When Phil Spencer joined the Web hosting company Aplus .net last year, he took a hard look at the best opportunities for growth.
“The shared hosting part of our business was flat,” said Spencer, chief executive officer of the Overland Park company. “What really jumped out at me was the fact that our dedicated business was growing month to month and steadily adding more customers.”
Based on that information, the 156-employee company recently launched Codero, a business focused solely on dedicated and managed hosting services for small to midsized businesses.
It also is selling its shared hosting service to Fort Lauderdale, Fla.-based Hostopia, the Web services division of Deluxe Corp. The deal is expected to close Friday.
“It’s a testament to our employees and reputation that we were able to get a deal done despite the horrible financial markets,” Spencer said.
Hostopia is acquiring Aplus.net’s 85,000 shared hosting customers. Codero retains 6,000 dedicated customers.
Ryan Elledge, chief operating officer for Codero, said Monday that about 100 employees ultimately will remain with Codero. Eight employees have been offered local positions with Hostopia, he said, with more job offers likely to come.
“The rest will stay with us through a phased transition,” Elledge said, adding that there will be no impact for 60 days. He expected the transition to be complete by December.
Spencer said change to Codero made sense.
“The shared hosting business is highly competitive, with hundreds of providers, such as Go Daddy. But the dedicated server business is growing as more businesses feel comfortable farming it out to secure data centers such as ours,” he said.
Businesses with a dedicated hosting service have access to the resources of an entire server, without sharing it with another customer. This gives them more flexibility, as well as full control over such issues as root access, choice of operating system and hardware upgrades. Codero offers both Windows and Linux servers in secure data centers, with round-the-clock domestic support.
This type of service appeals to many small businesses as an option to shared or in-house servers, Spencer said. In a tight economy, it also enables businesses to redeploy resources from information technology to other pressing areas.
He said the Codero launch means simplified account management, additional billing options and enhanced product selection, including unmetered bandwidth.
Codero, with customers in all 50 states, markets itself online and through an internal sales staff.
The Star’s Donna Vestal contributed to this report.
“The shared hosting part of our business was flat,” said Spencer, chief executive officer of the Overland Park company. “What really jumped out at me was the fact that our dedicated business was growing month to month and steadily adding more customers.”
Based on that information, the 156-employee company recently launched Codero, a business focused solely on dedicated and managed hosting services for small to midsized businesses.
It also is selling its shared hosting service to Fort Lauderdale, Fla.-based Hostopia, the Web services division of Deluxe Corp. The deal is expected to close Friday.
“It’s a testament to our employees and reputation that we were able to get a deal done despite the horrible financial markets,” Spencer said.
Hostopia is acquiring Aplus.net’s 85,000 shared hosting customers. Codero retains 6,000 dedicated customers.
Ryan Elledge, chief operating officer for Codero, said Monday that about 100 employees ultimately will remain with Codero. Eight employees have been offered local positions with Hostopia, he said, with more job offers likely to come.
“The rest will stay with us through a phased transition,” Elledge said, adding that there will be no impact for 60 days. He expected the transition to be complete by December.
Spencer said change to Codero made sense.
“The shared hosting business is highly competitive, with hundreds of providers, such as Go Daddy. But the dedicated server business is growing as more businesses feel comfortable farming it out to secure data centers such as ours,” he said.
Businesses with a dedicated hosting service have access to the resources of an entire server, without sharing it with another customer. This gives them more flexibility, as well as full control over such issues as root access, choice of operating system and hardware upgrades. Codero offers both Windows and Linux servers in secure data centers, with round-the-clock domestic support.
This type of service appeals to many small businesses as an option to shared or in-house servers, Spencer said. In a tight economy, it also enables businesses to redeploy resources from information technology to other pressing areas.
He said the Codero launch means simplified account management, additional billing options and enhanced product selection, including unmetered bandwidth.
Codero, with customers in all 50 states, markets itself online and through an internal sales staff.
The Star’s Donna Vestal contributed to this report.
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