I read with interest the Rackspace Hosting poll that stated “58 percent of respondents cited the ‘hassle of managing servers’ as a challenge for their organization. This led into the new Rackspace “No More Servers” marketing drive.
This is a subject I can deal with. I am not “real technical savvy” as in engineering. But down stairs I have that box of cables, splitters, this volt and that volt thing, female, male, coax, fire-wire, RCA and stuff from my Amiga 500. So there is empathy. As we all deal with the 3.25, 6.6, rebuilt, retrofit and upgrade. I remember once I retrofitted a 10 meter satellite dish, someone told be we did not get it right the first time. Windows 7.
As a hosting company you are a service company. People do not want the hassles, trouble and all that stuff. As a matter of fact in many ways your value is when you seemingly do not exist. That is a happy customer, consumer and citizen of planet earth or more importantly citizen of your billing system.
So why is a server company having a “No More Servers” marketing drive? To sell you more servers? Reverse psychology? No they are selling you a concept neatly wrapped amongst those snarl of black snakes hidden in that box of wires in your garage.
So what does this have with your web hosting company? The value of your web hosting company? The M&A of your web hosting company? Subscriber Churn.
The value of your business is locked in the subscriber churn. You may be surprised the number of people that tell me they are growing because they make X number of sales ever month. Frankly they often forget to calculate that equally important number, the X number of disconnect orders they process every month. Hence churn and churn history.
So today I would like you to focus on that number and the capability of your billing system. How many people relate back to that hassle somewhere in your business? Those numbers that can make or break your growth, profits and company value.
Thank god for HDMI. My troubles are over..
More about Tom: NCC – the Hosting Business Broker Twitter: – TomNCC and WebHostBusiness
About Tom Millitzer
I am an M&A guy. I sell Hosting Companies. I want you to fulfill your dreams. If you are building your company or exiting for success...I want help you grow rich.
I started NCC International in 1994, we represented our first hosting company in 1997. NCC has completed over 400 assignments. If you are considering buying or selling you need to know me. I do not bite.
No related posts.
