Archive for October 24th, 2007

Oct 24 2007

News Roundup from 10-23-2007


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Oct 24 2007

ISPCON Show Wrap Up - Part I

 

Last week’s ISPCON Fall 2007 in San Jose, California at the McEnery Convention Center offered a look at a number of web hosting initiatives and strategies, as well as great educational sessions for those running a web hosting business. Here is a brief overview of the event, with another installment to come shortly.

Although the foot traffic and attendance at the show was perceived as lighter than last year, the quality of the speakers was outstanding. Two of the highlights from the show were the keynote addresses. The first keynote was delivered by Mr. Dave Shaeffer, the Founder and CEO of Cogent Communications Inc. The company was founded in 1999 as a deep fiber and IP data-only network. Mr. Shaeffer described what Cogent currently sells as a “commodity”. He also pointed out that the Internet is the lowest cost network – and as such, it is deflating the other networks (lowering prices). Mr. Shaeffer launched into a very knowledgeable discussion of the current state of access network providers, and his take on the future of content providers and distribution networks. It is also impressive to note that Cogent handles a full 15% of all Internet traffic with just 450 employees.

The second day’s keynote was presented by Mr. Douglas J. Erwin, Chairman and CEO with The Planet.com Internet Services Inc. Mr. Erwin began his comments by reminding the audience that he has served just 500 days in his current position. He also declared that the “shared hosting business is under fire”, while pointing out that web hosting valuations have skyrocketed. Mr. Erwin also viewed that current data center climate as one of data center shortages. According to Mr. Erwin The Planet is looking for acquisitions, and also talent. Mr. Erwin noted that there is also a talent shortage in hosting at the moment. Another revealing piece of information: The Planet will spent $30 million in Capital Expenditures in 2007. A portion of these expenses are presumably related to the brand new worldwide headquarters being built in the former Houston Convention Center. This is to create an environment and culture where people run to work, and others want to join, according to Mr. Erwin. Overall a great and thoughtful keynote and one well worth attending.

Other notable web hosting presenters during the conference were: WHIR blogger, Mr. Tom Millitzer, President of New Commerce Communications. Mr. Millitzer built a fantastic presentation from his opening premise regarding selling an Internet company. He said, “Rule #1 – Be honest. Other than Rule #1 – there are no rules”. He also mentioned his 5 minute rule (does that mean there is more than 1 rule?) which essentially says that a CEO or other decision maker must make an informed decision RIGHT THEN – when considering a purchase (within 5 minutes). Tons of great tips and things to think about. According to Mr. Millitzer there is one thing that tanks deals, greed.

WHIR blogger, David Snead, Attorney at Law, W. David Snead P.C. delivered a virtual classroom session and free law lessons while delivering his presentation entitled, “Negociating the SaaS Minefield”. What struck me about Mr. Snead’s session was the concept of “risk assessment” – and how each and every activity of a business can be reviewed and considered in light of its potential for litigation. He also delivered invaluable tips and information on what to look for in contracts and looked at hyperlinked Terms and Conditions. Basically a free hour with a high-powered web hosting attorney – well worth getting up early for!

Another WHIR blogger and favorite of the ISPCON audience who presented this year was Mr. Lou Honick, CEO of HostMySite.com. The topic of Mr. Honick’s presentation was how to increase your bottom line through strategic use of customer service. One of Mr. Honick’s core messages focused on the concepts of a “Product Oriented” company versus a “Customer Oriented” company. His examples of companies that fall into these categories – Microsoft (Product Oriented), Apple (attributes of both orientations), Amazon (Customer Oriented). Mr. Honick also drew in the audience by incorporating topical headlines from the day’s USA Today newspaper to illustrate his points. This was a well liked presentation judging by the attendance and also the vigorous Q&A session afterward. Great information that will grow a business.

In part II I’ll describe the exhibit hall and leave you with some comments from the exhibitors and attendees. Look for it soon!

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