The German Internet Service Provider (ISP), Artfiles New Media GmbH (est. 2000 in Hamburg), is establishing an U.S. subsidiary: Artfiles LLC. The new company will be placed in San Diego (CA), to offer its services in the United States and to provide local services to its European customers in the need of closer access to locations in the United States and surrounding regions. Artfiles LLC will offer development services, colocation services, web-hosting services, domain name registration, and project business to its customers. Artfiles LLC is the wholly owned subsidiary of the German company.
Artfiles New Media GmbH runs its business mostly on self-developed software for managing and supporting its customers. The company is generating most of its revenue in two segments:
- Web-hosting (includes email services and domain registration),
- Housing customer equipment in its own, 128-rack data center, while providing strong and reliable Internet connectivity
The company’s longstanding philosophy and strategy – which will be adopted by Artfiles LLC – is to vertically integrate as many IT-services as possible. This is in order to keep the chain of IT-hardware and software all under the company’s direct control. To stay competitive, Artfiles New Media GmbH reduces costs for operating systems and software by using already available open source software. Consequently, Artfiles is an almost pure Linux shop; the key personnel in the company hold a very deep knowledge in Linux and Internet protocol design.
In 2011, Artfiles New Media GmbH brought this philosophy to the next level by building its own data center in Hamburg. This move allows Artfiles New Media GmbH to offer even more services under one roof and maintain control over every aspect of this complex IT-services business. Due to this full control of every aspect Artfiles New Media GmbH can also offer better prices for its customers.
Artfiles LLC will use the same operational guidelines that have lead to the success of Artfiles New Media GmbH:
- Customer support is vital.
- Try to integrate as much of the supply chain as possible.
- Use Open Source software whenever possible.
- Rely on in house development rather than buying proprietary solutions.
- Avoid tight coupling between different services.
- Always have a backup solution and spare hardware at hand.
- Keep investments in hardware as lean as possible.