This follows a market trend toward one-stop-shop capabilities and bundled marketing products. For hosting companies it’s a logical extension from Web sites to associated SEM services — especially those targeting resource constrained SMBs. This is similar to the logic behind the 2007 acquisition of Affinity Internet by Hostway.
The idea for a combined Hostopia/MerchEngines solution (besides eerily similar logos) is to offer it to local media companies that will resell it through their sales channels. Such companies include the usual suspects: newspaper, Yellow Pages, radio and TV networks.
“The gist of the vision from here is for Hostopia and MerchEngines to offer white-\ label Web site solutions and SEM solutions to local media companies,” MerchEngines CEO Andy Steuer told us. “By partnering with one vendor [Hostopia], the partner receives efficiencies in operating these businesses, while we can offer them competitive advantages with a combined product suite.”
Read the press release here.