There are thousands of web hosts, including those specializing in virtual private server/VPS hosting, in North America. From tiny boutiques to major enterprises like HostGator, it seems like everyone is getting in on the web hosting cash cow. Equity groups have an eye on this highly profitable industry, and are slowly acquiring some of the most promising of web hosts. Most recently, Cloud Equity Group, based in New York City, had their eyes on Virpus, a VPS/bare metal host in Seattle, Washington. The acquisition happened quickly and the terms of the arrangement are private. Still, it’s indicative of a cloud equity group seeing the profitability of web hosting when VPS is on board.
Virpus is well-known for being one of the most affordable VPS hosts in the US. The company has SSD-cache and Pure SSD services available. Although the host is based in Seattle, they’ve spread to have offices in Kansas City and Los Angeles, too. Right now, Virpus actually owns all hardware, including hardware at the enterprise level, which is how the host can afford to offer such budget-friendly prices to their clients. However, Virpus certainly isn’t the only host ideal for those on a budget—more and more hosts are buying their hardware and passing those savings on to clients.
Head in the “Cloud”
According to PR releases, the Cloud group is going to introduce a number of additional features to Virpus. This includes setup features with high-availability and a la carte, instant services for customers. Already, Cloud Equity Group boasts a number of impressive relationships with those in the industry that will help Virpus thrive even more. The host will expand to the East Coast and eventually internationally. Such growth is good for Virpus, good for their clients, and very good for Cloud Equity Group.
According to a managing partner at Cloud Equity Group, Kevin Wilson, “The team at Virpus has done an exceptional job building an industry-leading, budget-friendly, virtual private server provider with top of the line infrastructure. They’ve successfully differentiated themselves in an industry full of mediocrity and are well positioned for future expansion. The management team at Wow Technologies, the former partner company of Virpus, has been crucial to the growth and overall development of the company’s robust infrastructure, as well as its strategic positioning within the industry.”
All On Board
Everyone involved in the new arrangement has nothing but rave reviews to share. A managing partner at Wow Technologies (and co-founder) Jimmy Pandra says, “Their (Cloud’s) knowledge and experience in the industry will be a great complement to the existing Virpus team in helping to move the company forward.” While the industry may be full of “mediocre” players, that’s true of any bustling industry. This acquisition is proof that web hosting, when done well and with the right tools, can be a win-win-win situation for all players.
Make sure your web host would catch the eye of a group like Cloud, even if they haven’t chosen to sell.