Data also shows that the largest percentage (26%) of SMBs currently use GoDaddy as their hosting provider.
GoDaddy began offering cloud hosting options in March 2016. In response, Clutch used data from their recent Cloud Hosting Survey to analyze GoDaddy’s dominant position in the transforming hosting industry, specifically in relation to SMBs. The analysis includes predictions and recommendations for GoDaddy’s future.
Industry experts point to three factors that contribute to GoDaddy’s popularity among SMBs:
- Cost Savings
- Additional Features
- Brand Awareness
“I think they offer unbelievably cheap service, which is always going to garner a lot of attention,” said Rachel Bair, Director of Hosting & Client Services at Unleashed Technologies, a web development and hosting service. “It’s the same reason Walmart does exceptionally well when grocery stores and Target and lots of ‘mom and pop’ shops offer the same product. You’re going to go where it’s the least expensive.”
Furthermore, Clutch found that 57 percent of SMBs use site backup as an additional feature from their hosting provider, while 55 percent use email hosting and 42 percent use mobile access to administration and statistics. The largest percentage of SMBs (40%) back up their website and applications exclusively with their hosting provider.
“The web hosting landscape is not like five years ago,” said Osman Seyrek, COO of Renovatio Cloud Solutions, a cloud technology and custom software development firm. “There are way more competitors right now… So all the participants are trying to provide extra services in order to get the upper hand.”
GoDaddy is well known for being a full-service hosting provider, but the company has angled their cloud servers’ marketing toward developers with small business clients, as opposed to small business owners. As a result, the features they promote are more technical in nature.
Lastly, brand recognition plays a large role in fueling GoDaddy’s popularity, especially in regards to their unique and often controversial advertising campaigns.
“You can’t beat having Danica Patrick all over the TV interviews with the GoDaddy logo,” said Raul Ramirez, CEO of Renovatio Cloud Solutions. “It goes back to marketing and how they position that. They did a great job early on and that’s what differentiated them.”
However, the report speculates that the recent shift towards family-friendly marketing may affect their popularity. Given that GoDaddy’s revenue structure increasingly depends on hosting services – hosting brought in $160.4 million in the first quarter of 2016 – their ability to remain dominant in the SMB cloud server market could be vital.
The Clutch survey included 300 U.S. SMBs with 2-1,000 employees. Sixty-eight percent (68%) of the companies surveyed have 200 employees or less.
For more information and to view the complete article, please visit: https://clutch.co/cloud/hosting/resources/godaddy-and-cloud-servers
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