"Moving Forward Strategically to Windows Hosting"

A conversation with Julien Ardisson and Hannes Migga-Vierke of STRATO AG

Founded in 1997, STRATO AG offers Web hosting, domain and online shop services as well as servers and software-as-a-service solutions across six European countries from its Berlin headquarters.

Case studies provide technical decision makers with concrete examples of business problems being solved through the adaptation of technology. Life as a Web host is customer-driven and ever-changing. We chatted with Julien Ardisson and Hannes Migga-Vierke of STRATO to get their perspective on Web hosting.

Key Findings:

STRATO runs over four million domains on 35,000 servers in two state-of-the-art data centers. As the company continually expands its operations, it strives for economies of scale and increased performance that it passes on to its customers.

  • Windows Server 2008 is a major step forward as part of the hosting platform, particularly with regard to its focus beyond enterprise IT.
  • Customers respond well to Windows-based hosting because of its familiarity and long-term support.
  • The ability to run PHP-based applications on Windows is a major plus for STRATO.
  • The comprehensive Microsoft stack with integrated operating system, hypervisor, and management tools provides a significant virtualization advantage.
Questions:

Julien and Hannes, can you give us some background on STRATO and on your roles within the company?

Julien Ardisson: I'm the CTO of STRATO, and I'm responsible for our data centers and different product lines. My technical background is as a computer scientist, and I've been with STRATO for seven years.

Hannes Migga-Vierke: I'm responsible for our business products at STRATO

Julien: We are the second largest European hosting firm, with more than 1.3 million customers, and 4 million domains online. STRATO was founded in 1997, and we have been elected Web host of the year by a number of well-known computer magazines.

We operate across six European countries: Germany, Great Britain, France, Italy, Spain, and the Netherlands. Our product range includes Web hosting packages, domains, online shops, and both physical and virtual servers, as well as managed servers. We also offer a SaaS package called STRATO Company Portal for small to medium-sized enterprises.

What can you tell us about the balance of Windows versus other offerings in your hosting business?

Julien: For our dedicated servers, we offer Windows Server 2008, Windows Server 2003, or Linux. Our shared Web hosting platform is based on Solaris. We also offer Exchange Server hosting.

What led you to add Windows-based hosting to STRATO's offerings?

Julien: We launched the dedicated Windows-based hosting project on top of Windows Server 2003 and immediately saw great potential in Windows Server 2003-based hosting. Since then, we've seen Microsoft put a lot of effort into Windows-based hosting. We feel that it is important to offer Windows solutions to our customers as many of them are used to a Windows environment and want it on their server as well.

Would you say that Microsoft has made significant investments in making it easier to build out a hosting offering on top of Windows Server 2008?

Julien: Windows Server 2008 is a great step forward as a base platform for a hosting product. Previous versions of Windows Server were the regular enterprise IT-focused release, which could be modified via hoster-targeted license agreements to make it easier for hosters to deploy.

Microsoft has recognized that the hosting market is very important, and that Windows must also be designed and appropriately licensed to serve that market—not just enterprise IT.

Are some customers pre-disposed to buy Windows now that you offer it?

Hannes: Yes, some are. The main driving factor that leads customers to choose a Windows Server-based hosting solution in Germany is that they have the same user interface at home and on the servers they are supporting internally.

The customer also knows that Microsoft is supporting the operating system for more than just one to two years. The problem we have in Germany with Linux systems is that they are typically only supported for one to two years, and then advisories and security updates become limited.

With a Windows-based solution, they know that Microsoft will continue to support the platform for more than five years.

Given Microsoft's increased support of PHP-based solutions on Windows, have you seen any of your customers move in that direction?

Julien: We have the demand. The important thing for our customers is that if you buy a Windows Server 2008-based hosting package, you have the ability to run any open-source PHP based application on it.

How many of your servers are running virtualized, and what trends have you seen there?

Julien: Out of the 35,000 servers in our data centers, 14,000 are virtualized. Our virtualized server footprint is growing faster than our physical one, so there is a great deal of potential there both economically and ecologically. Obviously, one server shared by various people consumes less electricity than the same amount of physical machines—also thanks to a higher and more even work load. This pays off in our and the customers' wallets. In addition, saving electricity is beneficial for the environment.

Microsoft is able to provide STRATO a hypervisor that is already embedded in the operating system, and that gives Microsoft a great advantage over some of their competitors.

Are there reasons that you see the embedding of Hyper-V in Windows as a greater advantage than going with a KVM-based solution from Red Hat or a Xen-based solution?

Julien: The fact that the hypervisor, the operating system, and all of the management tools are integrated into one stack is a major advantage for Microsoft. This makes it easier for our customers and for us to manage an integrated Microsoft stack and makes it more cost effective to acquire it.

Any closing thoughts?

Julien: I think the most interesting thing for STRATO is to see how Microsoft continues to bring Azure to market. I'm also very pleased to see the progress that Microsoft has made in the hosting market in general.

Their progress is helping us out, because years ago, hosting was a niche market. Microsoft is helping to make it a mass market. Offerings like Azure are an opportunity for us to develop new products and a possibility for us to change to meet new needs.

Testimonials:
STRATO AG
Meet the Team:

Julien Ardisson, CTO of STRATO Rechenzentrum, born in 1968

Julien has been a STRATO board member since 2001. He received a degree in informatics at I.N.S.A. Lyons, France. He started his career as development engineer at Alcatel-SEL in 1991. In 1995, he became product line manager at TELES where he launched and developed the skyDSL technology.

Hannes Migga-Vierke, Product Manager, born in 1981

Hannes has been working for STRATO for three years where he is head of product management business products. Previously, he was a project manager at the communications department of DaimlerChrysler Financial Services. Hannes holds a B.Sc. degree in software engineering from Potsdam University, Germany.