01|14|2011 04:41 pm EDT
According to a report issued by Netcraft Ltd., a leading industry analyst, Go Daddy now issues approximately 50 percent of net new SSL certificates. The report also cited “strong progress” for Go Daddy’s Extended Validation SSL certificates, which more than doubled in market share over the past year, rising from 4.2 percent to 9 percent.
“It’s almost laughable! Symantec, who purchased VeriSign’s SSL division, boasts about how they’ve ‘slashed‘ prices, but their cert is still three times the price of a Go Daddy cert,” Go Daddy CEO and Founder Bob Parsons pointed out. “Our certs do the same thing, plus Go Daddy’s world class service is every bit as good as their paid service and unlike theirs, our telephone service is available 24 hours a day, free of charge. Of course our market share is growing!”
[via Press Release]
Please see our Editorial Commentary by Frank Michlick after the jump.
This probably explains Verisign’s decision to sell their SSL & Security Units including the Verisign, Thawte and Geotrust brands to Symantec, which is a great fit as a buyer. Over the past years I have been wondering how Verisign would be able to maintain the high price point of their premium brands Verisign & Thawte over the next years – it appears they have lost large parts of the market share already, at least when it comes to newly issued certificates.
I’ve always been fascinated by the SSL business, since the actual cost of the product is not in the signing of the certificate, but mostly in the validation of the entity that buys it and even that has been largely automated by the “whois validation” certificates. I’ve thought of it as a money printing business, they main challenge in it being to make sure that other software vendors accept your certificate – more of a political than a technical challenge.
The margins in this business certainly are bigger than anywhere else, but with the increased reach of competition and their certificates being accepted more and more a change in the market just a question of time, now that basically all of the providers have comparable reach.