GoDaddy to No Longer Offer Cloud Services to Businesses

By | Oct 5, 2012

There is a lot to like about GoDaddy, and it has continued to gain popularity with small and midsize businesses for web hosting. However, a recent event has left some midsize businesses worried. The company has decided to eliminate their cloud computing product.

According to an email posted on GigaOM, GoDaddy CIO Auguste Goldman stated, "We are focused on SMBs and SMBs don't use this product the way we are offering it now. So, in the weeks ahead, it won't be a stand-alone product in and of itself." The email continued to say that the company would continue to develop cloud computing into their other products.

The GoDaddy servers that offered the product have already been removed, and for many midsize IT professionals this has become a concern. Could any cloud product be shut down overnight? How likely is it that midsize companies could lose the ability to access their data in a blink or an eye and be forced to find another quick and cost-effective product?

IT professionals have reason to be concerned. In the past few months several other companies have also eliminated their cloud products, including Zumodrive and Rackspace. Although most companies that eliminate these types of products give midsize companies fair warning and a little bit of time to move data, it still has some in the midsize IT community uncertain about the future.

Virtualization is quickly gaining popularity, and storing data remotely and accessing the data from all over is crucial for midsize businesses if they plan to stay competitive. It saves time and money and helps every aspect of a business run more smoothly in most cases. The real concern shouldn't be the cloud itself; instead, it should be in the companies that offer the services and products. Although many companies, like GoDaddy and Motorola (owner of Zumodrive), have tried (and failed) to enter the market, that doesn't mean there aren't good, solid, and dependable options for small and midsize businesses.

Midsize IT departments need to do their research and align products properly with their company's needs. Although many companies want cost-effective products, business owners need to realize you get what you pay for and paying a little extra for reliability may be necessary for many midsize companies. Midsize companies that put their trust in their IT team, not their accounting team, will likely find themselves with a variety of cost-effective, safe, and reliable products that help their business be more efficient and competitive.

This post was written as part of the IBM for Midsize Business program, which provides midsize businesses with the tools, expertise and solutions they need to become engines of a smarter planet. Like us on Facebook. Follow us on Twitter.

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