The more web-facing computers visible at a hosting company, the higher its market valuation, a new Netcraft study released on Thursday has found.
Using the market capitalization (or acquisition purchase price where it applied) as a valuation, Netcraft found that the average value per web-facing computer is around $43, 000.
In the managed hosting market for example, each web-facing computer at Rackspace is valued at twice as much as one at Peer 1, which could reflect the value of its Fanatical Support and OpenStack cloud.
Using the computer counting method, Netcraft said Amazon’s hosting division, Amazon Web Services, could be worth around $7.8 billion, around 6 percent of its entire market value. Recent estimations by Morgan Stanley said AWS could reach $24 billion in revenue by 2022, while analysts at Quartz said AWS revenue is around $2.4 billion this year.
“Even with the same number of web-facing computers, the valuation of a hosting company can vary due to the quality of the physical hardware, the network infrastructure, and also sales and support staff,” Paul Mutton of Netcraft said in a blog post. “Most important is the current and future revenue, and hence profit, that each web-facing computer can generate.
The number of web-facing computers doesn’t take into account the number of computers used behind the scenes, Mutton said, which could vary from hosting provider to hosting provider depending on the business model.
Go Daddy’s valuation of $4.1 billion is greater than expected from the number of computers at Go Daddy, he said, which could be explained by its role as the largest ICANN-accredited domain name register.