SWsoft Makes a Splash in the Global Hosting Market

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Privately held SWsoft Monday announced the completed acquisition of Plesk and Yippi-Yeah! E-Business, GmbH. The two companies, also privately held, develop and sell software for the hosting provider industry.

SWsoft completed its acquisition of Plesk and Yippi-Yeah! Monday. The combined entity claims a customer base of more than 3,000 major hosting providers using its products in over 100 countries.

SWsoft's post-acquisition product portfolio consists of Plesk Server Administrator (PSA), a "control panel" for dedicated servers; Virtuozzo, the company's own virtual private server software; Confixx Professional, Yippi-Yeah!'s hosting software; and HSPcomplete, a hosting automation solution that SWsoft developed.

The three companies are not strangers to each other. Plesk and SWsoft have been working together for the past few months, former Plesk CEO Dmitri Simonenko noted. Last month, the two vendors joined forces and began selling Virtuozzo and PSA together.

In addition, "SWsoft's HSPcomplete hosting automation solution already integrates PSA and Confixx Professional under a single framework. Yippi-Yeah! resellers and partners across Europe and Plesk partners throughout the rest of the world already sell SWsoft products," Simonenko said.

Looking ahead, future releases of HSPcomplete will take advantage of Plesk's Enterprise Manager application and system architecture.

SWsoft is now aiming to be as big of a player in the global hosting market as it currently is in the United States.

Prior to the acquisition, Yippi-Yeah! was the leading hosting provider in Germany and was best known for its Confixx software. Simonenko told ServerWatch that SWsoft's primary reason for acquiring Confixx had more to do Yippi-Yeah!'s 95 percent market share in Germany than with the actual Confixx software.

Yippi-Yeah!'s Bremen, Germany office will serve as the European headquarters, as SWsoft Europe.

Herndon, Va.-based Plesk's offices will be expanded to be the site of the company's new global corporate headquarters.

SWsoft's current San Francisco offices will be transformed into the company's U.S. West Coast sales and services branch.

SWsoft estimates that the new company has more than 3,000 major hosting providers using its products in over 100 countries, including eight of the top-10 U.S. providers and three of the top-5 European providers. The hosting providers offer sales channels and support for roughly 30,000 server deployments supporting 3 million organizations.

Hosting providers using solutions from the three entities include Affinity, Catalog.com, CI Host, Datapipe, DellHost, Interland, Rackshack, Rackspace, intergenia (Server4Free/PlusServer), and 1 & 1 Internet.

Joshua Beil, vice president of Tier 1 Research, an analyst firm that follows the Internet infrastructure market, notes that "of the $9.1 billion U.S. hosting market in 2003, the mass market segment served by solutions from Plesk, Confixx, and SWsoft we estimate to be about $3.8 billion."

"We see this acquisition establishing SWsoft as the leader in providing hosting software solutions, in terms of total number of control panel licenses," he added.

According to Simonenko, SWsoft's only substantial competitor in the hosting space at this time is Ensim.

This article was originally published on Jun 9, 2003
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