What is wrong with the web hosting industry?

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Artashes

Artashes

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Over the course of last 5 years that I have been involved with the world of web hosting through personal experience, communication and work with many of them, one thing that I notice is the continuous degradation of the industry, projected in various areas: from companies that lie and cheat their customers, other immature hosts that backstab their competition, young kids who venture in the business of hosting without realizing what it takes, people who run companies who simply are not educated enough in the subject (example: unlimited hosts), etc. The list goes on and on.

And while there is growth and while the direction of the industry has been evolving, there are those small things that give the industry a bad name and reputation in many ways. The number of companies complained about has increased dramatically even from 5 years ago. I remember when I could do basic research in order to find a decent firm to host with. Today it is tedious task to try and almost fight your way to find a company to trust.

What has happened to trust? What is the reason for it to decline? I want to know what the majority of you think are the ROOT causes of the decease spread over the industry.

Something that not so many people know is that when I came to Canada, I found myself in a company of business people shortly after who were planning to open a web hosting company with very impressive financial projections and business plan, as well as financial muscle to pull it all together. Today, when I look back at how the industry has been poised with flaws that really start to dominate all the positive aspects this industry has, I am the company never started.

Now, I know there are still outstanding people that work in the industry, outstanding companies and providers that make the day brighter for hundreds of thousands of customers out there. However, I would rather focus on the small and detailed negatives that is the subject of this thread. Who, or what is at fault? Can we ever fix them?

Best,
 
Artashes said:
What is the reason for it to decline?
Click to expand...



Cheap reseller accounts and overselling. That is the reason.

When you have a business that is cheaper and easier to set up than a lemonade stand you are going to draw the wrong kind of people.

Probably even more important though is lack of accountability.
I have seen far too many times where hosting "businesses" are set up, they take peoples' money and then they fold without ever repaying the clients.

Two weeks later the same person is running a hosting company under a different name.

Hosting is for all intents a purposes and unregulated business. There is no single body that sets the rules and guidelines and there is no police of the industry.
As long as that is the case the decline will continue.
 
Blue took the words out of my mouth.

There is no "governing body" over the hosting industry - there is no one to hold anyone accountable. Because most accounts are $5, $10, or $20 anyone who gets stiffed out of their money doesn't and won't take the time to follow neccessary channels to get either their money back, or make sure that the person that literally stole from them isn't able to do it again.

It is too easy, as Blue said, to get a Reseller account, create an account on a few forums, and start replying to hosting requests - get some clients to pay by PayPal and close doors a month, or two later.

Too many people see the Hosting Industry as a get rich quick scheme, and not as a business. There is too much greed in the world and as long as money is needed for everything, almost everyone will be doing what they can to get more of it than the rest of the world; if that means screwing a few people over, then that's just the way it is.
 
The issue is the decline in overall work ethics. A governing body is a very good idea and has been proposed many times and discussed in various places but never with any serious consideration. People today are too lazy to realize that good, honest money takes work, and they aren't willing to do that. Then when they realize the employers can't afford to hire people like this, the jobs are shipped overseas to hard-working foreigners who depend on this job for a lack of welfare and family honor, and the lazy people here start blaming the government and not themselves for their own demise. The same principles apply in the hosting industry...
 
The issue is the decline in overall work ethics.
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Agreed. Also, the fact the very young are attracted by computers and so many end up trying to build a business online at ages when they simply lack the necessary maturity, is another main flaw I see in this industry. Note: I am aware that adults can be bad as well.

I've seen repeated requests/wishes for the insustry to finally be regulated. I've always disagreed. IMO there are two main issues that need to be dealt with: customer education and the enforcing of already existing laws and regulations. I don't see why there would be a need for a special force to police the hosting industry. If there is to be one, there should be one to police the Internet as a whole and defer each issue to a specialised force in each country. IMO it's not the hosting industry that's unacceptably dangerous, it's the whole online environment.
 
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Artashes,

Personally, I do not find that the industry went bad. I feel as if the industry is still like a kid who has not matured yet and there are many individuals, companies, ect that would like to take advantage of this quickly growing child.

If you think abou tit, there are nearly no regulations within the hosting industry. Not by the government or by an organization with in the industry. Let some parents start forming to teach a child and then the industry will get better.

Cheap, cheap, cheap is also a problem too.
 
I think its jus that everone ones quick money....its still a new business but the competition is rough...
 
There is also no barrier to entry for this industry. If you have $30 you can set up a "company". This opens the doors to many unqualified people - which is essentially the source of the problem.
 
*SHOCKED* @ Your Words...

:rolleyes2

I am 13 and have over 100 happy clients with 2 Quad Xeon servers with 4 GB ram in each and still making a $1500-$2000 profit every month. How do I do it? Prices, support, and UPTIME. I know the problem you were reffering to, just when you said "kids" in the original post, it shocked me that someone could jump to such a sudden judgement. And for the ones wanting to know what I do with my profits; currently 80% is going to a savings account and the rest goes to RedCross (I started that when hurrican Katrina hit mobile and killed the person I care about most; my twin brother; as much as it saddens me to say...). Anyway, I didn't write this all to let you know of my loss but to let you know kids can do amazing things when they try.

FAQ:
Where did you get the money to start up?
ANSWER:
I loaned my mom $50 (because we aren't the richest people around) and I charge 100% interest per month she has the money. She wasen't able to pay me back for 2 months making her total she owed me $200. I used that money to pay for my 1st month of a dedicated server and clients just came to my prices, which I made from my server costs; no profit then, it wasent of my concern, I just wanted to get going then:). The clients came and I had enough for a quad xeon server with 4 GB ram from InterServer, Inc. which I baught and soon baught another one once I started on profits. It took me 2 months to get where I am.
Because of:
1. My great prices
2. My extended support
and mainly
3. My 100% uptime guarentee. (Which I have, 'til this day, kept!:thankyou:)
 
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AmericanHoster said:
FAQ:
Where did you get the money to start up?
ANSWER:
I loaned my mom $50 (because we aren't the richest people around) and I charge 100% interest per month she has the money. She wasen't able to pay me back for 2 months making her total she owed me $200. I used that money to pay for my 1st month of a dedicated server ...
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I am sorry, maybe I don't read correctly, but did you just say you cheated your own mom so you could start a web hosting company? :shocked:
 
Lmfao

Cheating? NO!!!! I don't cheat. I play a clean game. She knew the deal from the get-go. She asked for it and I let her barrow what she asked.


:laugh: :laugh: :laugh: :laugh: :laugh: :laugh:
 
AmericanHoster said:
I am 13 and have over 100 happy clients with 2 Quad Xeon servers with 4 GB ram in each and still making a $1500-$2000 profit every month. How do I do it? Prices, support, and UPTIME.
Click to expand...
1)
Really? Well how come when I do a reverse-dns I get this server hosts 6 websites?
http://www.whois.sc/american-hoster.com

2) You do not own your own server, here is a traceroute to your asiahost.com account:
Tracing route to american-hoster.com [66.45.232.110]
over a maximum of 30 hops:

1 2 ms 1 ms 1 ms mfc-lew-13s-v230.netequip.depaul.edu [140.192.65
.120]
2 15 ms 3 ms 3 ms mfc-cst-bs-v881.netequip.depaul.edu [140.192.9.7
3]
3 148 ms 330 ms 126 ms mfc-sac-1s-a-v841.netequip.depaul.edu [140.192.9
.181]
4 4 ms 20 ms 19 ms rtr-sac-1s-int-ge0-0-0.netequip.depaul.edu [140.
192.9.148]
5 42 ms 64 ms 33 ms g4.ba21.b002281-1.ord01.atlas.cogentco.com [66.2
50.5.33]
6 329 ms 83 ms 16 ms g2-2.core01.ord01.atlas.cogentco.com [66.28.66.8
1]
7 11 ms 7 ms 17 ms p15-0.core01.ord03.atlas.cogentco.com [154.54.2.
242]
8 25 ms 12 ms 4 ms abovenet.ord03.atlas.cogentco.com [154.54.11.58]

9 128 ms 15 ms 6 ms so-1-0-0.cr2.ord2.us.above.net [64.125.30.142]
10 33 ms 34 ms 42 ms so-6-0-0.cr2.lga1.us.above.net [64.125.27.34]
11 34 ms 33 ms 42 ms so-1-0-0.mpr1.lga1.us.above.net [64.125.27.150]

12 34 ms 32 ms 33 ms 64.124.44.213.interserver.com [64.124.44.213]
13 82 ms 72 ms 46 ms 64.20.32.37
14 86 ms 89 ms 86 ms ns2.asiahost.net [66.45.232.110]

Trace complete.
-------
BTW asiahost does not have any dedicated servers for sale. Interserver does not sell QUAD XEON's as well.

The problem is little kids that lie. BTW I'm going to do some more research on you to just prove my point (somebody needs to be made a sacrafic to prove my point).
 
Lmfao!!!

asiahost.com!!!
WHERE IN THE WORLD DID THAT COME?
My servers are hosted by InterServer, Inc. and in NO was is it in affiliation with asiahost.com! I guarentee you!

Also, my website is on its own IP, thats the old DNS from my old server when I was transferring accounts. You can check back later and see it on my sites lonesome IP. All of my old clients got a dedicated IP when I moved the sites. They are scrambled, dont try to find them. Some start like 66. and some start 69. and some start in 73.

As you will see when you look at http://www.whois.sc/american-hoster.com
It says the server IP starts with a 72.
OK, now, Since your smart, or seem to be, ping american-hoster.com

You get its new IP, 66.45.232.110!! That right there will tell you the records at http://www.whois.sc/american-hoster.com are old... Am I right or what?

Thank you... I rest my case... Just goes to show everyone how ingnorant some people are... (Or seam when they overlook simple things)...
 
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How come your mom needed to loan from you and not the other way around? :p

It's cool to see that some kids are able to do things properly and I wish you the best of luck in the future.

I think that greed has played an important role in the demise of the hosting industry.

But, I have no sympathy for those that choose a new company because they promise great things and you end up getting conned or ripped off in the end. It's your responsibility to make the right choice. That's where education comes into it. If you're stupid enough to risk investing your money into a company/website/service/person you know nothing about, then tough, you should have been more careful. You learn from your mistakes.
 
Keith said:
But, I have no sympathy for those that choose a new company because they promise great things and you end up getting conned or ripped off in the end. It's your responsibility to make the right choice. That's where education comes into it. If you're stupid enough to risk investing your money into a company/website/service/person you know nothing about, then tough, you should have been more careful. You learn from your mistakes.
Click to expand...
Very well phrased, Keith. I agree with you. However, it is often hard for those never had to deal with this kind of market to make their picks. But who is to say they can't ask for advice from someone who knows?

Best,
 
Keith said:
How come your mom needed to loan from you and not the other way around? :p

It's cool to see that some kids are able to do things properly and I wish you the best of luck in the future.

I think that greed has played an important role in the demise of the hosting industry.

But, I have no sympathy for those that choose a new company because they promise great things and you end up getting conned or ripped off in the end. It's your responsibility to make the right choice. That's where education comes into it. If you're stupid enough to risk investing your money into a company/website/service/person you know nothing about, then tough, you should have been more careful. You learn from your mistakes.
Click to expand...




Correct, some hosting companies that charge high also design their users website. Not All, but Some.


Also, to your question about my mom barrowing money from me...

I save my money. She works at the Waffle House (You may have heard of them, I am not sure, depends on where you live) and dont make that much. I on the other hand sell CDs at school for $10 each and DVDs for $12 (which I can get 3 days before they come out in theater... :party: ) And I save my earnings. Usually to buy computer hard ware, like my ATI Radeon X900 which I saved my money and baught that way... Was over $400...


And I thank you for your wishes for my successful future; I hope the same for you...
 
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