Is it just balancing the books, or is it the beginning of the end...
In March 2018 Amazon Web Services (AWS) announced, that one of the biggest hosting providers, GoDaddy, decided to move its services to the AWS infrastructure.
And for many, it's no surprise.
To say that the business of web hosting is ruthless would be a complete understatement. With clients looking for the combination of lowest prices, best interface, most helpful support and of course, superior performance, many fail to deliver and come crashing down.
GoDaddy, being the leader of the web hosting industry, is also on the way to offer the best possible services and keep the revenues high. So, what can end-users taking advantage of GoDaddy's services look out for during this switch? Let's have a look.
Amazon Is Taking Over GoDaddy
In the news that broke yesterday, it was announced that the American web services giant, GoDaddy, is moving most of its infrastructure to Amazon Web Services. Previously, competitors, the two companies will now effectively merge their resources - that is GoDaddy's millions of paying clients and Amazon's vast server network.
GoDaddy is going all-in on AWS, migrating the vast majority of its infrastructure as part of a multi-year transition
GoDaddy Official Press Release
The multi-year deal won't only be about the resources. Amazon will become a partner in selling GoCentral website builder and WordPress hosting services. In case you need a refresher - Amazon is seriously good at selling things and keeping its clients happy and paying.
So one could argue that this move may prove to be an absolute masterstroke for both companies, increasing sales and the number of users.
In the official statement made by Amazon, you could also see the opportunities for improvement. That includes machine learning, analytics, databases and containers currently employed by Amazon - all that could be used to improve the service quality for users all around the world.
(AWS services will help) to innovate faster than ever before and to meet the needs of its customer growth around the world.
Amazon Official Press Release
The recent move will affect the web hosting users, as their websites will now be stored on the Amazon servers - no changes will happen to the domain owners, as all 75 million (and counting) domains will still belong to GoDaddy. This move thoroughly underlines their future goals, as it clearly shows intent to be first and foremost, a domain registrar.
"Domain management is obviously a core business for GoDaddy"
Dan Race, VP of communications, GoDaddy.
There is no available information as to how much this merger cost, but it's clear that this is going to start an interesting chapter in GoDaddy's future. The company is not "getting rid" of web hosting per se, as there's no reason to think it currently would.
However, moving the servers away to Amazon Web Services makes GoDaddy strongly dependable on everything the other company is doing. Perhaps there is a lot of trust that Amazon could maintain and improve the servers in a far better way than GoDaddy would, therefore it was beneficial to make a move.
GoDaddy Is Trying To Keep Up
This whole ordeal is actually not the first time we have seen GoDaddy steer away from web hosting. Previously launching an ambitious cloud hosting platform suited for small businesses, in the summer of 2017, GoDaddy decided to stop it almost immediately.
Instead, the focus was put on alternative services.
Was that done solely to guarantee the best service quality for the customers or is it just a realization that it's getting more and more difficult to maintain a profitable business in web hosting:
No matter what the reasoning is, one thing is crystal clear: GoDaddy is balancing the books to maintain its position in this ruthless business. And the move of this giant was to trust Amazon - which now gains a serious user base to work with.
GoDaddy Users Are Safe
This GoDaddy and Amazon merger isn't something that will come to effect overnight. It is in the best interest of both companies to make the switch as seamless as possible. After all, people getting worried and jumping ship can only be a bad thing!
Even more so, these things take time. No one really expects massive changes to happen this Spring or even this year. Experts of all kinds will do their best to make this take place.
However, one can't really recommend tying up to GoDaddy for the long-term right about now. The company famously offers plans up to 10 years and while they may appear to be interesting, you could do better.
As this example shows, a lot can change. With a volatile company such as GoDaddy, it's best to keep a little bit of flexibility because you never know what will change. We will keep an eye out though!
We should also bear in mind that since this is simply a switch in server location, from GoDaddy's own, to AWS', there shouldn't be any large-scale issues as far as the switch is concerned.
In our web hosting reviews, we look at a lot of providers and keep a close look at how they perform and change over time. Some companies have already been caught for slowing down and if something happens here, we will be the first ones to report.
Update 2019: After some errors back in mid-2018 that included leaked company information, GoDaddy continues the merger of services successfully. In June 2019 Amazon Web Services announced further integration. Now, GoDaddy users can use Amazon Lightsail for the easy management of multiple WordPress websites through the Lightsail console.
For now, however, we can only wait and see. This merger is a seriously interesting one and the world of hosting is waiting to see the outcome.