The Polish hosting company nazwa.pl (netart-group.com) has recently made headlines with its acquisition of two other hosting companies, atthost.pl and hostinghouse.pl. This series of acquisitions reflects broader trends in the web hosting industry and highlights strategic maneuvers by nazwa.pl to solidify its market position.
Market dynamics
Historically, nazwa.pl was among the top two hosting providers in Poland, competing primarily with home.pl (IONOS). However, over the years, they were overtaken by cyberfolks.pl, which has grown rapidly to become a leading player in the market. This shift underscores the dynamic nature of the hosting industry in Poland, where market positions can change rapidly due to strategic decisions, market trends, and customer preferences.
Industry trends and strategic positioning
There is a growing trend of consolidation within the hosting industry, with companies acquiring smaller firms to expand their customer base and enhance service offerings. This trend mirrors global movements where large hosting groups seek to establish a foothold in emerging markets.
Voices from the industry have indicated that nazwa.pl itself was reportedly in the process of being sold in the past. This underscores the company’s strategic flexibility and its experience in navigating complex business transactions.
Objectives
One of the primary objectives for nazwa.pl’s recent acquisitions is to increase its net churn rate, which measures the gain of new customers. In the competitive hosting market, merely increasing the Average Revenue Per User (ARPU) can have adverse effects on the number of active hosting services. By acquiring atthost.pl and hostinghouse.pl, nazwa.pl aims to boost its customer base without solely relying on increasing ARPU, which can drive away budget-conscious clients. Through these acquisitions, nazwa.pl is estimated to gain over 20,000 hosting services, significantly enhancing its market presence.
Moreover, these acquisitions serve as a testament to nazwa.pl’s capability to assimilate other hosting companies. This is crucial as large hosting groups in Europe are scouting for targets in Central Europe. They view this region as a springboard for further acquisitions, aiming to secure strategic control over the market. Nazwa.pl’s recent moves position it as a significant player capable of navigating and capitalizing on these market dynamics.
Customer reactions
As nazwa.pl integrates the acquired companies, there are already voices of discontent from the customers of the acquired firms. The implementation of processes known from nazwa.pl, such as issuing authcode only through requests signed with a qualified signature or sent via traditional postal mail, has sparked customer frustration. This indicates that while strategic acquisitions can bring growth, they also come with significant challenges in maintaining customer satisfaction.
Business context
The hosting industry is undergoing significant changes driven by digital transformation, increased demand for cloud services, and heightened competition. For nazwa.pl, these acquisitions are a strategic move to secure a larger market share and increase their customer base. However, the integration process needs careful management to ensure customer satisfaction and operational efficiency.
Conclusion
The acquisition of atthost.pl and hostinghouse.pl by nazwa.pl highlights the ongoing consolidation trend in the hosting industry. It also showcases nazwa.pl’s strategic efforts to enhance its market position and customer base in a highly competitive environment. As European hosting groups continue to seek key players in Central Europe, nazwa.pl’s recent acquisitions could pave the way for more significant industry shifts in the near future.
Nazwa.pl’s history, market strategy, and recent acquisitions illustrate a company determined to regain its footing in the Polish hosting market and to position itself as a leader ready to face challenges and opportunities.
