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GoDaddy Kills Off Its AWS Competing Cloud Server Business

godaddy cloudservers 

Much like virtualization giant VMware found out, GoDaddy may have learned a similar lesson that it may be harder than first expected to compete with the likes of an "online bookstore" that is Amazon.

The Website hosting company announced that it has decided to end its Amazon competing cloud computing business which they unveiled back on March of 2016.

GoDaddy Cloud Servers were intended to be an easy on-ramp to the cloud, providing customers and small businesses with an alternative to the larger cloud vendors such as Google and Amazon.  GoDaddy's service also benefited from a partnership with Bitnami to provide a simple way for users to install from a library of more than 140 applications to the cloud servers hosted with GoDaddy.  Unfortunately for them, the same partnership was also had by Amazon, so there was no differentiation there.  

That particular service from Bitnami will stop being supported by GoDaddy on November 15th of this year.  And the Cloud Servers business is set to shut down shortly after on December 31st.

TechCrunch initially reported the planned closure of the cloud service after receiving a forwarded memo that was sent to users by GoDaddy.  Raghu Murthi, SVP of Hosting at GoDaddy, later confirmed the news in an official statement, saying:

"After serious consideration, we have decided to end-of-life our cloud servers' product. Our goal from the beginning was to create simple and scalable services for small and medium business owners.  We're proud of what we built and now we are focusing on building a robust and scalable solutions based on OpenStack infrastructure.  GoDaddy Cloud Servers provided numerous learnings for us that we've already been applying to other products and services."

The Website hosting company said it wants to continue using the OpenStack software, but how it plans to do so remains unclear.

Exiting the business is one thing.  But GoDaddy still needs to find a way in 2017 and beyond to effectively offer something to the growing number of people moving away from the traditional Website hosting services to the AWS model of cloud hosting services.  Perhaps one of those ways is to acquire and provide more services that help ease the day-to-day operations and provide solutions that are customized to address the needs of small businesses.  

Recent acquisitions by GoDaddy that fit that bill include security services from Sucuri Inc. which enables customers to secure Websites without being security experts; ManageWP and WP Curve which provide users with a simplified way of administering Websites built on the popular WordPress platform; and FreedomVoice which offers multiple cloud-based communications products designed specifically for SMBs.

Published Friday, July 21, 2017 3:54 PM by David Marshall
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