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Go Daddy’s new billion-dollar business?

Kevin Murphy, January 25, 2011, Domain Tech

Go Daddy has officially unveiled its Premium DNS service, which will enable its customers to buy and use managed DNSSEC services for the first time.

The price is $2.99 per month, which works out to $35.88 a year.

For the money, buyers also get a bunch of other tools, such as reports and audits, off-site DNS functionality and backup name servers.

There’s also a “Vanity Nameserver” option, which appears to let customers set their domain’s name servers to display as something like brand.domaincontrol.com, rather than ns1.domaincontrol.com.

It also appears that users of Go Daddy’s standard service will now be limited to 100 forwarded sub-domains, with Premium DNS users getting an unlimited number.

But the big deal as I see it is the addition of managed DNSSEC.

DNSSEC is a new security protocol that substantially mitigates the risk of falling prey to a DNS hijacking using, say, a cache poisoning attack.

Remember the Kaminsky Bug? DNSSEC prevents that kind of thing from happening again.

The problem with DNSSEC is that it’s massively complex and quite hard work to manage, requiring frequent key generation and rollover.

Go Daddy users can already manage their own DNSSEC records if they choose, but that’s only really an option if you’re a hard-core DNS geek.

Paying a few bucks a month to have somebody else manage it for you is an absolute bargain, if you care enough about your domain’s security.

I suggest that this could be a lucrative business for Go Daddy primarily because proponents of DNSSEC hope that one day it will be ubiquitous. Every domain will use it.

Go Daddy has over 45 million domains under management today. If customers representing only 1% of its domains choose to upgrade, that’s an extra $16 million into company coffers annually.

If they all do (which is not going to happen) we’re talking about a $1.6 billion business.

I don’t think the new service is going to lead to a massive uptick in the number of signed domains, but it will certainly get the ball rolling. For enterprises, it’s good value.

But individuals and large domain portfolio holders will not flock to return to 1999 .com prices just in order to implement a protocol they’ve been doing just fine without.

The future of broad DNSSEC adoption is more likely to be in open-source and freeware tools and services that can be easily understood by geeks and non-geeks alike.

Go Daddy plans Premium DNS service

Kevin Murphy, December 13, 2010, Domain Tech

Go Daddy is to launch a Premium DNS service that will include managed DNSSEC security, the company revealed during sessions at the ICANN meeting in Cartagena last week.

Go Daddy customers can currently get a brief overview of the forthcoming service by logging into their domain manager and finding the Premium DNS “Coming Soon” link, or looking here.

During a session on DNSSEC in Colombia last week, Go Daddy’s James Bladel laid out more detail on the service in a presentation (PDF) which contains screenshots of the interface.

The company started supporting DNSSEC for free on certain TLDs in the summer – it currently supports .net, .biz, .eu, org and .us – but it requires users to manually generate and manage cryptographic keys.

That’s beyond the ken of most domain name owners, so the registrar is adding a premium “set it and forget it” service which will see Go Daddy manage the complexities of DNSSEC.

Bladel said of the service:

it’s as simple as having a DNSSEC on/off switch. So customers who have no particular interest in the behind- the-scenes technology of DNSSEC can simply flip that switch and then enjoy the benefits of a secured domain name.

The DNSSEC standard helps prevent domains being hijacked through cache poisoning attacks by signing each domain’s zone with a validatable cryptographic key. The technology will be available for .com domains early next year.

It’s by no means free or easy for registrars to implement, and there’s been little demand for the technology among registrants, so I’ve been wondering how registrars planned to monetize it.

Now we know how Go Daddy at least plans to do so – the Premium DNS service will have other benefits beyond DNSSEC, which could spur adoption through osmosis.

The service will also include DNS up-time guarantees of 99.999%, vanity name servers, log tracking, and several other perks.

The company has not officially announced the service to customers yet, so I expect we’ll find out more details in due course.