is working hard to more its existing customers to cloud and Google already has some big names like Snap that have moved to cloud.

There are many more alliances that will happen in hosting soon when the rate of growth stoops consolidations happen. There might be a consolidation at Atlantic.Net but for now, they are at a fast growth clip, said Puranik.

Even if there may be chances of a consolidation, there are many more years before we can see one. For now, the situation is quite different companies are trying to get their hold on the market and take their lead while they can and while the market share is cheap. After which there will be shrewd bargaining when everyone has taken their share.

The way the market is evolving there are some hosting providers that will be left behind if they don’t change along with the changes of the market. There will be no consolidations if you don’t have a business model which people are willing to buy or in contrast to this a legacy business model which doesn’t fit into the newly evolved environment, Puranik added.

Puranik gives an example of Rackspace that became a private company back in November 2016 after having traded for 8 years in the public market. Even though this isn’t a consolidation but it is an understanding that in order to strive the present cloud conditions continuous assessing of business models and offering new and exciting products to the customers is compulsory.  

He thinks there are immense opportunities in developing industries outside the United States, something which hosting providers such as GoDaddy are already pursuing. Prospects of growth are still there in United States but when compared to the GDP of frontier markets such as Africa, the companies are growing more rapidly than those based in the developed nations.

The rise of smartphones throughout the world has led to investments in the back-end and cloud that would be operating it. There are security concerns which do come up in this type of infrastructure. We develop new and better technologies to defend us from these online threats but how and why these technologies are being used in a way to harm others should also a thought to be pondered over. 

If your clients want something you ensure that you are giving them something which has integrity. This integrity is what Atlantic.Net has worked on in their 24 years of business as they strive to have more SMB customers who do care about the performance and the cost but they also intend to know whether or not Altantic.Net is a company that will always be around and if there is a problem that comes up someone will fix it for them, said the confident looking CEO of Atlantic.Net. 

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