Atlantic.Net Blog

Private Company vs. Belly-Up Cloud Hosting

Adnan Raja
by Atlantic.Net (180posts) under HIPAA Compliant Cloud Hosting

  • Financial Stability of Cloud Providers
  • Stats on Private Company Growth
  • Characteristics of Private Companies – Highlights
  • The Private Hosting Advantage

Financial Stability of Cloud Providers

This video – “Cloud Hosting Companies Are Dropping Like Flies” — discusses that many cloud hosting companies are shutting down. That makes sense. There has been a huge amount of money injected into the cloud hosting industry, which means there have been many startups. When it comes down it, a startup is a test business. They haven’t proven themselves capable of maintaining solvency. While you may want to run technological test projects yourself, you never want to serve as a guinea pig in an infrastructure experiment since that puts your online presence at risk.

In the video, we mention that we are a private hosting company. Why should you go with a private company rather than a publicly traded one? Several positive characteristics set successful private companies apart, as discussed by tech writer Bruce Upbin in the 2013 Forbes article “The Six Habits of Successful Private Companies”.

Stats on Private Company Growth

How fast do the largest privately held companies grow? According to figures collected in 2011, says Upbin, the largest private companies grew at 12%, doubling the pace of the S&P 500. KPMG and Forbes also released 2013 research revealing that almost 3 in 5 private outfits (58%) were forecast to expand at 6% or above during the following 12 months. What about the really great private companies? Of the 473 private company leaders interviewed, 1 in 10 said sales would accelerate at least 20% over the ensuing year.

Plus, private companies represent the vast majority of business. “Forbes … has … been covering non-public companies since its launch in 1917,” says Upbin. “We care about the health of private companies … because we sorta have to. They make up 99% of all businesses in the U.S.”

Characteristics of Private Companies – Highlights

According to Upbin, highlight benefits the most savvy private firms include:

Sense of identity & meaning

There is a huge body of research on the positive impact of meaning on productivity and job satisfaction. For instance, the identity and purpose of privately held Patagonia is sustainability.

Worker loyalty

The SAS Institute, a privately owned software company based in North Carolina, has grown every year for almost four decades. They succeed by investing in their employees. By bestowing incredible worker benefits – from paternity leave to on-site daycare, from a company swimming pool to free tennis lessons – the company has a 96.7% employee retention rate, way outpacing the tech industry average of 78%.

Yoga-like flexibility

Although 42 of the 220 largest private companies in the US are over 100 years old, they aren’t stuck. Hallmark is a great example, says Upbin: “[The company] started a line of Spanish-language greeting cards in the early 1990s, before Hispanic marketing really took off,” he says. “It diversified smartly into cable TV, embraced the Internet early with e-cards and introduced some of the first cards with sound chips.”

The Private Hosting Advantage

Do you want to partner with a company that has a sense of mission, high customer satisfaction, and can adapt to meet the ever-changing threat landscape, compliance guidelines, and business expectations? As stated in the above video, many businesses come and go, but Atlantic.Net has the characteristics of a solid and adaptive private cloud hosting company with state of the art state-of-the-art cloud server hosting. also offers managed, dedicated and HIPAA compliant cloud hosting solutions.

By Moazzam Adnan

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