Web hosting firm spends $45M on upgrades

Linode, a company that hosts websites for companies and individual developers, has just paid out $45 million, to upgrade its data centre hardware.  With the view to help it compete with younger upstarts.

Linode does not want to see business slide away to hosting competitors or to infrastructure-as-a-service (IaaS) cloud providers like Amazon Web Services, which offer extensive configuration, loads of pricing options and frequent product rollouts.

In a bid to compete, every new server Linode offers now contains a solid-state drive, which provides faster retrieval of data than hard disk drives.  Each one packs twice as much memory as before and can handle 40 Gb of network throughput.  Last year the company splurged on expensive switches from Cisco to boost network speed, but this outlay is considerably more extensive.  Like other providers of virtual private servers including; HostGator and DreamHost –  Linode can fit well for developers’ one-off projects, or small and medium-sized businesses.

It’s still unclear how much Linode’s newest investment will slow the rise of hot hosting companies like DigitalOcean, which have offered lower prices for years – with Linode only just price matching now.

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Image by PLeia2

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