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  1. #1

    INC 500 list of 500 fastest growing companies includes 4 web hosts you'll recognize

    Just picked up the INC500 magazine on my flight home yesterday, and noticed a few companies on their list of 500 fastest growing private companies, that everyone here should recognize:

    Rank#25 -- SingleHop -- 7,304.7% 3 year growth rate -- $12.6 million 2010 revenue -- 43 employees - founded 2006

    Rank#254 -- WiredTree -- 1,256.6% 3 year growth rate -- $4.3 million 2010 revenue -- 21 employees -- founded 2006

    Rank#277 -- Softlayer -- 1,178% 3 year growth rate -- $278.8 million 2010 revenue -- 550 employees -- founded 2005

    Rank#298 -- Linode -- 1,087.4% 3 year growth rate -- $10.7 million 2010 revenue -- 19 employees, founded 2003
    Phoenix Dedicated Servers -- IOFLOOD.com
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  2. #2
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    Yea saw this a few days ago . Pretty impressive on the amount of employee's on WiredTree & Linode.

  3. #3
    Not surprised one bit either. Congratulations to them!

  4. #4
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    Wow, thanks for sharing Gabe! Interesting statistics there.
    Jason Canady
    Unlimited Net, LLC AS11990
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  5. #5
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    I expected Softlayer on there and figured liquidweb would be but I guess not. Never expected wiredtree or linode on the list considering I haven't seen wiredtree mentioned much on the other forums I am on and figured linode was slowing down with customer gain.


    What are the average customer to employee ratio's people are typically going by with both managed and unmanaged providers. The employee amounts seem a bit low to me coming from the amount of staff I work with currently.

  6. #6
    Quote Originally Posted by techjr View Post
    I expected Softlayer on there and figured liquidweb would be but I guess not. Never expected wiredtree or linode on the list considering I haven't seen wiredtree mentioned much on the other forums I am on and figured linode was slowing down with customer gain.


    What are the average customer to employee ratio's people are typically going by with both managed and unmanaged providers. The employee amounts seem a bit low to me coming from the amount of staff I work with currently.
    It's a self reported list, so if you're not interested in the general public knowing your employee counts and revenue then you won't show up on the list. That would account for a number of companies not being present. If you look at the revenue per employee for these 4 companies, it seems to be $200 - $500k, which seems about right to me considering the cost of hardware, employees, etc. Much less than 200k in revenue per employee and you'd better be dealing with some pretty low paid employees to make that work in a capital intensive industry like vps and dedicated servers. Do keep in mind they only count "employees" and not contractors. It's not clear what effect any kind of outsourcing might have. Running your own datacenter might improve your margins, but it would also increase your employee-per-revenue value, because you would have staff instead of purchasing a service.
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  7. #7
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    From this information, we can congratulation to them. But we can't say they are biggest company around here. There are few companies that grew too fast but they keep statistics to themselves due to other company could compare to them.

  8. #8
    Quote Originally Posted by LM-AndrewS View Post
    From this information, we can congratulation to them. But we can't say they are biggest company around here. There are few companies that grew too fast but they keep statistics to themselves due to other company could compare to them.
    Totally agree. It's just nice to get some hard numbers on private companies since most hosting companies are private. Rackspace and Akamai are public so it's interesting to look at their numbers. For example, rackspace has a 4.5B market cap, 891M annual revenue, and 56M net income. For 100x annual net income, I'd sell my company any day
    Phoenix Dedicated Servers -- IOFLOOD.com
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  9. #9
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    Pretty impressive numbers there. No doubt its a solid teamwork and with right business plan.
    IPStrada When uptime counts.
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  10. #10
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    I have that issue. When I read it I only saw SingleHop... maybe I need to go back and read it again.

    Congrats to those mentioned!
    SysAdmin.xyz
    Having severs with customer data on it without proper monitoring is like having one night stand without using protections - eventually, there will be an 'oh s**t!' moment.

  11. #11
    Join Date
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    If you expand if to the Inc 5000 instead of 500, you'll see a bunch more hosting companies, including Steadfast and Carpathia.

  12. #12
    Quote Originally Posted by ameeriklane View Post
    If you expand if to the Inc 5000 instead of 500, you'll see a bunch more hosting companies, including Steadfast and Carpathia.
    Yes, but, to be on the inc5000 is more of a revenue requirement (must meet the minimum of $100k in year 1 and $2 million in year 3), as it only takes a 2% growth over 3 years to hit rank 5000, whereas being in the top 500 requires a pretty strong growth rate. Although I will gladly accept the additional information on revenue and employee count
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  13. #13
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    Very Impressive on the employees..thumbs up!

  14. #14
    Since you mentioned the 5000, here are the additional hosting companies I could find there:

    http://www.inc.com/inc5000/list/2011...y/it-services/

    Carpathia Hosting
    Rank#964
    Statistics
    3-year growth:316%
    2010 Revenue:$52.9 million
    2007 Revenue:$12.7 million
    Employees:109
    Employee growth:77
    Founded:2003
    Liquid Web
    Rank#1703
    Statistics
    3-year growth:157%
    2010 Revenue:$31.1 million
    2007 Revenue:$12.1 million
    Employees:255
    Employee growth:135
    Founded:1997
    Steadfast Networks
    Rank#2159
    Statistics
    3-year growth:116%
    2010 Revenue:$7.4 million
    2007 Revenue:$3.4 million
    Employees:30
    Employee growth:19
    Founded:2000
    The Go Daddy Group
    Rank#2215
    Statistics
    3-year growth:112%
    2010 Revenue:$741.2 million
    2007 Revenue:$349.6 million
    Employees:2900
    Employee growth:1525
    Founded:1997
    Hosting.com
    Rank#2601
    Statistics
    3-year growth:89%
    2010 Revenue:$61.9 million
    2007 Revenue:$32.7 million
    Employees:314
    Employee growth:78
    Founded:1997
    EdgeWebHosting.net
    Rank#2902
    Statistics
    3-year growth:73%
    2010 Revenue:$5.4 million
    2007 Revenue:$3.1 million
    Employees:30
    Employee growth:20
    Founded:1991
    Fibernet Corp.
    Rank#3736
    tatistics
    3-year growth:41%
    2010 Revenue:$3.7 million
    2007 Revenue:$2.6 million
    Employees:33
    Employee growth:9
    Founded:1994
    ServerCentral
    Rank#4701
    Statistics
    3-year growth:12%
    2010 Revenue:$17.1 million
    2007 Revenue:$15.3 million
    Employees:48
    Employee growth:21
    Founded:2000
    Looking at all of these numbers, it seems like the typical revenue per employee is around $200k, with some fully managed providers being as low as around $100k revenue per employee, and some companies managing close to half a million in revenue per employee. The effect of outsourcing (or not) is not clear here, as contract workers are not counted towards employee count.
    Last edited by funkywizard; 09-13-2011 at 08:29 AM.
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  15. #15
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    Very cool stats. I wouldn't say that I'm surprised, but I would never have thought.

  16. #16
    Impressive, Very Nice, Well done to those!

  17. #17
    Join Date
    Aug 2005
    Location
    Barcelona, Spain
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    Arvixe.com:
    Statistics
    3-year growth:1487%
    2010 Revenue:$2.7 million
    2007 Revenue:$167,276
    Employees:30
    Employee growth:29
    Founded:2003
    Industry: IT Services
    Industry rank:#17
    hi there!

  18. #18
    Join Date
    Dec 2002
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    592
    Makes me wonder, how they get to be able to hire several high level employees, in a very competitive market, where is hard to make a difference in the products.

    Maybe their customer base are corporations paying premium prices, and they got to them through direct sales?.

    Interesting

  19. #19
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    Quote Originally Posted by funkywizard View Post
    Just picked up the INC500 magazine on my flight home yesterday, and noticed a few companies on their list of 500 fastest growing private companies, that everyone here should recognize:

    Rank#25 -- SingleHop -- 7,304.7% 3 year growth rate -- $12.6 million 2010 revenue -- 43 employees - founded 2006

    Rank#254 -- WiredTree -- 1,256.6% 3 year growth rate -- $4.3 million 2010 revenue -- 21 employees -- founded 2006

    Rank#277 -- Softlayer -- 1,178% 3 year growth rate -- $278.8 million 2010 revenue -- 550 employees -- founded 2005

    Rank#298 -- Linode -- 1,087.4% 3 year growth rate -- $10.7 million 2010 revenue -- 19 employees, founded 2003
    http://www.inc.com/inc5000/profile/arvixe is another one... I believe (of course out of those who chose to participate in inc 500), we are the highest ranked shared hosting provider.
    Web Hosting @ Arvixe, LLC
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    arvand [at] arvixe.com

  20. #20
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    Quote Originally Posted by Arvand View Post
    http://www.inc.com/inc5000/profile/arvixe is another one... I believe (of course out of those who chose to participate in inc 500), we are the highest ranked shared hosting provider.
    Very well done.

  21. #21
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    Great publicity for the hosting industry.
    Darren Lingham - UK Webhosting Ltd. - (0800) 024 2931
    Tsohost.co.uk - Quality UK Windows and Linux hosting since 2003
    UK WordPress Hosting - Fast, easy, cloud based WordPress Hosting

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