Codero Boosts Growth by Expanding Cloud Services

By Laura Stotler

In just one year, dedicated hosting provider Codero has jumped from a flat growth rate to better than 20 percent year-over-year growth, with plans to expand its infrastructure. CEO Emil Sayegh joined the company at that time, and his efforts to expand their cloud portfolio have paid off well.

Codero's focus over the past year has been to expand cloud services to enable hybrid infrastructures and focus more clearly on customer service. During that time, they have grown from a dedicated hosting provider to a hybrid managed services provider (MSP), defying industry trends.

Just last month the company unveiled its MicroCloud product line, designed to offer affordable scale, optimized infrastructure and privacy for small businesses. The solution lets customers manage their virtualization platform directly to unify application workloads, while also optimizing their overall computing spend.

The offering is available in a number of hardware configurations with a choice of VMWare ESXi or Citrix Xenserver hypervisors. Codero will also expand the new line this year to add additional hypervisors and orchestration stacks.

“MicroCloud offers customers the flexibility of cloud computing in private, with 100 percent dedicated hardware," said Chandler Vaughn, SVP of product for Codero. "No matter how many virtual machines a customer launches on their infrastructure, the MicroCloud will always be at a set monthly price. Our goal at Codero is to enable customers to leverage the best of both virtualized and dedicated servers so that they can place their workloads on preferred platforms, all with the reliability and exceptional service Codero is known for.”

Sayegh commented that hiring Vaughn has been instrumental in the company's growth and expansion. “He’s an industry expert who knows cloud like no other,” said Sayegh. "Vaughn was a major part of hosting strategies at Rackspace and Sungard, and also headed the cloud computing institute at the University of Texas before joining Codero in September. We’ve made tremendous progress with cloud and automation since."

Codero now offers three lines of service with dedicated hosting, cloud hosting and managed hosting. The company will be focusing on additional cloud and managed services offerings this year. The service provider also has a loyalty program that acts like a corporate rewards program, in which customers earn points and may use them for services like migrations, upgrades or catchy products like t-shirts.

According to Sayegh, the company has shifted its market focus along with its business scope, targeting verticals like IT services, gaming, non-profits, resellers and online retail services. They now have about 4,000 business customers and three data centers in Chicago, Phoenix and Ashburn. The facilities are Tier III compliant, SSAE 16 certified, and SOC 2 Type II and SOC 3 audited.

"The vast majority of our customers are multi-server customers,” said Sayegh. “Even those single server deals are upgrading in the next six months to multi-device, multi-server. We have one of the lowest churns in the industry. Average customer life is about 3.5 years and we get very high customer satisfaction ratings.”

Edited by Brooke Neuman

MSPToday Contributing Editor

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