# PremiumVM Up for Sale.



## drmike (Oct 5, 2013)

Dominic posted on WebhostingTalk, an ad seeking to sell PremiumVM + customer base:



> Hello,
> 
> I have a hosting company for sale, which has an $18K annual revenue. It has a few shared clients, and a few dedicated server clients (resold). The majority of clients are VPS clients (100-150).
> 
> ...


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## wlanboy (Oct 5, 2013)

According to my personal gut feeling a lot of hosters:


close locations
try to sell their business

I know that there is a market adjustment - but why such a high accumulation in the last weeks?


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## drmike (Oct 5, 2013)

I think these closures and mergers are long overdue.  Global economy has been in very long downward spiral (5 years in many industrialized countries).  Do we buy food or crank up the electric and buy some virtual products?

Dom's company was long poked at elsewhere as being another company he'd start and implode.  Writing was on the wall for customers as his locations changed a tad too frequently.  Surprised things ran as long as they did this time.

As an end customer, these deals always bother me.  No one seems to have anything in their DOCS about mergers, acquisitions and other forms of account inheritance.


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## MannDude (Oct 5, 2013)

PremiumVM was originally launched in December of 2012, closed in early 2013, re-opened in April of this year. It's too bad too, because they had services from Columbus, OH which was a unique location. But they dropped that, and now have Atlanta and Phoenix? Meh.

Hmm... Should we take bets on who the new owners will be? I don't think it'll be RLT though. Seems too be too small to be worth their time.


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## mikho (Oct 5, 2013)

Not the first time Dominic having problems with his company.


He depended on that Jacob(?) guy. Dominic couldn't administrate a vps /server so Jacob(?) helped him. Ciuld be that Dominic is now left alone and because of that is selling.


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## drmike (Oct 5, 2013)

I'll second @MannDude in saying that the Columbus location was interesting.     So interesting, I waited and contemplated giving it a try


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## shovenose (Oct 5, 2013)

Hmm...

Interesting.


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## BlueVM (Oct 5, 2013)

We've put in an offer on the company. We'll see how it goes...


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## RiotSecurity (Oct 5, 2013)

Lmfao, he's selling.... again.

I thought this time he was dedicated to it.


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## drmike (Oct 5, 2013)

I offer $7, oh wait I am allowed to go higher here.

100-150 containers at $4 a month income tops = $600...  

12 months = $7200.....

Yeah big difference than $18k offer...

Lots of work for so few containers and who says clients will be happy and staying considering migration....


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## Zach (Oct 5, 2013)

buffalooed said:


> I offer $7, oh wait I am allowed to go higher here.
> 
> 100-150 containers at $4 a month income tops = $600...
> 
> ...





> It has a few shared clients, and a few dedicated server clients (resold). The majority of clients are VPS clients (100-150).


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## Jack (Oct 6, 2013)

buffalooed said:


> I offer $7, oh wait I am allowed to go higher here.
> 
> 100-150 containers at $4 a month income tops = $600...
> 
> ...


He has 3 VPS nodes so you work at $7k/year per node that's $21k for the 3 VPS nodes per year.


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## Lee (Oct 6, 2013)

buffalooed said:


> Lots of work for so few containers and who says clients will be happy and staying considering migration....


Well, they were happy to go with him for what must be the 5th time he tried so I suspect these are all clients that would be happy with chicagovps or even dewlance *shock*


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## drmike (Oct 7, 2013)

I think there is more to why PremiumVM went away.

Wasn't Jacob/Ease VPS hand holding Dominic and basically doing all the technical?

Didn't Jacob just bail on his company?   Yeah he did it seems... Thread coming in 2 minutes...


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## drmike (Oct 7, 2013)

Here we are about EaseVPS --->  http://vpsboard.com/topic/2176-easevps-covertly-sells-customers-to-myrsk/

EaseVPS told customers yesterday that they were migrating customers to MyRSK.com.


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## rsk (Oct 7, 2013)

buffalooed said:


> Here we are about EaseVPS --->  http://vpsboard.com/topic/2176-easevps-covertly-sells-customers-to-myrsk/
> 
> EaseVPS told customers yesterday that they were migrating customers to MyRSK.com.


Just clarifying on this, Jacob didn't just bail out. He is currently working a 40hr/week job and there were also some issues with their only payment processor. From my point of view, in all fairness, He came up to me in a professional manner and we discussed things and we saw that this is the best way for clients to be getting their services running flawlessly.

Jacob deserves a pat on the back, unlike the many hosting companies that just decide to close shop and leave their clients abandoned.

I hope you do not think that this is a biased comment, because it surely is not.

Regards,

R. Alkhaili


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## Sal-Conn8ct (Oct 7, 2013)

I was looking to put in a offer but then realised it just isn't worth it at all.

Good Luck to the new owners


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## rds100 (Oct 7, 2013)

So working 40 hours a week is a big deal and life must stop because of it? How much do you guys work per week?


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## MartinD (Oct 7, 2013)

rds100 said:


> So working 40 hours a week is a big deal and life must stop because of it? How much do you guys work per week?


It would be easier to ask how many hours a week do I not work..


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## Jack (Oct 7, 2013)

MartinD said:


> It would be easier to ask how many hours a week do I not work..


2 hours sleep a day? - 14 hours that you don't work?


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## dominicl (Oct 7, 2013)

Hi,

Just wanted to comment in here - we will be sending out an email once the sale is finalized/confirmed. We apologize that it had to end like this, but there are things going on at the moment that take priority over this. Therefore, I have decided to sell.

All clients will be taken care of, even if it does mean a change of location. All dedicated server clients will be contacted personally. A mass mail will be sent out to all clients, hopefully within the next 24 hours (max 48).

If you have any questions, please do not hesitate to contact me directly (email [email protected]). I will do my best to address all concerns.

Kind regards,

Dominic


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## MartinD (Oct 7, 2013)

Not to be a douche, but "taken care of" does not mean "change of location"

/2c.


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## TheLinuxBug (Oct 7, 2013)

Hey Dominic,

I understand there are more "_important things_" that can happen, but is that to say that your promise to your customers is not important? * I think you need to grow-up and realize that you made a gentleman's promise that you would not do this again, so by doing this a second time, you devoid your word of value in this market.*  After making promises to the community, both here and on LET, you decided that you do not care enough to keep your promise (again) and here you are selling your business.  Regardless of these "_important things_" this shows a lot of immaturity on your part pulling this same thing a second time on your customers to make financial gain for your self.  The people losing in this situation are your customers as you will still walk away with a nice payday from whoever buys your customers up. 

Truth is, I am not even your customer and your actions upset me.  Fool me once, shame on me, fool me twice....

*A real man would stand up and take responsibility for those "important things" and their business promises. *

My 2 cents.

Cheers!


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## mikho (Oct 8, 2013)

Third time if I'm not mistaken


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## HostingAbove (Oct 8, 2013)

Jack said:


> He has 3 VPS nodes so you work at $7k/year per node that's $21k for the 3 VPS nodes per year.


Wow, how the heck does someone make so much of single nodes? Apparently, I need to reach out to them for business advice.  :huh:


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## Patrick (Oct 8, 2013)

HostingAbove said:


> Apparently, I need to reach out to them for business advice.  :huh:


Yeah, no. I doubt you want to do that.


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## peterw (Oct 8, 2013)

HostingAbove said:


> >He has 3 VPS nodes so you work at $7k/year per node that's $21k for the 3 VPS nodes per year.
> 
> Wow, how the heck does someone make so much of single nodes?


He was collecting customers because noone would be interested in three servers or his company name. It is all about collecting customers and selling them again.


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## Reece-DM (Oct 20, 2013)

> Dear Clients,
> As per the email you received, we are merging with HostNIT. Your accounts/services have been imported into their billing system. You may use the same log-in details to log into HostNIT as you did for PremiumVM. Dedicated server customers will be contacted shortly, and VPS's will be moved over to their New Jersey location within 24 hours. You will be emailed your new IP addresses when your VPS's have been moved over. If you have any questions, please contact HostNIT via support ticket (in their billing system)


Appears they've now gone. Will Dominic still be sticking with the clients in this "Merge" or was it really sold?


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## Jack (Oct 20, 2013)

VPS's will be moved over to their New Jersey location within 24 hours. 

So All UK + Atlanta + Phoenix VMs are getting moved to Choopa?


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## Reece-DM (Oct 20, 2013)

Jack said:


> VPS's will be moved over to their New Jersey location within 24 hours.
> 
> So All UK + Atlanta + Phoenix VMs are getting moved to Choopa?


That's definitely going to cause some unhappy clients.

Nice to see it's going to Choopa though


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## Jack (Oct 20, 2013)

Reece said:


> That's definitely going to cause some unhappy clients.
> 
> Nice to see it's going to Choopa though


Choopa NJ will be the new Buffalo at this rate.


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## Reece-DM (Oct 20, 2013)

Jack said:


> Choopa NJ will be the new Buffalo at this rate.


That should be an interesting one to see 

I don't think Choopa would be providing anyone as cheap of deals than what CC were doing to fill Buffalo, or will they? I wonder who else is going to jump ship and find a alternative.


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## dominicl (Oct 27, 2013)

Sorry for the lack of updates.

I, as always, will be sticking with clients throughout the merge until it is completed.


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## Reece-DM (Oct 27, 2013)

dominicl said:


> Sorry for the lack of updates.
> 
> I, as always, will be sticking with clients throughout the merge until it is completed.


 So what happened?


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## dominicl (Oct 27, 2013)

Reece said:


> So what happened?


Clients are receiving constant updates via emails. Merge nearly done.


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## HalfEatenPie (Oct 27, 2013)

See I'm not a client of PremiumVM, but I'm going to address (and complain) about this right now.

I hate how a customer's information is immediately transferred to a third party without any notification to the client beforehand.  I mean when you sign up with a company you'd assume that person would be working with you, but no instead they sell your information to another company. 

I was once with a company (and cancelled services with them later) and they were bought out by HostNIT (literally a year later after I cancelled).  I got an e-mail from them about moving my information to their billing system.  Like seriously?  It infuriates me that the specific company that sold out also gave them my information (no longer a client of theirs) and that HostNIT contacted me through the information I provide to someone else.

Now this may be all "legal" or not, but it still infuriates me.


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## Francisco (Oct 27, 2013)

Jack said:


> Choopa NJ will be the new Buffalo at this rate.


No way.

Power is simply too expensive. It's about $35/AMP in choopa which chomps into margins quite a bit. From my long chats with them, nearly half of a contracts cost is tied up in power alone.

Jon charges ~cost for power in Buffalo and it's like $250 - $300 per 20A. Choopa is like..$750/20A.

That's not to say he couldn't do it, it's just I don't see him putting $75/month servers over there since he also has to pay transit 

Francisco


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## raindog308 (Oct 28, 2013)

Francisco said:


> Jon charges ~cost for power in Buffalo and it's like $250 - $300 per 20A. Choopa is like..$750/20A.


Is there something about New Jersey that makes the power 300% more expensive?

I know New Jersey completely blows for businesses in terms of taxes, etc. but triple the cost of a neighboring state!?


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## Francisco (Oct 28, 2013)

raindog308 said:


> Is there something about New Jersey that makes the power 300% more expensive?
> 
> I know New Jersey completely blows for businesses in terms of taxes, etc. but triple the cost of a neighboring state!?


I don't know. It's quite possible that the power companies charge that much because they know it's so close to NY. I know when we were looking on the east coast, we had EGI give us a quote. Scott said that the rack alone would be $2000/month or something insane like that, not counting transit.

Francisco


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## Dylan (Oct 28, 2013)

raindog308 said:


> Is there something about New Jersey that makes the power 300% more expensive?
> 
> I know New Jersey completely blows for businesses in terms of taxes, etc. but triple the cost of a neighboring state!?


In general electricity in New York is more expensive than in New Jersey. Buffalo's an exception owing to the cheap and abundant hydroelectric power generated from Niagara Falls.


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## drmike (Oct 29, 2013)

Dylan said:


> In general electricity in New York is more expensive than in New Jersey. Buffalo's an exception owing to the cheap and abundant hydroelectric power generated from Niagara Falls.


So they claim about Niagra.   More like Buffalo power is cheap since the city has lost over 50% of their population and most of their industrial production capacity:

1950    580,132   

2012    259,384

Both NJ and NY are taxed to death states.  Wonky prices in both places.


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