10 Significant Hosting Industry Mergers and Acquisitions in 2016

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2016 has been another year of consolidation in several regions and markets for web hosting and cloud services. There have been some headline grabbing acquisitions, as well as many significant, though smaller, deals.

Below are some of the biggest mergers and acquisitions in IT over the past year, in no particular order.

1. Cisco’s $1.4B Jasper Technologies Acquisition Signals Major IoT Move

In February Cisco acquired Jasper, which called its platform “the On Switch for IoT,” to operate its new IoT Software business unit. By adding new features and bundling it into a complete IoT solution, Cisco is positioning itself for a large share of IoT services revenue.

2. Oracle Acquires Ravello Systems for Reported $500 Million

Ravello Systems is a startup enabling cloud development workload migration and founded by virtualization pioneers.  Oracle paid a reported $400 to $500 million for it to make it easier for enterprises to use its public cloud services, and open a cloud research facility in Israel.

3. LeaseWeb USA Acquires Ubiquity Hosting’s Parent Company Nobis Technology Group

In March, LeaseWeb USA picked up Ubiquity’s 7 U.S. data centers, its cloud and hosting customers, and other assets.  The move not only significantly expanded its network, but also improved its pitch to game developers.

4. Microsoft to Acquire LinkedIn: What You Need to Know

This $26 billion June blockbuster brought big data together with the platform to use it, in Microsoft’s ambition to “reinvent productivity and business processes.” Application synergy and AI could help Microsoft defend its position in the business applications market in the long term.

5. Samsung Acquires Cloud Startup Joyent, Commits to Keeping Platform Open Source

Joyent’s cloud platform is now supporting Samsung mobile and IoT services, while it continues to operate as a subsidiary, selling its fast-growing Triton container-as-a-service platform. Samsung will keep the platform open source, and provides Joyent with scale it had sought in a competitive market.

6. United Internet Delays IPO as it Sells Hosting Stake to Warburg Pincus

Private equity firm Warburg Pincus headed off what would have been one of the year’s big hosting IPOs by paying just under $500 million for one-third of United Internet’s Business Applications unit.  The unit includes 1&1 Hosting and other brands, and gains resources necessary to compete for SMB market share.

7. Oracle Acquires Dyn to Boost Cloud Performance

A month after Dyn was hit with a massive DDoS attack backed by a Mirai botnet, Oracle signed an agreement to acquire the company. Oracle says Dyn’s DNS service will help it create a one-stop shop for enterprise IaaS and PaaS.

8. GoDaddy Acquires Host Europe Group for $1.79 Billion

After months of speculation, and a withdrawn bid from Deutsche Telekom, HEG found a buyer in GoDaddy. The fate of HEG’s PlusServer is up in the air, with the rest of the company integrating with GoDaddy to give it a significant foothold in the European SMB market, bring it into more direct competition with the aforementioned United Internet. GoDaddy also picked up ManageWP in September.

9. HNA Acquisition of Ingram Micro Closes, Serves as Microcosm of the Channel

In a move which both reflects and influences the channel, China-based HNA paid $6 billion for the world’s largest IT distributor. The deal, announced in February, may have cleared regulatory hurdles just in time to avoid a more challenging process under the Trump administration, which could amplify the benefits of HNA’s newfound geographic reach.

10. United Internet Acquires German Hosting Provider Strato

Striking quickly with the resources of Warburg Pincus, United Internet paid approximately €600 million to gain Strato’s presence in the Dutch and German markets. With over 2 million customers, 2 data centers in Germany, and €127 million in revenues forecast for 2016, Strato gives United Internet increased scale to compete with GoDaddy, Web.com, and Endurance International Group for the European SMB market.

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