The web hosting industry is witnessing significant changes with the recent rebranding of EIG (Endurance International Group) as Newfold Digital. This move has raised concerns among webmasters and customers alike, as EIG is known for owning numerous web hosting companies and exerting control over the industry. In this article, we will delve into the history of Newfold Digital, explore the issues associated with EIG, and understand the motivations behind their rebranding. Let’s take a closer look at the events leading up to this transformation and the implications for web hosting customers.
The Rise of EIG and Its Dominance
EIG, now known as Newfold Digital, has been a major player in the web hosting industry for many years. With a staggering $2.24 billion valuation, EIG has acquired a multitude of web hosting companies, consolidating its hold on the market. This consolidation has raised concerns among webmasters and customers, as it limits competition and potentially stifles innovation.
The Problem with EIG’s Monopoly
EIG’s monopolistic control over the web hosting industry has been a cause for concern among webmasters and customers alike. By acquiring different hosting companies and changing their corporate infrastructure, EIG effectively controls a significant portion of the market. This concentration of power raises questions about healthy competition and customer choice.
Issues Associated with EIG’s Hosting Companies
The numerous hosting companies owned by EIG have garnered mixed reviews from webmasters and customers. Complaints range from poor customer support and server performance to deceptive billing practices. Some of the well-known hosting brands under the EIG umbrella include Bluehost, HostGator, and Domain.com. Despite having a significant market presence, these brands have faced criticism for their subpar service and lack of customer-oriented innovation.
Rebranding as Newfold Digital
In a recent move, EIG has rebranded itself as Newfold Digital. This rebranding aims to create a fresh image for the company and potentially distance itself from the negative reputation associated with EIG. The new entity, Newfold Digital, is a partnership between Clearlake Capital and Siris Capital, combining the products of Endurance and Web.com.
Leadership Transition and Portfolio Strength
As part of the rebranding process, Sharon Rowlands, the CEO of Web.com, will take over as the CEO of Newfold Digital. This leadership transition is seen as a positive move, given Rowlands’ industry experience and track record. In a press release, Rowlands emphasized the portfolio strength of the new entity, highlighting the commitment to helping small and medium-sized businesses establish themselves online.
The Momentum for Consolidation
The rebranding of EIG as Newfold Digital is just one example of the ongoing consolidation in the web hosting industry. Companies like Clearlake Capital and Siris Capital are actively involved in acquiring and merging web hosting companies to create synergies and optimize product offerings. This consolidation trend indicates that more changes and mergers could be on the horizon.
The Future of Newfold Digital and Web Hosting Industry
While the rebranding of EIG as Newfold Digital brings about changes in the web hosting landscape, the future remains uncertain. It is yet to be seen how Newfold Digital will address the issues associated with EIG’s hosting companies and whether they will prioritize customer satisfaction and innovation. As a web hosting customer, it is essential to stay informed and explore alternatives that prioritize customer-centric services.
The Importance of Customer Feedback
When considering a web hosting provider, it is crucial to take into account customer feedback and reviews. Platforms like the Better Business Bureau can provide insights into the experiences of other customers. While EIG has an A+ rating with the BBB, it is important to note the significant number of complaints related to advertising/sales, billing/collections, and product/service issues. Reading and evaluating customer feedback can help you make an informed decision.
Conclusion
The rebranding of EIG as Newfold Digital marks a significant shift in the web hosting industry. The consolidation of hosting companies under EIG’s control has raised concerns about competition and customer satisfaction. As a web hosting customer, it is essential to stay informed, explore alternative hosting providers, and prioritize customer feedback when making decisions. The future of Newfold Digital and the web hosting industry remains uncertain, but by being proactive and well-informed, you can make choices that align with your hosting needs and expectations.