Top 100 CEO Interviews
Issue No. 28 - April/May 2006
Hostworks builds global business
In a bunker-like structure hidden from Findon Road by gum trees is one of the best connected buildings in Australia.
The sprawling structure supports an economic nervous system that delivers services and collects revenue for a myriad of industries globally.
From entertainment and finances to sports and car insurance, this high-security data centre provides the electronic heartbeat for organisations active throughout Australia, the Asia-Pacific region and the world.
Dozens of skilled staff use state-of-the-art technology to support this international customer base, generating a multi-million-dollar turnover, strong growth and recurring profits.
Even more remarkable is that less than a decade ago, its entire staff could fit into a tiny kitchen at the back of a former Salvation Army hall on Rundle Street.
Hostworks Group Limited, an ASX-listed firm, wins most of its business from customers in Sydney, Melbourne and Brisbane, but its headquarters and major data centre are in Adelaide.
Telecommunication Media Technology Analyst at BBY Limited, Ms Bei Hu, predicts strong and profitable growth for Hostworks.
“As more companies need to use critical applications, Hostworks is likely to get the lion’s share of this segment because when people think of critical application management, they think of Hostworks,” she says.
“Also there is a buoyant market for Internet advertising with at least 20% growth in online advertising this year. Another new area for them, ASP (Application Service Provision or “software as a service”) is also likely to grow as more companies move online.
“With growth in demand, their revenue will continue to grow, but that does not mean costs will continue to grow. That means continued improvement in EBITDA.”
Hostworks managing director Marty Gauvin, yet to turn 40, started the company in 1999 after spending two years building a skilled team and infrastructure within the Ngap...
