SWsoft Completes $1 Million Linux Infrastructure Deal With Major US Internet Hosting Provider

February 6, 2003
Linux Continues to Beat Windows in Internet Hosting Provider Market as FeaturePrice Moves to SWsoft’s Virtuozzo OS Virtualization and HSPcomplete Hosting Automation Systems to Offer Businesses Linux Virtual Private Servers

S. San Francisco, Calif., January 21, 2003 – SWsoft, Inc., leader in hosting automation and enterprise server software (www.sw-soft.com), today announced the deployment of $1 million of its Linux OS virtualization and hosting automation software and services by FeaturePrice, joining the over 100 Internet hosting providers including New Dream Networks, Hostmania, Servercentral, and Catalog.com to deploy SWsoft’s Linux Virtuozzo product, showing increasing momentum for the widespread use of Linux OS virtualization among Internet businesses. These deals indicate that by the end of 2003, 1 million virtualized Linux instances will be live on the Internet, pushing virtualized Linux ahead of Windows as the computing paradigm moves toward a computing-on-demand model.

FeaturePrice is using Virtuozzo to create hundreds of mainframe-like partitions that run concurrently on commodity Intel servers. Each partition functions exactly like a standalone dedicated server and is sold as a Linux Virtual Private Server or VPS. IBM was the first to develop this method of selling Linux VPS services in 2002 when it offered hosted Linux on its zSeries mainframes and created greater public awareness of the concept with its $10B computing-on-demand initiative. Unlike IBM which runs Linux on mainframes, PowerPC servers and Intel servers, FeaturePrice runs Linux only on Intel-based servers and uses Virtuozzo to virtualize all the Linux instances.

FeaturePrice currently hosts the Internet sites for over 60,000 businesses such as DisneySites.com and Universal Studios. According to founder and CEO, Travis Johnson, “with Virtuozzo, FeaturePrice is able to offer a dramatically improved hosting service. Compared with the shared virtual web hosts sold by companies such as Dialtone, our VPS services have better flexibility, isolation, privacy, and security. HSPcomplete’s automation features and extensive control panels enable our customers to enjoy all the benefits of dedicated hosting without the hassle of managing the server, resulting in a much lower TCO for our business customers.”

Each FeaturePrice customer receives dedicated use of their own Linux environment and Apache server, the most popular web server in the world, which according to Netcraft is run on 66% of active web servers, compared to 25% for Microsoft’s ISS web server. According to Mandy Davis, Operations Manager for Netcraft, “the popularity of Linux in the Internet hosting business is increasing.”

SWsoft estimates that small to medium businesses (SMBs) are currently using over 100,000 Virtuozzo Linux-based Virtual Private Servers (VPS), each VPS with exactly the same functionality as a dedicated Linux server, but are easier to use than dedicated servers and have a lower total cost of ownership.

Internet businesses are using Linux because Linux makes them money. According to SWsoft CEO, Serguei Beloussov, “Although we will launch a Windows version of Virtuozzo in Q2 of 2003, we anticipate that Virtuozzo Windows will be used mainly by our enterprise customers. Linux Virtuozzo is the most efficient VPS technology in the world, allowing over 100 production Linux VPS to run concurrently on a single CPU Intel server with 2GB of memory. This efficiency makes it the only viable VPS solution for Internet hosting businesses looking for high profits and quick ROI. Virtuozzo is the only true VPS, the only one that make business sense.”

Thomas Strohe, President of Intergenia, one of the three largest hosting providers in Europe agrees with the potential to make money with Linux OS virtualization. “In one month we achieved return on our investment, covering all the costs for the hardware, bandwidth, marketing, and Virtuozzo software and servers. That first month, we signed up 2,000 paying business accounts for the Linux service.”

The dominance of Linux in the Internet datacenter makes sense to Alexey Kuznetsov, primary maintainer for the Linux networking code and SWsoft’s Chief Software Engineer, “Linux has inherent advantages over Windows for Internet datacenters. For the past 10 years, we’ve optimized and tightly integrated Internet protocols with Linux. I’m not surprised that Linux is beating Windows for high-end networking applications.”

Robert Crull, CEO of Catalog.com, the first company in the world to offer virtual web “shared” hosting, is an expert on adapting innovative technologies and turning the technologies into sellable services. “Catalog.com experienced tremendous growth when we pioneered shared hosting. However, over time, we noticed problems with the lack of quality of service guarantees for shared hosting and the limited flexibility. Although our dedicated servers sell well, the cost of management of the servers are a problem for many businesses. Virtuozzo solves these problems and we believe that VPS will be the next revolutionary service, similar in impact to virtual web hosting on Apache.”

Dallas Bethune, co-founder of hosting provider New Dream Networks, always knew that Linux would dominate hosting. “From day one we standardized on Linux. In the hosting business, almost all innovation comes to Linux first. Virtuozzo is another example of a technology that came to Linux first and may create a paradigm shift in the industry.”

About SWsoft www.sw-soft.com
SWsoft is a leader in hosting automation and enterprise server software (www.sw-soft.com). Since 1999, the company has focused on the development of its patent-pending Virtuozzo™ technology and the HSPcomplete full business lifecycle hosting automation solution. The only end-to-end solutions and services for hosting service providers, e.g. Internet data centers, application service providers, managed hosting providers, SWsoft's products deliver powerful, comprehensive solutions that power data center management, accelerate business and infrastructure operations and provide excellent return on investment.

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