Former WebCentral CEO, Andrew Spicer, is the biggest casualty as the hosting provider is integrated into domain registrar, Melbourne IT. WebCentral shareholders agreed to sell the business to Melbourne IT in August for $61.2 million.
Spicer is one of 12 staff made redundant from a total of 450. Melbourne IT CEO, Theo Hnarakis, said Spicer would be pursuing other interests and predicted further changes. "In some cases you need specific skills so you need to make changes and slightly fine tune different roles," he said. "We are currently working on integrating everything from payroll systems to the way we are doing our billing through to provisioning solutions and merging our internal CRM solutions." The newly combined entity is expected to be fully operational by January 1. The company has constructed five divisions - reseller, business and consumer, corporate and government, corporate brand services and FTR digital recording. Each will be run by a separate executive.
"The great thing about this approach is that you don't have a dilution of focus," Hnarakis said.
The corporate and government division is new to Melbourne IT. Hnarakis said it would focus on providing dedicated hosting services.
Its reseller division is biggest, with Hnarakis estimating annual revenues of $50 million.
"It provisions domain names, hosting packages, search engine optimization and filtering solutions. About two weeks ago we launched software as a service (SaaS) packages and a CRM solution," he said.