Online Tech, a data centre operator, announced yesterday that it sold its web hosting division to IGD solutions, which is a full service company that offers development, hosting, and website design products for small-midsized businesses.
The news comes soon after Online Tech launched a new data storage solution online known as the OTVault, that can backup a large volume of data securely online.
Online Tech stated that the decision to sell its web hosting business of 15 years came with the newly defined goal of focusing on its managed and collocation server business which products such as OTVault are aimed at.
In the past five years Online Tech has progressively been shifting from a web hosting solutions provider to the management of multi-server environments and software provider for service companies.
According to the company, the rapid growth in these sectors has helped it become the largest managed data centre operator in the US state of Michigan.
Even with this growth, the company stated that the hosting business only brought in a small amount or revenue, making it expendable as the focus and goals of Online Tech shifted.
President of Online Tech, Mike Klein, stated that the company wants to focus on the management needs of email hosting and website clients and to do so it cannot focus on competing with web hosting companies.
The news should not be too disappointing to Online Tech’s old web hosting customers as they will gain services such as development, website application design, and search engine optimization from IGD Solutions.
The transfer cost IGD solutions around one million dollars and involved the sale of 150 websites.
Category: General Hosting
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