Internet infrastructure provider ehyou.com has acquired the Web hosting division of iAsiaworks Australia, its third acquisition of a Web hosting business in four months.
In December, ehyou.com snapped up DNS (Domains n' Servers), before buying dedicated hosting provider IceBlue last month. Although he wishes not to disclose the value of the acquisitions, ehyou.com CEO Dominic Carosa said they have resulted in thousands of new customers.
Ehyou.com's existing Web hosting business, Ozhosting.com, will now take on iAsiaworks Australia's SME customers under its shared hosting offering, while the IceBlue acquisition has given ehyou.com a range of blue-chip corporate clients under managed hosting arrangements (ie dedicated servers).
"People have been asking why we're moving into Web hosting," said Carosa. "Its because it's a great annuity based revenue stream, and our revenue per customer can keep increasing over time as we add new services."
Carosa said he was repositioning the company as an ASP (Application Service Provider), and acquiring existing Web hosting companies was the most cost-effective way of acquiring a new customer base without needing to invest in any additional infrastructure, marketing or administration costs.
"The positive impact on our bottom line from these acquisitions is already evident and the improvement is continuing," he said.Photograph: Dominic Carosa, ehyou.com CEO