Hostworks replaces Macquarie Hosting in multi-million GraysOnline deal

Hostworks replaces Macquarie Hosting in multi-million GraysOnline deal

Hostworks wins 3-year contract to provide online auction business with hosting platform and availability guarantees

IT outsourcing provider, Hostworks, has won a multi-million dollar competitive tender with online auction business, GraysOnline.

The contract has Hostworks providing managed services infrastructure for the auction site, which is moving from its current provider, Macquarie Hosting. Hostworks will provide a hosting platform and guarantee availability of GraysOnline's Australian and New Zealand sites.

Hostworks sales and marketing director, Klaus Bartosch, said the contract was worth millions over three years, but didn't disclose the exact amount.

Hostworks' other key clients include Ten, NineMSN, SBS and

"GraysOnline is on par with and Ten for size. I'd say it is in the top 10-20 websites in the country, and its growth as a company is exceptional," Bartosch said.

In a release, GraysOnline said sales had increased 30 to 40 per cent per annum, and it expected growth to continue at 40 per cent annually. A key driver for switching providers is the forthcoming launch of a new website and auction service in May.

GraysOnline managing director, Cameron Poolman, said the business has transitioned away from its traditional auction model to transacting more than 90 per cent of online sales.

"We chose to move from our current provider because Hostworks understands our business needs, especially the critical nature of our website to the success and growth of GraysOnline," he said in a statement.

Bartosch said it was rare for a company to switch providers and added this was a substantial win for Hostworks.

"Less than 10 per cent of customers switch providers, and when they do it's usually a reflection of the quality of the services they had been getting and their current needs," he said.

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