Milan, 4 September 2019. Global web hosting market is experiencing a major change, with providers all over the globe being forced to keep up with the competitive pricing set by the major players. While web hosting market puts forward a challenge on local hosting providers, communities often prefer local services due to a variety of reasons.
One of the examples of successful local web hosting companies is DHH Croatia. We talked with Uroš Čimžar, the interim CEO of DHH Croatia. He told us a bit about what happened in the company during the Q2 and also shared some exciting news with us.
Please tell me how did Q2 of 2019 go for DHH Croatia?
Uroš Čimžar: “More or less a year ago we spun-off Sysbee from DHH Croatia. As a result, we had two companies, both controlled by DHH. On one side, there is Sysbee, which is the Croatian company dedicated to managed hosting. On the other side, we have DHH Croatia (operating under the brands Plus Hosting, Studio4Web, InfoNET). It is the company dedicated to the more traditional mass hosting business.
In Q2 2019, the business of DHH Croatia showed a little decrease in the bookings (-1%). If we analyze the quarter in-depth, we see that the core business (ref. the sale of domains and shared hosting products) went pretty well, indicating healthy growth and a good renewal rate. On the contrary, the high-end business (ref. the sale of VPSs and dedicated servers), which has been mostly moved to Sysbee, decreased in DHH Croatia, and we decided to restructure this product line to make the whole process more efficient so to make a clear distinction between the two companies.
Last but not least, in Q2 of 2019, after having completed the first step of the consolidation activities of the local market in Croatia (thanks to the 3 acquisitions that we executed in these years), and after having directly managed the company from the holding thanks to the employment of one of our directors as an interim CEO, we decided to appoint a new – dedicated – leader in order to manage this new development phase of the company lifecycle.
We started a talent scouting process, and this resulted in us finding the new CEO Mr Veljko Drakulić, which started in his position in Q3.
So it was quite an eventful quarter for DHH Croatia.”
I am aware that DHH Croatia has worked on the quality review project earlier this year in order to improve its churn. Did this project bring any results in Q2?
Uroš Čimžar: “Yes, it did. Since when we started this project we had a “zero churn” rate connected to the quality of service in Q2 in our enterprise customer base (VPSs and dedicated server business line), so we are very satisfied and consider this a very good result. We will go on investing in this direction also in the future.”
What plans does DHH Croatia have for the upcoming months?
Uroš Čimžar: “As far as my discussion with the new CEO went I can say that he will definitely bring more sales focus to the company. I believe this will result in identifying market needs and introducing the services and products the customers want.”