Enom 2013 Annual Report Download - page 10

Download and view the complete annual report

Please find page 10 of the 2013 Enom annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 124

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124

Our long history as a registrar provides us with unique insight and gives us the opportunity to create a registrar-friendly registry service—one
that greatly simplifies the technical integration, customer support and business requirements for registrar partners.
We have also licensed our registry platform and certain related services (which we refer to as our back-end registry platform) to Donuts as
part of our strategic alliance with them. To date, our back-end registry platform has powered the launch for over 60 ne w gTLDs and over
200,000 domain name registrations.
Aftermarket and Other Services
We have also developed several proprietary service offerings designed for marketplace participants to buy and sell higher-value domain
names.
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, Redis, 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. Enterprise class storage systems provide redundancy in order to maintain continued and seamless system
availability in the event of most component failures.
Our data centers host most of our public-facing websites and applications, as well as many of our back-end business intelligence and
financial systems. Some of our websites are hosted with a third -party cloud hosting provider. Each of our significant 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.
International Operations
We currently have international operations in Buenos Aires, Argentina and Dublin, Ireland. Our Buenos Aires office provides support to
our international efforts relating to our content and media service offering, which currently consists of eHow en Español and eHow Brasil
(Spanish and Portuguese language sites that target both the U.S. and the worldwide Spanish/Portuguese-speaking market), as well as eHow UK
and eHow Deutschland (eHow sites that we have launched in the United Kingdom and Germany). Our operations in Dublin primarily consist of
the customer and technical support, quality assurance and marketing functions for our registry business, as well as providing similar services for
our back-end registry platform customers. In the future, we may provide similar customer and technical support and quality assurance services
related to our registrar business from our Dublin location, which we established in late 2012. We also have operations in George Town, Grand
Cayman, Ottawa, Canada, and Queensland, Australia, each of which relates to our domain name services; in London, England relating to our
Pluck offering; and in Toronto, Canada relating to our CoveritLive offering. For each of the years ended December 31, 2013, 2012 and 2011, we
derived less than 10% of our total revenue from our international operations. For information regarding risks associated with our international
operations, see “Risk Factors.”
8
1
Auctions:
We own 50% of NameJet through our joint venture with Web.com. NameJet offers domain name auction services to domain
name buyers, brokerage services, registrants, registrars and registries, providing a secondary market for the purchase and sale of domain
names. NameJet's market-tested auction platform has sold more than 400,000 domain names over the past five years. The NameJet
platform provides easy-to-use tools to list, monitor, bid and transfer domain names in a reliable and trusted environment. Backorder
services enable customers to identify and acquire domain names that have expired or are about to become available.
1
Domain Name Brokerage Services:
Our domain name brokerage service acquires and sells high-value domain names on the open
market for third parties as well as for our portfolio of domain names. Utilizing our extensive marketplace experience and proprietary
techniques for discovering, analyzing and marketing high-value domain names, our domain name brokerage service connects domain
name buyers with domain name sellers and negotiates transactions on behalf of either party. Individual domain names and substantially
sized domain name portfolios are sold through our direct sales organization providing these brokerage services, typically for a
commission earned upon successful completion of the transaction.