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GoDaddy Buys Media Temple

141 points| recusancy | 12 years ago |techcrunch.com | reply

167 comments

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[+] bbx|12 years ago|reply
Media Temple was the first hosting service I remembered the name. It was around 2007, when I started web design. I was immediately fascinated by their brand, their design, and their philosophy. It looked honest and reliable. I actually never had the opportunity to become a customer because I didn't need an American-based server (I live in Europe)...

Well... until a month ago. I finally had a project that required a server based in North America. I chose MT quite rapidly, feeling confident about my decision and/or not caring enough to analyze the market.

And today, this (not so good) news. GoDaddy has had a very bad press for the last couple of years, and it seems like the philosophy gap between the two companies will be hard to handle. I guess it's just bad timing on my behalf but I'll try to stick to MT for the beginning.

Although yesterday I would have indisputably pursued my experience with MT for many years, I will now closely watch any subtle change in their customer policy and probably leave at the first signs of trouble, no matter how slight they can appear.

[+] larrys|12 years ago|reply
I originally started using MT because it was what Techcrunch used at the time when they started and iirc a few years after.
[+] rwhitman|12 years ago|reply
I have no love for Media Temple, but have so many client sites there that this really affects me. Just when I thought MT was improving they go and do this.

That line about it staying "independent" is total crap. I stupidly got locked into Outright and now a year or so after their acquisition by GoDaddy its now magically "GoDaddy Online Bookkeeping" and they want to link it with my GoDaddy account. Independent my ass. So now GoDaddy has all my business records sitting next to my MT accounts, old domain names etc. Ugh

[+] ohashi|12 years ago|reply
It's always interesting to hear people talking about trends they see in a web hosting company. The first thing I do is check and see if their experience actually matches what I see in the data.

http://reviewsignal.com/webhosting/company/23/mediatemple/ (click 'Trends')

I don't see much evidence of 'improving' but it looks fairly stable. It will be very interesting to watch what happens after today though.

I've been watching http://reviewsignal.com/webhosting/company/33/asmallorange/ because they are in a similar situation but half a year ahead of MT. They were bought out by EIG (Endurance International Group - which own HostGator, BlueHost, Host Monster, etc) back in March. They've been run independently and their service seems to have improved (cue EIG hate here). It's easy to craft stories, but I always like to see the data.

[+] rhizome|12 years ago|reply
A well-engineered deployment framework and backup regime should let you move sites to new hosts with a minimum of headaches (if not a minimum of time). Heck, an enterprising engineer could probably whip up a third-party site mover that uses some combination of limited DB privs, temporary SSH keys, etc. to move entire domains around.

You're right that any "things are gonna stay awesome!" through an acquisition is pipe talk. It's just a lie in an attempt to minimize churn.

[+] eugeneross|12 years ago|reply
There should have been some type of clause when you agreed to sign up with (mt) for a year. If not, you can make a pretty good argument for your money back.
[+] codereflection|12 years ago|reply
I wonder how this is going to affect the jquery.com site, which has been hosted on MT forever.

I have a strong hatred for GoDaddy, and will never consider Media Temple for any of their services now. Sorry MT guys, I just hate GoDaddy THAT much.

[+] recusancy|12 years ago|reply
Media Temple's brand destroyed by one press release.
[+] atourgates|12 years ago|reply
Now I'll be spending my morning creating a plan to transfer our clients (mostly small to medium businesses) that host on MediaTemple, to a new host.

Any recommendations on a host that offers similar quality/features to Media Temple's Grid/Shared hosting?

Specifically:

* About $20/mo

* An Easy to Use Dashboard

* The Ability to Reasonably Handle Traffic Bursts

* Decent Support

And, of course, not owned by GoDaddy.

[+] mtMattNL|12 years ago|reply
Matt from (mt) here. Sorry that you feel that way, but we assure everybody that it's a good thing. We're not making any major changes at the company, and we're going to have 10 times the resources to make better products.
[+] mtMattNL|12 years ago|reply
I was going to post person by person, but I figured a general post with all the info would be a better option. So here it goes...

We're definitely excited about the move. We know GoDaddy may have had a not so stellar reputation in the past, but we're very happy with the changes they've made this year. Along with that, we are very happy to get the funding and resources we need to make bigger and better products. We want to put out better products with the same style and flare, and we can now do it a lot better and a lot faster. Our support isn't changing, products aren't changing, and the only real big change today is that we're getting cake and lunch on the house.

Feel free to shoot any questions at me, or check out our weblog for a FAQ http://weblog.mediatemple.net/2013/10/15/faqs-about-the-goda...

[+] mikeho1999|12 years ago|reply
Matt, first of all, thanks to you and your team for posting in the comments on sites like HN, TechCrunch, and all the other sites where the news is starting to hit the tech community. I know it can't be easy to read so many critical comments against a company that I am sure has been a great place for you to work at.

However, I think trying to spin things as "everything at (mt) will be the same... only better" is a bit of a disservice to the tech community you are trying to reach out to, which is inherently more savvy about the reasoning and justification behind the acquisition itself.

In short: No company ever sets out to acquire another company to just keep things the same.

I do not doubt that in the short term, not much will change. But starting within the next year or so, there is no doubt in anyone's minds that the combined leadership team of GD and (mt) will begin to capitalize on business, product and technological "synergies" to help increase the bottom line.

That's not a knock against you, GD, (mt) or anyone. That's just business.

But what does that mean for all of your existing (mt) customers?

GoDaddy's modus operandi of profit maximization through questionable-at-best marketing practices, minimizing costs in customer and technical support, and taking any short cuts possible even at the detriment of the customer, does appear completely at odds with the high value of support and refined products that (mt) had prided itself over the years.

So the $400M question (or however much the acquisition was for) is: can these vastly different approaches of your business models be reconciled at all? Or will one way end up "winning out" over the other way? And if it's the latter, who will end up "winning out"... the GoDaddy way, or the (mt) way?

I do apologize if I come up to some of my own conclusions ahead of time, but I hope you guys can prove me wrong. But as I am now an outsider looking in, it ultimately won't make too much of a difference to me -- I actually have been in the process (and am nearly complete) in moving all of my clients off of GoDaddy to AWS (for completely unrelated reasons, mostly dealing with pricing).

But as someone who had been a customer for over 8 years and as someone who had been an advocate for (mt), I couldn't help from having the feeling of "whew, I just dodged a bullet" after hearing this news.

[+] rkudeshi|12 years ago|reply
I keep seeing allusions to this new, improved GoDaddy...can you provide some details about this? I haven't heard anything about it since moving my domains away from them after the SOPA/elephant stuff.

I know MediaTemple is a good company and wouldn't sell to GoDaddy without reason, so hopefully you can provide some solid justification for staying with you. The current FAQ/blog post don't address GoDaddy's toxic reputation in the tech community at all.

[+] sandstrom|12 years ago|reply
I appreciate that you take time commenting here.

But just as some crimes aren't ever forgiven, I think few people will ever forgive GoDaddy (and rightly so).

A few things that I think is despised: - Support for SOPA - Constant upsales, borderline spam - Being against Net Neutrality - Support for PIPA - A marketing strategy which begins and ends with biki-girls

Complaints about bad performance, bad support and expense products are also common.[1]

As an extra bonus go Daddy's founder, Bob Parsons, goes to Africa every year to kill elephants who he says are ruining crops (others say he's a rich idiot American who likes shooting elephants for fun).[2][3]

[0] http://en.wikipedia.org/wiki/Go_Daddy

[1] http://www.bbb.org/central-northern-western-arizona/Business...

[2] http://kottke.org/11/12/the-internets-go-daddy-issues

[3] http://abcnews.go.com/Business/daddy-ceo-bob-parsons-africa-...

[+] MartinCron|12 years ago|reply
I admire your courage and honesty to directly engage with the GoDaddy detractors (of which I am one, sorry). Maybe you can prove us all wrong and help improve them from within.
[+] kalleboo|12 years ago|reply
> the only real big change today is that we're getting cake and lunch on the house

When has life ever worked like that?

[+] thebiglebrewski|12 years ago|reply
I totally agree with @recusancy, this is the worst news I've heard all day...I absolutely despise GoDaddy and everything they represent.

Who should I switch to? Just have some WordPress site hosted on MediaTemple mostly...

[+] acallaghan|12 years ago|reply
Digital Ocean by a country mile, they come with a Wordpress image ready set-up for you, will cost $5 a month for an excellent webserver. I host 4 different Rails sites, and a Wordpress Network of 7 sites there, all running v well.

My referral link: https://www.digitalocean.com/?refcode=1ecc21b66a25

Edit: Note, I don't run all of those sites on the same server, that'd be silly.

[+] anu_gupta|12 years ago|reply
Depends on how much you want to pay, and exactly how much control you want, but one of these should sort you out.

* WPEngine

* Linode

* Bytemark (Big V)

* Rackspace Cloud

* DigitalOcean

[+] mtMattNL|12 years ago|reply
We knew that a lot of our current customers might have a negative response towards this. Like somebody said above, GoDaddy has made some pretty big changes in the past year. With this new acquisition we're hoping for bigger and better things for (mt), especially when it comes to new product lines.
[+] ohashi|12 years ago|reply
If you are starting to research your options you may find the data my startup publishes useful: http://reviewsignal.com/webhosting/compare

It tracks what people are saying about many of the big hosting providers on Twitter and analyzes what people like/don't like about them.

As far as anu_gupta's recommendations, I have data on 4/5:

Digital Ocean: http://reviewsignal.com/webhosting/company/101/digitalocean/

Linode: http://reviewsignal.com/webhosting/company/24/linode/

WPEngine: http://reviewsignal.com/webhosting/company/103/wpengine/

RackSpace: http://reviewsignal.com/webhosting/company/21/rackspace/

[+] MartinCron|12 years ago|reply
If it's just some WordPress site, nobody is better at running WordPress than WordPress.
[+] ChrisNorstrom|12 years ago|reply
I wanted to check out Media Temple as a long term host but after this.... I guess I'll stick with 1and1. I've been with 1and1 for almost 10 years. They're not perfect but they're more than satisfactory for me. When the traffic to my websites on my shared hosting grew they automatically moved me to a better more resource free server instead of forcing me to upgrade to virtual or dedicated servers. They're charging $14 per .com so do NOT register domains with them. Use NameCheap.com for that.
[+] dublinben|12 years ago|reply
Depending on your usage, you should check out ASmallOrange.com and NearlyFreeSpeech.net. They're both very cost effective options for personal sites.
[+] codereflection|12 years ago|reply
Checkout http://ghost.org/, which just opened to the public, if all you're doing with WP is blogging. Otherwise you may want to consider signing up on Wordpress.com, which isn't all that bad (just very limited in configurability).
[+] jjoe|12 years ago|reply
What about your CEO/co-founder Demian Sellfors?

Demian’s succession plan has been a long time in the making. In fact, Demian engineered the company’s strategy resulting in this acquisition. About a year and a half ago. Demian handpicked Russell P. Reeder to run the company. Both have been intimately involved with this acquisition. Demian will be shifting his focus to other projects, but his dream for (mt) to be the most trusted company in the world is still very much alive.

What about the other co-founder, John Carey?

John Carey, (mt)’s co-founder and CFO, is transitioning out of (mt) as part of the acquisition. He has also been intimately involved with the strategy as well. This is something he’s been planning for and thinking about for some time.

[+] izolate|12 years ago|reply
This is the most revealing part of the press release. The founders wanted to cash out. Let's not pretend this acquisition has everyone's best interests at heart. It only benefits GoDaddy and MT's founders, everyone else gets to witness the end of MT.
[+] jmduke|12 years ago|reply
Makes sense. GoDaddy's been trying to rebrand pretty heavily, what with the redesign, new marketing push, etc., and the article frames MT as a company that isn't exactly doing great financially.

Pretty boggling statistic: GoDaddy has four thousand employees. Twitter has around half that.

[+] MartinCron|12 years ago|reply
I didn't even know that GoDaddy was doing a redesign and new marketing push. I went to their site and was happy to see fewer bikini girls. However, in the about us, they still sound like they're trying to be brogrammer central:

Like a Stanford dorm room on steroids, our Sunnyvale office is 40,000 square-feet of Bay Area badassery, brimming with some of the biggest brains on the planet, dreaming up digital masterpieces and keeping time in agile sprints.

[+] josefresco|12 years ago|reply
Not mind boggling when you realize that GD actually sells stuff. Therefore they have sales, support etc. Twitter while popular, is only now starting to actually sell "stuff" ie advertising.

Look at Groupon as an example of real world staffing gone awry.

[+] winslow|12 years ago|reply
I didn't realize they were re-branding. I just looked at their site for the first time in a while and their rendition of the "flat ui" craze looks horrible in my opinion.
[+] justindocanto|12 years ago|reply
As somebody who's been chatting with people over at GoDaddy about their upcoming plans to improve their services/ui/support/etc, I've been giving them a chance because it sounds pretty great.

However, that fruit has yet to bare so I am 100% not happy with this at all. I'm actually really disappointed/frustrated/mad right now. This was my safe haven away from everything that budget hosts like GoDaddy did, stood for, provided, etc.

These kind of acquisitions always starts with "We won't be making any major changes" and then the company pulls a Yahoo and begins to slowly deteriorate.

This is the worst news, in regards to my every day business, that I've heard all year. I have 20 clients with DV servers, as well as my own servers and I am now feeling uneasy about this.

Also, have we not forgotten the anti-sopa / anti-godaddy coupon codes MediaTemple was giving out when people were bailing from GoDaddy during the SOPA/PIPA uproar? What happened to that? Nooooooo.

[+] josefresco|12 years ago|reply
For all those here suggestion small alternate hosts, accompanied by their anecdotal positive experience remember that your favorite host is probably one fat check away from selling out just like MT. In fact, most web hosting models are built from the ground up to eventually get swallowed (acquired) but a larger hosting fish.

I've been through several hosting buyouts with my clients over the last 13 years and none have ended well. Even after the dust settles, the "New Company" almost always loses it's original formula for success and with it, it's original customers.

Lessons learned: Host with bigger hosts less likely to be snapped up. Diversify your client hosting providers so one botched buyout will not sink you.

[+] rwhitman|12 years ago|reply
Yea exactly. You just can't win with a small host provider. They will always get acquired. Always. Though I did get the sense that MT was large enough to stay independent. Really uncomfortable feeling knowing its GoDaddy now
[+] ohashi|12 years ago|reply
Another problem with small hosts is small sample size. Hosting is an odd product that everything is good until it's not. Many/most people never really have any sort of 'experience' with their hosting company. Which ends up as a default neutral/positive opinion. But it's really when there's some sort of incident that the real quality of a company comes out. Until a host is big enough, there generally aren't enough incidents and data points to say much about them.
[+] ChrisNorstrom|12 years ago|reply
"They'll keep things the same and let us run as an independent company" - This is the most told lie during a company acquisition.

1) Media Temple (mt) revealed that they have very slow growth.

2) GoDaddy buys (mt).

Do you think GoDaddy bought (mt) out of the goodness of their hearts? To GoDaddy this is an investment. If they spend $100 million buying your company, they want your company to produce $200+ million back and they'll tinker with whatever they need to to make that happen.

3) GoDaddy sees that (mt) with it's slow growth isn't paying itself off. (and after today's news even slower growth)

4) GoDaddy starts making changes (merging teams, merging products, changing terms, playing with prices and plans) to see an increase in revenue.

[+] systems|12 years ago|reply
I have one recommendation, hosting knowledge on hn is really not that great, you should visit webhostingtalk forum for better and more honest discussions on hosting companies and their quality

MT is not perceived as a good host on wht ... it usually gets average or below average review ... so I dont know why everyone is talking as if godaddy will bring them down, MT was never a great company

And i do believe the MT fellow who is saying this will improve MT, sure it will ... godaddy is by far a bigger and more successful company than MT

[+] nhangen|12 years ago|reply
I am so, so disappointed about this. Really love Media Temple and had been considering moving more of our resources to them.

On the other hand, I hate GoDaddy and will absolutely not remain a MT customer.

Anyone have a list of good alternatives for reliable semi-managed VPS hosting in the US?

[+] nwh|12 years ago|reply
Depends how managed you need it, but Digital Ocean have been getting nothing but praise of late. They're incredibly cost effective too.
[+] zOrg-2013|12 years ago|reply
Since being in business since 1997, this is my 5th notice of: "...we've be bought & nothing will change...It will be great!..."

It's a crap statement from MT. Nearly a lie. However, it will take several months until MT starts to show real singes of GoDaddy infiltration - in my opinion.

My experience at MT has been excellent over the last 4 years, & conversely my experience with GoDaddy VPS & Private servers have been horrible, a joke, & expensive - resulting in the loss of several $five $figure accounts for my little company.

I've actually MADE great new clients & good money MOVING them off of GoDaddy platforms into my other hosts - MT being the front runner.

Is it time to move services? Yes and no. In the short run (like 6 months) it's a 'wait and see' deal. I am going to move most of my 436 websites/clients away from MT over the next year, and keep and hand-full of sites at MT on my DV (vps) just in case the GoDaddy buyout actually works out.

I've NEVER experienced a successful buyout as an existing account holder.

Message to MT: YOU HAVE BETTER GET THIS GODADDY CRAP RIGHT! You've already lost 50% of the good faith that we as MT clients have.

Suggestions for new host to follow on next post.

zOrg.

[+] vhost-|12 years ago|reply
GoDaddy has repeatedly blocked my domain transfers, had customer service call and harass me about moving domains out of their control, and didn't listen to a word I said about the elephant scandal when they called me.

I still, to this day, get calls from GoDaddy even though my last domain (which was blocked from being transferred for many months) left their hands last year.

No way am I ever going to trust them, or any company they own again.

[+] jcomis|12 years ago|reply
ugh. I don't like this. I liked MT. I just don't like GoDaddy and the way they do business (example: their ceo shooting elephants, their ads, the way they squat domains, they supported SOPA, etc) and do not wish to be their customer, ever. Wonder how many people feel the same as I do?
[+] justindocanto|12 years ago|reply
They have a new CEO who seems to have a much better moral compass, but everything else... in absolute agreement.
[+] thejosh|12 years ago|reply
Wonder how much for?

And that 88% of their "technical audience" will like the GoDaddy purchase?

[+] acallaghan|12 years ago|reply
This'll be a good thing if MT's customer service and server tech line up replaces over GoDaddy's, but it won't. I'm afraid GD will just take the customers, move them over to their server and strip MT for assets
[+] jpea|12 years ago|reply
Considering that developers are usually the ones that recommend hosting decisions to their clients (since the clients generally have no clue about who to go with), they just chopped off the main artery of their business with this sale. Kudos to the MT founders, but GoDaddy just overpaid for something that might be a skeleton company within a few months.