1&1's US Launch Promotion Shows Gains

German hosting giant 1&1 Internet’s offer of three years of free hosting helped its US unit gain 10.5K hostnames in November, with most coming through new domain registrations or migrations of hostnames parked at domain registrars.

1&1 US Hostname Gains, November 2003 This month’s hosting Hosting Provider Switching dataset shows 1&1’s American unit gaining 7.3K new hostnames, with another 3K-plus hostnames switching from other providers. The largest single chunk came from Go Daddy (683 hostnames), followed by EV1Servers, Network Solutions, Register.com and eNom. All are domain registrars except for EV1Servers, whose net loss to 1&1 likely represents a shift in hostnames registered by EV!Servers resellers, rather than a flight of dedicated server customers to 1&1’s shared hosting accounts.

Analysts and competing hosting companies have been closely watching the progress of 1&1’s promotion in advance of the company’s official launch of its US operation next month. 1&1 is the world’s largest web hosting company, with nearly 3.5 million hostnames, but is not yet a name brand in the US market.

Its pre-launch promotion - which offers new accounts three years’ free use of a 500-megabyte Professional Package normally sold for $29 a month - is designed to raise its profile in America and quickly gain a critical mass of customers. As part of the promotion, 1&1 is offering domains for $5.99 a year. The offer lasts until Jan. 14, at which time 1&1 is expected to roll out its paid hosting plans.

The table is taken from our Hosting Provider Switching Analysis, which identifies movements of sites from one hosting provider to another. The analysis is updated monthly and is available on a company license basis.