Enom 2012 Annual Report Download - page 11

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6
Value-Added Services
In addition to domain name registration services, we also offer a number of other products and services designed to help
our customers easily develop, enhance and protect their domains, including the following:
• third-party website security services, such as Secure Socket Layer, or SSL, certificates;
• identification protection services that help keep domain owners' information private through our ID Protect service;
• web hosting plans for both Linux and Windows; and
• customizable email accounts that allow the customer to set up multiple mailboxes using a domain name.
We have also developed a number of proprietary services designed to help enhance visibility and help drive traffic to our
customers' sites, including business listing services to help our customers advertise through Whois lookup inquiries and Rich
Content, which allows website owners to add articles and videos from our content library to their sites. In addition, through
NameJet, a joint venture with Web.com, we offer domain name auction services that provide a secondary market for the
purchase and sale of domains.
Registry Related Services
ICANN recently authorized the launch of a program for the introduction of new gTLDs, defined as the "New gTLD
Program”. We believe that the New gTLD Program will present a variety of significant potential revenue opportunities
commencing in late 2013 or early 2014, including operating the back-end platform infrastructure for new gTLD registries,
owning and operating one or more gTLDs and becoming a registry in our own right, as well as registering a greater number of
domains over time through our existing wholesale and retail registrar channels. We expect to invest significant capital and
resources during 2013 preparing for the launch of the New gTLD Program. These expenses include enhancing our registrar
platform to accommodate the anticipated increase in domain registrations.
During 2012 we submitted 26 gTLD registry applications to ICANN under the New gTLD Program. In addition, we
entered into a strategic collaboration agreement with a third party, Donuts Inc., pursuant to which we share equal rights to an
additional 107 gTLD applications. We have also entered into a registry services agreement to provide registry back-end
services to Donuts Inc., and will continue to market registry back-end services to the industry.
Technology
Our technologies include software applications built to run on independent clusters of standard and commercially
available servers located at co-location facilities throughout North America and Europe. We make substantial use of off-the-
shelf available open-source technologies such as Linux, PHP, MySQL, mongoDB, Memcache, and Lucene in addition to
commercial platforms such as Microsoft, including Windows Operating Systems, SQL Server, and .NET. These systems are
connected to the Internet via load balancers, firewalls, and routers installed in multiple redundant pairs. We also utilize third-
party services to geographically deliver data using major content distribution network (“CDN") providers. Virtualization is
heavily deployed throughout our technology architecture, which affords scaling dozens of media properties in an efficient and
cost effective manner. We also utilize enterprise class storage systems combined with critical services to provide redundancy in
order to maintain continued and seamless system availability in the event of most component failures.
Our data centers host our various public-facing websites and applications, as well as many of our back-end business
intelligence and financial systems. Each of our significant owned and operated websites is designed to be fault-tolerant, with
collections of application servers, typically configured in a load balanced state, in order to provide additional resiliency. The
infrastructure is equipped with enterprise class security solutions to combat events such as large scale distributed denial of
service attacks ("DDoS"). Our environment is staffed and equipped with a full scale monitoring solution, which includes a
Network Operations Center that is continuously staffed.
Customers
We currently deploy our platform, including our content creation and distribution platform and our suite of social media
tools, to website publishers and brand advertisers, and our Registrar products and services to resellers, including large e-
commerce websites, Internet service providers and web-hosting companies and to retail consumers. Our top three Registrar
customers, in the aggregate, represent approximately 9% of our total consolidated revenue.