GoDaddy has reorganised its business ahead of its quarterly report. The well-known web hosting and domain registration provider is planning to take down the loss making divisions.
GoDaddy has confirmed that it will sell off European PlusServer division to a private equity firm based in London. The BC Partners will purchase it for $456 million. Moreover, it is also clear that the firm is shutting down the Cloud Servers as well. This division in firm started in 2016. The idea then was to launch something similar in lines with what AWS does. However, GoDaddy failed to pick up the pace and the division fell apart.
The news of GoDaddy shutting down its cloud servers is confirmed. As many of its customers went online and complained using twitter. The firm replied with details confirming the shutting down of cloud servers. However, it did mention that it won’t shut down its core business units.
GoDaddy was not able to bring up its new server side business to profitability. Hence, it was forced to take such a decision. GoDaddy has reorganised its business in hopes of reducing cost and increasing the efficiency of operations.
Moreover, It seemed impossible for GoDaddy to create traction in cloud services business. Amazon has a big advantage here. It has even surpassed Google in many aspects. GoDaddy has requested its customers to switch to VPS plans. Further, this is not the first time that the company has pulled away from cloud computing business. Back in 2012, GoDaddy did something similar that it is doing now.
GoDaddy has reorganised its business before also. The web hosting giant has to keep its shareholders happy and it could not carry on with loss making divisions. After it has asked its customers to opt for VPS. It seems that GoDaddy has reorganised its business to focus more on cloud web hosting services. Moreover, it’s about moving the customers in the direction where there is profitability. Whether it is by force or by will.
It is also unclear as to whether GoDaddy has reorganised its business keeping in mind that it would affect a lot of businesses. The fate of those who are at the receiving end is yet not clear. Moreover, it will remain to see how this decision impacts GoDaddy’s image in the industry.