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I Hope They Don’t Change Their Commercials…

By Brian | April 9, 2006 | Share on Facebook

GoDaddy, of risque superbowl commercial fame, has moved its Web Server farm to Microsoft technology, seriously messing with the market share data. The only sign as to why they made the change comes from the standard, double-speak from their COO:

“Microsoft provides an efficient and scalable operating platform, while also providing the performance needed to handle our extraordinary growth.”

Yeah, yeah, whatever. Sounds like code for “it works and its cheaper.” In any case, here’s an example where Microsoft is NOT the monopoly (or even the industry leader), competing in a well distributed market…

Topics: Tech Talk | 4 Comments »

4 Responses to “I Hope They Don’t Change Their Commercials…”

  1. Jeff Porten says at April 14th, 2006 at 5:42 pm :
    Seeing as how Microsoft got to post its biggest one-month gain from this (and I didn’t know that GoDaddy hosted so many sites), one wonders if “cheaper” is itself code for “outright bribe”.

  2. Brian says at April 15th, 2006 at 1:42 am :
    If you’re suggesting that Microsoft bought the business by reducing their prices, I would almost assume they did.

    But I’d also hasten to add that this is common practice and in no way immoral or illegal. Given the size of GoDaddy’s business, it was worth more to Microsoft than 20 companies of 1/20th the size. So, it cut its margins to win the business.

    That’s just good common sense…

  3. Jeff Porten says at April 15th, 2006 at 4:35 pm :
    Reducing prices to a negative number, I suspect. And no, I don’t think this is illegal or immoral, provided it doesn’t trip antitrust law.

  4. Brian says at April 17th, 2006 at 1:01 am :
    Well, I’d be shocked if they actually paid GoDaddy for the business, since GoDaddy would very likely have taken the servers for free….

    Also, I’m not an antitrust lawyer, but I don’t think discounts (even at negative margin, if you can justify a business case – which can easily be done here) violates antitrust law.