Milan, 4 September 2019. While the web hosting industry is undergoing some major changes at the moment, the CEO of mCloud, Bosko Radivojevic, sees it as a positive thing for DHH. He shared some insights into the current events happening in this rapidly growing market as well as in mCloud.
How did the Q2 of 2019 go for mCloud?
Bosko Radivojevic: “The quarter went well; revenues grew as projected. During the last quarter, we spent a lot of time “polishing” operations of plus.rs. At the moment, for the month of July, we are actually outperforming – we are getting 10% more revenues than expected. This appeared as a result of portfolio consolidation along with other important things like cancellation of free plans.
Mainly, during the second quarter, we were busy with the “housekeeping” of the merging process of mCloud and plus.rs. Technically, the merge happened on April 1st, but formally, we wrapped it up on April 24th.”
In April, you’ve managed to merge mCloud and plus.rs under one legal company. However, you’ve kept them as two different brands. How are you finding the structure so far? Did you initiate processes to facilitate the service provision under these brands?
Bosko Radivojevic: “Everything went well – we now have two offices in Belgrade and Novi Sad, with Novi Sad also seeing two new employees. We are now fully ready to expand our presence in the market.
In Q2, there were still processes to take care of on financial and technical side, but we’ve finished everything.”
Let’s talk about your advanced hosting project. You told me last time you are waiting for the migration of infrastructure to deploy the project. Please let me know if there are any updates regarding this initiative.
Bosko Radivojevic: “Currently, we are getting ready to publish a new offering – cloud services. These services are utilizing new infrastructure. Let me explain – previously when we wanted to offer our customers some predefined templates, we needed to create a template and then to maintain that template. That usually took us a lot of time and effort – creating a lot of templates in parallel is not easy.
As a solution to this problem, we were able to utilize a new technology, called “recipes.” With the recipe, we can provide a service to the client in a variety of ways. We created a total of 12 recipes, with a special recipe for containers. In the future, we want to introduce more services based on containers.
Thanks to these innovations, we are enabling our customers to have personalized services and it also gives them a feeling of “participation”, which works as a great marketing move for us.
Probably, we will launch all the offerings one by one starting from September.”
I recall you saying that you’ve put a lot of effort into promoting mCloud brand via different channels, including branded mascot and T-shirts. How the results have been so far?
Bosko Radivojevic: “Our T-shirts are getting popular! We’ve seen pictures of people wearing our branded T-shirts on festivals and on the seaside, which is nice.
As a part of the merging process of mCloud and plus.rs, we’ve performed a comparison between the brand awareness statistics of these two brands. For mCloud, we’ve received around 70% of brand awareness rating, while plus.rs saw only 11-12% of awareness rating. We believe that such difference in these statistics is due to the active approach of mCloud to marketing.
However, we see this result as an opportunity to develop the brand image for plus.rs via the same methods we used for mCloud.”
What are the plans of mCloud for the upcoming months?
Bosko Radivojevic: “I feel like we’ve been preparing for this quarter for a long time, so now we just need to “play the game” – we will roll out products one by one, analyze market reaction, see how competitors are reacting as well and adjust our actions based on that.
Currently, the web hosting market is largely affected by one of the private equity funds from UK – it purchased all of the major control panel players. This has prompted hosting providers to increase their prices – small hosting providers were affected the most.
Yet, I do not see this situation as a negative per se, as DHH can actually benefit from it. Now, hosting providers across emerging markets will see benefits of being a part of a larger group.
So, the upcoming months and the next year are going to be challenging, but interesting.”