Yes, you read the title right, and although it has happened a while back, the acquisition of Hostgator by EIG is still an important bit of tech news, not for any other reason but because it has given rise to speculation about whether it is safe to use Hostgator as a hosting site. Now that it is in different hands. But before we explore that issue; a little background.
EIG or Endurance International Group, which has a pretty clear history of acquiring web hosting companies, offered about $225 million to the folks at Hostgator – we speak of course of Brent Oxley who was the Hostgator CEO.
Hostgator CEO, Brent Oxley Decision
Brent Oxley clearly decided this was a great offer and sold the popular web hosting site away. Much to the disturbance of several people who worried whether they may suffer now that the company changed hands.
The move led to a lot of speculation over online forums and blogs by concerned site makers and people started to back up their information – very wisely – to be on the safe side, anticipating problems, and waiting to watch what would happen.
In the meantime several people also started looking for alternatives to move their information to other web hosting companies.
EIG CEO, Hari Ravichandran Announcement
But EIG CEO, Hari Ravichandran, made an announcement that the core team of Hostgator would remain with the company. Which makes sense of course because, why ought do they try to reinvent the wheel when everything was going right with the company anyway?
In any case, this obviously allayed some fears with people about the safety of their content with Hostgator. Hostgator apparently has 4 million users and obviously no one wants to wreck that, not to mention mess with the bandwidth and domain and emails that Hostgator gives.
Hostgator has also been known to provide great tech assistance, so it is clear why people were concerned with this move, and why Mr. Ravichandran was quick to allay their fears.
But how safe is Hostgator now? That is the question
As it turns out, Hostgator is Safe Harbor certified, so there is little cause for worry. What people need to be concerned about is the change in pricing strategy which EIG will undoubtedly think of.
It is unlikely that EIG will mess around with many core elements of Hostgator, but the fact that it has spent $225 million means it must acquire it back soon from the activities of Hostgator, if not for profits than for break-even.
How this pans out and how quickly that occurs is a thing we must wait for, but either way it is likely to affect the customers. If the quality continues to be as great as it has been, or even better, then people are unlikely to complain.
But Hostgator was so good to begin with; it is difficult to see how it can be improved upon!