Wachovia Capital Partners (WCP) acquired HostMySite at the beginning of June last year with the goal of building a leading managed hosting company. With the acquisition of Hosting.com today, that deal is sealed.
In what is arguably the most significant web hosting acquisition this year (so far), HostMysite will expand its talent base to nearly 370 employees in total and combined revenues are expected to hit the $50 million dollar mark.
In a letter to HostMySite customers this morning, CEO of HostMySite, Art Zeile said: "Our vision is to become the preeminent national platform for the delivery of managed services, colocation, dedicated servers and virtualized application services. Prior to this acquisition we received many requests from customers who were interested in managed colocation, high availability and business continuity/disaster recovery (BCDR) solutions. Our single datacenter in Newark, DE limited our ability to respond to these needs."
What hasn't been reported is the significant potential in the cloud hosting realm. The company will now manage 43,000 square feet of data center space (up from 18,000 square feet) in four facilities including Irvine, CA, San Francisco, CA, Louisville, KY and of course, Newark, DE. Both companies have a presence in cloud hosting already, namely, HostMySite’s VMware-based Enterprise Elastic Computing solution and Hosting.com's CloudNine solution. Incidentally, CloudNine, was available as a free trial following the launch of VMware vSphere 4 just a few weeks ago. Was this the last hurdle in a process that began in September 2008?
It's probably safe to say we'll see some robust revenue generation from the cloud stream. It sure looks like the ball is in flight, in fair territory and I'd wager this one is headed out of the park.
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