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EIG Hosting Talk: Non-Strategic Brands

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Endurance International Group (EIG) has been raising prices and streamlining operations for all “non-strategic brands”. They haven’t named any of these non-strategic hosting brands, but have stated that BlueHost, HostGator, and iPage are not a part of this group. Instead moving forward these three web hosts are considered EIG’s “key hosting brands”.

From EIG Fiscal 2017 Q1 Earnings Conference Call – Prepared Remarks

“We continued our focus on key hosting brands, which include Bluehost, HostGator, and iPage.”

“For the brands that we do not market actively, we are planning price increases, and operational streamlining across a number of brands in order to improve cash flow. Finally, as expected, we continue to see higher than normal levels of churn associated with most of the non-strategic and gateway products launched in the last 18 months.”

From EIG Fiscal 2017 Q2 Earnings Conference Call – Prepared Remarks

“Finally, turning to our non-strategic brands, performance was in-line with our previously communicated expectations. As we continue to focus on operational streamlining and cash flows in these brands, we saw, and continue to expect, declines in subscriber count and revenue. As we look to the second half of the year, we plan to make additional efforts in operational streamlining such as greater use of outsourced chat support. We also plan on working to consolidate platforms for some of our smaller non-strategic hosting brands in order to increase free cash flow.

So if you’re using any EIG hosting brand other than those three key brands, EIG has laid it all out for you. Pretty much expect things to be on the further decline and for prices to increase if they haven’t already increased for you. They are expecting a higher churn rate and there’s no point in proving them wrong on this by staying with them. Some EIG brands did increase their prices this year, e.g., A Small Orange, Arvixe, and Site5 all increased their prices on June 1st, 2017.

A Small Orange plans did start at $5/month and now start at $8/month (60% Price Increase)A Small Orange Price Increase

Arvixe plans did start at $4/month and now start at $7/month (75% Price Increase)
Arvixe Price Increases

Site5 plans did start at $4.95/month and now start at $6.95/month (40% Price Increase)
Site5 Price Increases

Some Reactions on Twitter to Price Increases

EIG’s Operational Plan

eig non-strategic brandsSlide From EIG 2017 Q2 Earnings Presentation PDF

If you are to host with one of EIG’s many web hosting brands (full list) I’m sure we can all agree that it does not make any sense whatsoever to go with or remain with one that is considered “non-strategic” in EIG’s operational plan. It should also be noted that this really is not a recommendation to move to one of EIG’s “key hosting brands” (BlueHost, HostGator, and iPage) either. This post is simply attempting to serve as an acknowledgement of where the current and future focus of web hosting is at with EIG.

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