ASX listed hosting provider, Destra, has slashed the price of its dedicated hosting package to attract small- and medium-sized customers to the higher-value offering.
The company is discounting its dedicated web hosting package from $499 per month down to $299, after striking up special pricing with an OEM supplier.
Destra runs a large “virtual hosting” business (where companies share server space) called OzHosting.com. It claims is the second largest of its kind in Australia.
This business was built primarily through the acquisition of a series of small Web hosting companies such as Domains n' Servers, iAsiaworks Australia and Super-hosting.com.au.
While virtual hosting is significantly cheaper than dedicated hosting, it has its disadvantages.
“If one company writes a bad line of computer code and crashes the server, all the other companies that are sharing with them have their Web site go down as well,” the company said.
Destra chief executive officer, Domenic Carosa, said the ASX-listed company could now offer attractive pricing for dedicated hosting (where the customer has its own dedicated server for its website) due to a new relationship with a “prominent computer manufacturer”.
The company declined to name the manufacturer, but said the OEM arrangement saw the mystery vendor’s servers re-branded as “Genesis” for the purposes of the promotion.
Carosa said the new price was significantly cheaper than that offered by domestic suppliers, and could also compete with International hosting companies.
He said lower prices were the only way to “stem the tide” of Australian companies going offshore for cheaper web hosting.
Relatively cheap monthly rates have led to a healthy take-up of dedicated hosting in the US – where more than 30 per cent of SME companies have taken up dedicated hosting solutions, according to Aegis Research commissioned by Destra. In Australia, about five per cent of SME companies have taken the dedicated option.