So last month JaguarPC welcomed HostingZoom users into the fold, with the announcement of the consolidation of the two brands. HostingZoom was to be absorbed and its users migrated. Everything is above the boards, of course, which doesn't make this a particularly interesting story, until you realize that JaguarPC owner Landis Holdings Inc. actually acquired HostingZoom back in 2008. No, really. We even ran an article on it.
Consolidation, or, Being the Littler Fish
So that’s interesting. Consolidation is the name of the hosting game right now, and the article specifically mentions the desire to ‘put on the brakes’ to avoid upsetting any particularly finicky HostingZoom customers, but… six years?
No one seems to be making a fuss, and JaguarPC’s reputation is good all around, so we figured this might be an interesting flipside to some of the catastrophes we see with regards to acquisitions on HostJury- a look into a smooth transition and the nuts and bolts of making two business work well together.
So we dropped a line to Zachary McClung, Chief Customer Officer at JaguarPC, asking him what his perspective on the delay was.
There were multiple reasons for the brands staying separate.
First, a company being bought out can be very traumatic for customers. You've seen the horror stories on different forums. Look at the issues HostGator clients have run into since EIG purchased them. Clients gradually warming up to the Jag way as we like to call it was important. It would create the least amount of frustration for clients and it paid off.
Second, each brand had their target market from Hosting Zoom being metered hosting, Jag being unlimited and Reseller Zoom being affordable reseller hosting. When marketing to those demographics it was helpful to have separate sites.
Over the last couple of years Hosting Zoom clients were warming up and even purchasing products from our different brands on their own. It just become a natural evolution to begin streamlining the brands into one. We've really had a great response to the client bases coming together and the revamping of the product offerings. We are excited for the transition and what we will be able to bring a unified client base in the future.
Traumatic indeed. The problem with fast consolidation time, as with the aforementioned horror story of mega-host Endurance International Group gobbling up HostGator, swapping data centers, and spitting out something… vaguely resembling a webhost, is twofold. One is a change in features. As creatures of habit, especially for something as complex as hosting, having a process and a system that works is something very important. Changing that process is an invitation for disaster, even if the new features are relatively equivalent, or sometimes even superior.
The second problem is a simple lack of support. Support is the front line of anything technical, especially hosting, and it shouldn’t be surprising that individual companies have individual support teams scaled to the size, pace and nature of the operation at hand. A merger can mean a change in workload, in priorities and even in culture, and when this causes that front line to crumble, it can be disastrous, taking all the little problems of the transition and blowing them way out of proportion.
JagPC isn't without change. They've recently launched a new website, expanded the product offerings to include Cloud web hosting, and they've added a Solid-State-Drive (SSD) options to their VPS line of products. As can be expected there has been some chatter of individual frustrations with support on JaguarPC from old HostingZoom/ResellerZoom clients. What we can see, however is that the philosophy practiced here is basically solid. Consolidation can be responsible if it’s done slowly and organically. You don’t grow a business overnight. You can’t cobble one together in that time frame, either.
How will the full merger pan out? If you’re a JaguarPC customer (editor's note: includes the newly merged HostingZoom clients too!), we’re counting on you to find out. Leave a review sharing how you’re feeling with the changes!