You seem like you've had impressive success in raising
capital, particularly in today's tough economic times. How do you do it?
Success breeds success. Raising money is directly related
to how successful your business is and whether or not you have a lasting
competitive advantage. If you focus on the fundamentals of building a lasting
business supported by real competitive advantage you will have no trouble
raising money even in an investor shunned sector like shared hosting.
Our ability to raise $8 million plus is a direct result of
the above factors and the fact that we have grown from zero to the Top 2
wholesale providers in the industry in less than 5 years.
What prominent hosting companies are currently outsourcing
through Hostopia? (if you're allowed to name any)
We have over 270 wholesale partners worldwide and because
we are a private label provider, we prefer not to reveal who our partners are.
We respect and protect their identity as strictly as possible to ensure that
Hostopia is in fact completely invisible to the end user. However, I can mention
that we do business with Register.com, Telus (a subsidiary of Verizon and the
2nd largest telco in Canada), Bell Canada, USLEC and many others. In addition we
have partnerships with other large Telco's, Cableco's, and Domain Registrars who
are leaders in their industry.
What are among the first things you do when you turn on
I review the number of orders we received the day before.
I like knowing exactly how our business is doing at every point in time.
You have a very distinctly green brand. Any reason why you
Green has always been the color of money and profit in my
mind and I couldn’t think of a better color to represent the value we bring to
our partners. Green is all about growth and that’s what we bring to our
partners. The organic growth rate for most hosting companies has stalled, just
look at Interland, yet our partners are growing at a 40% plus annual rate based
upon our audited numbers. Besides I always liked green.
What are the advantages to being headquartered in Ft.
Low taxes. Low cost of doing business from an operating
standpoint and very low travel costs.
The Terremark facility, the NAP of the Americas, is also
one of the finest IDC’s in the world today and our customers deserve the best.
Where do you see the hosting industry moving in the next
few years? Do you think the number of companies in this industry will greatly
reduce (being acquired by Interland for instance), or do you think smaller
hosting companies will still have a competitive edge in the market?
The hosting industry will continue to expand at a much
faster rate than the underlying economy. We are in the beginning phases of the
shift from the early adopter market to the mainstream buyers. This literally
represents 20 million plus Small and Medium sized businesses that will be coming
online over the next 10 years. The growth in this industry will be awesome.
The challenge to capturing a leading position in this
market is that doing it by trying to build a worldwide retail brand is an
incredibly expensive proposition as Interland and Verio have learned. The
enduser wants to buy from someone they trust and the person they trust the most
will likely be the person that they buy their Internet services from. This is
why we believe that the number of providers is only going to increase as demand
drives more companies like Telcos, ISP’s, and Cableco’s into the hosting
My favorite saying to describe our wholesale model is
“Sell them in bunches like bananas”. When we make one sale we actually get
access to thousands of customers in a very cost-effective
Where do you see Hostopia and yourself 5-10 years down the
Hostopia’s vision is to provide all of the technology and
services to enable a Small and Medium sized enterprise to create and manage a
world-class online presence. Hostopia is an ASP and our ability to serve this
market is only limited by the imagination of our customers and ourselves.
Where this leads to 5 years from now is anyone’s guess but
I can say with complete assurance that we will be there leading the way for our
partners. I love this business and as long as I can make a difference I will be