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An Update on New TLDs

new top-level domainsEarlier this year, we set up an informational page detailing our position and outlook on the topic of new TLDs. Since then, and particularly since the conclusion of ICANN’s 46th international meeting last month in Beijing, we have received many inquiries from resellers about our plans for this exciting development. As a result, I thought it would be a good time to address some of the frequently asked questions we are receiving.

What do the current launch timelines look like for new TLDs?

We believe the most optimistic view currently puts the first TLDs live and launching their sunrise phases in the third quarter of 2013.

Most applicants are currently being evaluated by ICANN. Exactly when a specific extension will become available depends on several factors:

  1. Draw number: in December 2012, ICANN conducted a lottery draw to determine the priority by which each application would be evaluated. Lower numbers were to be evaluated first, and that process is now underway.
  2. Objections and contentions: extensions with multiple applicants, third party objections or intervention from ICANN’s Governmental Advisory Committee can expect to take longer to work through the evaluation process.
  3. Desired launch date: Once a new TLD has been approved by ICANN, it does not necessarily have to launch immediately. An approved applicant may elect to launch their extension at a later date once approved.

The net result of this is we expect extensions with no objections and only one application to launch first; many of these are Internationalized Domain Names and geographic/regional domain names.

What extensions are you planning to carry, anyway?

Unfortunately, it’s still a little bit too early to tell. That said, there are some high-level things we can say at this point:

  • We are actively evaluating each extension to determine which would offer the greatest business potential for our reseller network.
  • We will engineer to every requirement and protocol so that you can manage them all exactly the same way whenever possible using our API and control panel.
  • We will give you as much notice as possible regarding the launch of the TMCH, the extensions we plan to launch, and what kind of launch support to expect.

We will relay more details about what extensions will be going live when as we get them.

What about the Trademark Clearinghouse (TMCH)?

The TMCH will be an important part of the launch process. Every extension will be required to offer a sunrise period; if you are thinking of securing any names during this phase, want to protect any trademarks your company may have, or want to do the same for your customers, you’ll want to start thinking about the TMCH.

The purpose of the TMCH is to accept and validate records of registered trademarks, to add them to a central trademark database, and to subsequently a) allow them to be registered during the sunrise phase, and b) notify potential registrants during the general availability phase that the name is a registered trademark (and inform the trademark holder).

All trademark holders will be able to provide their trademark details to the TMCH via OpenSRS and its resellers. As a result, we expect to support the sunrise and landrush phases for many extensions.

While we’re not quite at the starting line for launching new TLDs yet, we’re getting close. Expect many updates in the coming months about the launch of new gTLDs. Stay tuned.

New gTLDs and OpenSRS

By now you’ve heard about the new gTLD program in the works at ICANN; concerning the text right of the dot. It has been in the works for quite a while now and looks like it will be another year or two before all the dust settles on the initial 2,000+ applications. So far we haven’t really talked about it, unlike some of the other registrars, because frankly there isn’t a whole lot of actionable news yet to share. We have however been following the developments quite closely, and like the rest of our domain business we’re going to bring our resellers as many of the new public gTLDs as possible.

In the meantime, we’ve set up a new page on the site explaining our position and outlook, along with a high-level overview of the roll-out timeline. We’ll be updating the page as new major developments come out, and when we get closer to actually having a new gTLD in the OpenSRS platform we’ll make sure you know about it in advance. We also invite you to hop into our community forum and ask us and the community any questions you have about the new gTLDs.

Which Site Seal do People Trust the Most? (2013 Survey Results)

We just found some interesting third-party research from the Baymard Institute regarding consumer’s perceptions of SSL and Trust seals. The survey, from January 2013, specifically focused in on e-commerce websites and gave the following results, showing Trust seals outpacing all of the SSL seals with the exception of Norton.

Its an interesting article and I recommend clicking through to read more about the results and some of the implications. Including their suggestion sites show multiple seals to increase perceived site security; while also of course improving site security.

Survey of SSL Seals

The platform: key to the hosting sector’s future

Editor’s Note: This is the latest in a series of guest posts by Phil Shih, founder of Structure Research.

The hosting business is young and has a bright future ahead of it. But the market is getting tougher and big names like Amazon, Google and Microsoft are circling the sector. What can hosters do to fend them off? What are the keys to competing and winning long-term?

platformsThe best place to find the answer is to look at the sector’s success stories. In the cloud we only need to look as far as Amazon Web Services. In dedicated hosting SoftLayer went on a massive run with its automation mantra and in shared hosting we have seen hosters succeed by unlocking the up-sell challenge. What do these three success cases have in common? They were driven by a platform.

What is a “platform”?

What do we mean by a platform? In a nutshell, a platform is a unified and consolidated infrastructure delivery system built on a single back end (provisioning, management and billing) and consumed by the end user on-demand and in a highly automated fashion.

Amazon’s platform might not be the easiest thing in the world to use but for technical users it is a highly cohesive set of virtualized infrastructure services available through a single set of APIs. SoftLayer does the same but with a much better user experience and for a much wider range of infrastructure types (dedicated, virtual, cloud). And in shared hosting the providers that have prevailed have grown ARPU by enabling existing customers to easily buy additional services. A good example of a platform in the shared hosting market is Parallels Automation, which is user by hosters to deliver hosting infrastructure and SaaS applications from one back-end with a single front-end user experience.

Why Platform?

Why is the platform so crucial? Because it is the foundation of the two main ingredients for hosting success: backend efficiency and an enjoyable end user experience. Backend efficiency translates into margins. And margins mean more available resources for investment in marketing, customer support or product development. An enjoyable and efficient user experience means happy customers that renew and buy more services. It also means easier and faster up-sells. All this translates into margin and higher ARPU, which reinforces customer stickiness.

Make no mistake. The platform is the key to the sector’s future. Hosters have to continually be ruthless about efficiency and margins and the platform ensures that. There are well-resourced challengers encroaching on the sector and hosters will not be able to leave anything to chance. With an increasingly competitive landscape and tightening prices hosters will also have to boldly differentiate. The platform is uniquely positioned to solve that problem by creating user experiences that convince customers to eschew other options.

Platforms are not a new thing and they are far from revolutionary. But the sector will need to continually perfect and refine them in order to keep the challengers at bay. For those hosters with messy and legacy-oriented backend systems they should be thinking now about how to integrate them into a platform. The good news for hosters is that there are few fundamental game changes in hosting. The sector moves at a deliberate and evolutionary pace. There is time for hosters to get this right and remain a viable and valuable option for infrastructure service delivery.

Verisign and the US Department of Commerce – Our Take

This morning, it was announced that Verisign and the US Department of Commerce had come to an agreement that allows Verisign to continue to operate the .com domain for another six years.

What was missing from that contract was the hot topic of conversation this morning – Verisign no longer has the right to four price increases of 7% over the term of the agreement. In other words, .com domains will likely remain prices at $7.85 until November, 2018 when the new agreement comes up for renewal again.

Verisign does have the right to increase prices if they can prove “extraordinary” expense resulting from and attack or threat of attack on the security or stability of the DNS. Any price increase would require Verisign to prove that the increase served the public interest before the Department of Commerce would approve.

Verisign could also seek a price increase if it could prove that market conditions no longer warranted the new restrictions that are put in place with this agreement. Again, that would require Department of Commerce approval.

Tucows’ Take

Elliot Noss, Tucows President and CEO, says that the new agreement between the Department of Commerce and Verisign “rights a wrong in the last contract.”

Tucows has been very outspoken about .com pricing, and we were clear at the time of the last renewal that we did not believe Verisign should have been given the right to price increases.

It’s good news for registrants and the Internet as a whole.

Elliot also suggests that the new contract could even turn out to be good for Verisign going forward. The previous contract provided them with an opportunity to raise prices. As a public company with a fiduciary responsibility to maximize shareholder value, Elliot notes that investors, who often think in the short term, would put immense pressure on Verisign to exercise those price increases.

He goes on to suggest that having the option to raise prices four times in the next six years may have turned into a competitive disadvantage for Verisign given the new gTLDs coming online within the next 12 to 18 months.

By not having price increases available to them as a way to grow revenues, Verisign is will be driven to more efficiency and innovation. Certainly, the conference call Verisign hosted this morning featured a lot of talk of innovation, patents, and the addition of new value-added and revenue generating services like Distributed Denial of Service attack protection.

One thing is for sure, and perhaps this is the most important part of the contract extension announcement: Verisign continuing to be the operator of the .com extension for the next six years is great news for everyone. Verisign has proven itself to be an exceptionally good operator of the root. From a technology and service perspective, .com is clearly in good hands.

You can read the US Department of Commerce statement here.

[cross posted from the Tucows blog]

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