Internet Service Providers start adopting logical virtualization technologies

Netcraft reports EV1Servers and now Go Daddy started using so called “virtual private servers (VPS)”, a logical virtualization technology provided by SWsoft with the Virtuozzo platform.

A single VPS can be dedicated to a single customer without wasting space, money, maintenaince time, employee, etc. with new physical servers, achiving an incredible VPS/Physical server proportion.


EV1Servers is expanding beyond its core niche selling discount dedicated servers, introducing virtual private servers (VPS), storage solutions and managed services. The changes at the “all new” EV1Servers are a response to the evolving needs of its customers, as well as tougher competition in the dedicated server market.
….
EV1Servers is forging boldly into the VPS market, a strategy that allows it to capture shared hosting customers looking to move up, while squeezing more revenue from each server. VPSes use “virtual partitions” that allow a single machine to be used by multiple customers, with better security than shared hosting but many of the features of a dedicated server. Marsh believes VPS is “poised to break open a new top end shared hosting market,” and has priced EV1’s offerings at $39 a month.

“We see our hosting company customers as the primary distribution channel for this product,” said Marsh. “In early October we will host a Virtuozzo training session for hosting providers who are interested in offering VPS hosting. We hope this will help jump start a new and potentially lucrative product line for these customers.”


Domain registrar Go Daddy has begun selling virtual private servers (VPS) and dedicated servers, continuing an expansion that helped it become one of the fastest-growing hosting providers of 2004 in our Hosting Provider Switching Analysis. The move comes as the Scottsdale, Ariz. provider is preparing a major publicity campaign to increase its visibility, kicked off by a Super Bowl ad.

Go Daddy is using SWSoft’s Virtuozzo to power its VPS offering, following in the footsteps of EV1Servers, which announced a major VPS hosting initiative in September. VPS uses “virtual partitions” that allow a single machine to be used by multiple customers, with better security than shared hosting but many of the features of a dedicated server. While it has been a pioneer in discount pricing of domains and shared hosting, Go Daddy’s dedicated server offerings start at $219 a month and VPS at $39.95 a month, well above the offerings of current price leaders in those categories.