Jonathan, it is a pleasure speaking with you today. Congratulations on your new position with Codero. Your press release announcing your new position came with a few golden nuggets.
You made a few remarks in that press release I would like you to expand upon. First, you mention that many Enterprise customers are paying for colocation space and do not need to be. Can you tell us what is a better solution for Enterprise IT customers?
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Colocation offers the most robust hosting environment, but it can also be quite expensive. With the accelerated velocity of enterprise innovation and data capture, we believe that traditional colocation becomes cost-inefficient for enterprise customers at a certain point and that enterprises will look for alternatives. Based on our discussions with enterprise customers, we think we are close to that tipping point.
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Most IT managers are hesitant about outsourcing their environments because of job security concerns, security concerns, and lack of control. How would you address these concerns?
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There is tremendous pressure on IT managers to move to cloud hosting in order to reduce costs. But cloud hosting isn’t right for all types of data, nor is it always the most cost-effective. Our approach is to stand with the IT manager and help integrate the right solution for them, regardless of which colo or cloud vendor they choose. Our plan is to stand with the enterprise and help IT managers optimize their hosting infrastructure with the blend of security, control, and cost that is right for their businesses. We think that’s unique in the market because we are focused on what’s right for the enterprise, whether or not it includes Codero.
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Also noted in your press release was the following: "We also see a natural progression toward margin compression in cloud computing. There is enormous opportunity for Codero to provide cost-effective hybrid infrastructure solutions with no capital investment or additional staffing, so that our customers can allocate capital and management to the growth of their core businesses.”
Can you expand upon this statement and provide insight as to where Codero is headed with its' cloud offerings?
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Cloud is synonymous with “efficiency,” yet cloud hosting can also be very expensive. Despite industry efforts to build more value and features into cloud, we believe that this unnatural paradox isn’t sustainable. Codero has been on the sidelines of cloud hosting for a while, and we have watched others very closely. We see the cloud market maturing rapidly over the next 12 months. We think we are timing the market shift right, and we know that we can be very cost competitive.
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While there are a lot of new idea's on the future direction of Codero - what has Codero done right? What existing platforms and services will you be improving and expanding?
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The most important thing we have done right is to recognize that Codero has grown because our customers have grown and taken us with them. Recently, we migrated a few thousand of those customers to our Phoenix data center with eye-popping customer retention rates. Today we are making that strong foundation stronger by adding customers profitably. Tomorrow we are focused on meeting the evolving needs of our customers by helping them buy only what they need and pay only what they should.
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Beyond the expansion and addition of existing products, what other changes will be coming to Codero?
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You will see an expansion of our partner relationships, both horizontally across hosting companies and also vertically within market segments. Some of these “frenemy” relationships may be surprising. But companies that succeed long term stick to their knitting and focus on efficiency. We plan to do just that.
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