Cloud Growth Propels Turnaround at Codero


A look at the cabinets inside a data center operated by Codero, a growing hosting provider. (Photo: Codero)

A year ago, Emil Sayegh took the reins as CEO at Codero, a dedicated hosting provider that had pretty flat growth at the time. After a year of adding talent and expanding the product portfolio, the company has returned to a year-over-year growth of better than 20 percent, and is set to expand its infrastructure.

Sayegh says that success was tied to growing the company’s cloud portfolio to enable hybrid infrastructures and a sharper focus on customer service. The company has evolved from a solid dedicated hosting provider with flat growth to a hybrid hosting provider with growth above industry averages.

The company was founded in 1992 as an IT equipment value-added reseller (VAR). Four years later, the company repositioned as, a provider of Internet access, domain name registration, and hosting services. In 2006 it was purchased by Catalyst Investors. The company divested its shared hosting and domain name businesses in a sale to Hostopia (Deluxe Corp) in 2009, rebranding as Codero and shifting its focus to dedicated and managed hosting.

There was a sequence of three CEOs that came on board after the rebranding. Customer satisfaction was always very high and Codero developed an automated platform that was quite unique early on.  But the company didn’t really begin to hit its stride until last year, when it started to see notable growth.

Staff Changes

“We’ve added some really good people,” said Sayegh. “We just hired some of the top networking experts in the industry, bolstering the networking team. It’s the reason we’ve had great uptime. You need to have a good networking architect. From an uptime perspective, we’ve differentiated ourselves by constantly holding ourselves to the highest standards. 100% uptime guaranteed, plus we mean it.”

100 percent uptime? Website monitoring company Pingoscope tracks hosting provider performance throughout the year. Codero clocked in at 99.99517% uptime, having a single 7 minute outage, and was at the top of the list.

The company continues to improve its automation and cloud offerings. Sayegh says hiring Chandler Vaughn as senior VP of products was instrumental. “He’s an industry expert who knows cloud like no other,” said Sayegh said.  Vaughn was a major part of hosting strategies at Rackspace and Sungard, and also headed the cloud computing institute at the University of Texas before joining Codero in September. “We’ve made tremendous progress with cloud and automation since,” said Sayegh.

The company also opened an office in Austin, Texas in 2012. “Opening an office in Austin enabled us to get a completely different pool of talent,” said Sayegh. “Before we were limited to Kansas City and Phoenix. Austin is becoming a good place for hosting talent.”

Focus on Cloud Hosting

The company has three lines of service: Dedicated hosting, cloud hosting and managed hosting, with the company launching deeper into both cloud and managed services over the year.

“We’ve added several new products: smart servers, a virtual dedicated offering,” said Sayegh. “We added private cloud that we branded micro-cloud.” Adding these pieces as a compliment to its bread and butter dedicated hosting has been a boon for the company.

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About the Author

Jason Verge is an Editor/Industry Analyst on the Data Center Knowledge team with a strong background in the data center and Web hosting industries. In the past he’s covered all things Internet Infrastructure, including cloud (IaaS, PaaS and SaaS), mass market hosting, managed hosting, enterprise IT spending trends and M&A. He writes about a range of topics at DCK, with an emphasis on cloud hosting.

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