Sunday, April 27, 2008

Google Daddy Would Kill Competitive Web Hosting

In my opinion, the worst thing that could ever happen for the web hosting industry as a whole would be if Google bought GoDaddy. Now before you write me off as being some crazy anti-corporation loon let me explain the web hosting industry’s doomsday scenario.

The Merger Begins

Lets say in this alternate reality, Bob Parsons (the man in charge over at GoDaddy) gets an offer he can’t refuse from the Google team. He decides to sell to Google for (well, insert large dollar amount here) and Google is now the world’s biggest search provider and the world’s biggest domain name register all in one smart business move.

A few months down the road, Google announces it will get into the web hosting game. They have the money, servers and resources to start doing serious web hosting at any given moment now. Some might say they already are with their page creator service - but I don’t really count that as it has yet to even really get any decent buzz. If they needed a base for it, they could always use GoDaddy’s hosting business as a starter. Yes, ladies and gentlemen we now have Google Daddy.

Google Daddy Takes Over Web Hosting

With their two tier plan, you can get unlimited disk space, bandwidth and resources for free. Then they charge you five dollars for a domain name and your web site is up and running. Where is the catch? Well Google’s main business is not search - it is advertising. To pay for the hosting, you will agree to put Google AdSense ads on your web site and split the profits with Google 50/50. They get half of your ad revenue (on top of what they take from AdSense profits already) and you get reliable free hosting.

The End is Upon Us

Over the next few months, web hosts would start to drop like flies. Nobody out there can compete with Google Daddy and in one year or so down the road (after that acquire the Planet, Rackspace and a few other dedicated server hosts) they control seventy-five percent of the hosting market. What Google was just a little over a year back for just search they are now for search, domain registration and web hosting.

That would be the ultimate doomsday scenario that would bring the web hosting world to its knees. Google Daddy controls the three things that pretty much defines the Web as we know it and there is not a major force that can stand in their way.

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