# 123Systems sold again?



## MannDude (Oct 30, 2014)

A few months ago 123Systems was acquired by ChicagoVPS as per the announcement in this thread here ( ), though it appears that the company has changed ownership once more in a short amount of time as per today's most recent update seen in the original thread here ( /page-4#entry78575 ) and from @CVPS_Chris 's comments on LET:







The domain name still shows Fabozzi as the owner of the domain and the new owners have not yet been identified yet publicly.


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## D. Strout (Oct 30, 2014)

Ain't _no_body wants that PoS.


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## HalfEatenPie (Oct 30, 2014)

I feel sorry for the poor saps who got scammed into buying it.


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## DomainBop (Oct 30, 2014)

> *A few months ago* 123Systems was acquired by ChicagoVPS


 :lol: :lol: :lol: :lol: :lol:



> it appears that the company has changed ownership once more


Just remember that the source of that information also pretended to be a woman named Crystal...


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## yomero (Oct 31, 2014)

In the meanwhile, my unique server there from long ago got... destroyed and recreated ¬_¬

Fortunately I didn't had anything there.

Honestly, I had better times when Andrew was there. And for this supposed "sale" (or just changing owner name maybe?), I don't think it will get any better.


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## drmike (Oct 31, 2014)

I have $5 on BlueVM being the new owner....

Same support team, same slabbing, same puppet string pullers.


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## DomainBop (Oct 31, 2014)

drmike said:


> I have $5 on BlueVM being the new owner....
> 
> Same support team, same slabbing, same puppet string pullers.


Which BlueVM? The non-legal entity Blue VM Projects currently listed on the WHOIS or the legal entity BlueVM Communications LLC formerly listed on the WHOIS whose corporate status is currently delinquent because it stopped filing the required reports with the state in 2013 ?


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## vRozenSch00n (Oct 31, 2014)

Several years ago 123Systems was good and I use the $10/year VPS for my NS, and several others for phpoxy.

Last year (November 2013) I bought a $35/year VPS and they gave me one with a blacklisted IP from CC and I opened a ticket several times to have it cleaned or provide me with a new IP.

The last ticket was answered by Andrew, stating that they are contacting SRBL, but a month later it was still blacklisted.

Fine, I'm not going to use it as a mail server! So, I tried to yum update the server and it took more than an hour to finish! Wow. What a server 

Several months ago I canceled the VPS, surprisingly I got an invoice a couple of minutes ago.

So I checked the solus panel to find that my VPS is already deleted, then I checked the IP, and it is still listed at: bl.spamcannibal.org, dev.null.dk, 2.apews.org, and spamsources.fabel.dk. 

As I remember when 123Systems performs well, there is some setting involvement by @Francisco . I'm not sure though.


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## drmike (Oct 31, 2014)

DomainBop said:


> Which BlueVM? The non-legal entity Blue VM Projects currently listed on the WHOIS or the legal entity BlueVM Communications LLC formerly listed on the WHOIS whose corporate status is currently delinquent because it stopped filing the required reports with the state in 2013 ?


The non-legal entity of course   That being the BlueVM unincorporated as an investment of CC/CVPS.

Just more Matroshka nesting dolls in Buffalo.

As for the incorporation documents @DomainBop... Thanks for the push on that...

So I looked.

May 27, 2012, incorporation shows two partners in BlueVM.  Johnston and Arsene Tourmani.   Cash investments of $1k from Johnston and $4056 from Tourmani.

Each had 40% equity.  80% combined.  Other 20%, no clue....

Their last required filing they actually submitted was 08/01/2013.

After that they failed to report:

4/23/2014

7/31/2014

and...

9/30/2014

So at this point, I'd consider like the State of Colorado has that:

Entity has become delinquent for failure to file Periodic Report


More interesting is that Feathur LLC IS IN GOOD STANDING at current and none of the incorporation issues.


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## Aldryic C'boas (Oct 31, 2014)

vRozenSch00n said:


> As I remember when 123Systems performs well, there is some setting involvement by @Francisco . I'm not sure though.


They used to be a colo customer of ours, aye.  Hence the horrid quality drop once they left.


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## Munzy (Oct 31, 2014)

Aldryic C said:


> They used to be a colo customer of ours, aye.  Hence the horrid quality drop once they left.


Quick Aldryic go pour pony juice on it!


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## zafouhar (Oct 31, 2014)

My bet goes that this is just a marketing stunt... and that the owners are still Chris and his crew and they just want to disassociate the brand from the rest of his brands so that he can get new customers... and this last week i'm quite correct with my bets as i won the lottery on Thursday.


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## MannDude (Oct 31, 2014)

zafouhar said:


> My bet goes that this is just a marketing stunt... and that the owners are still Chris and his crew and they just want to disassociate the brand from the rest of his brands so that he can get new customers... and this last week i'm quite correct with my bets as i won the lottery on Thursday.


That would be a feasible theory if 'the rest of his brands' weren't also of similar quality and had the same similar public image. Unless he plans on announcing those are sold too.


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## Asama (Nov 1, 2014)

They restocked all locations which looks most CVPS similar.

That nodes got fresh numbered (LA1, NJ1, NY1, ...)


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## wlanboy (Nov 1, 2014)

> Once your reputation is ruined, you can stop worrying about what other people think.


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## MannDude (Nov 13, 2014)

Any update on this @CVPS_Chris ? Who is the _new_ owner?


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## drmike (Nov 14, 2014)

Bahahaha 

Come on now.  Still waiting on him admitting to his other shenanigans like with BlueVM ownership.

If Fab spent half his time providing customer support and learning things himself, CVPS and related owned companies wouldn't be in the shape they are.


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## Steven F (Nov 14, 2014)

The new owner of 123Systems is... Chris Fabiozzi. Congrats Chris on the new acquisition!


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## switsys (Nov 14, 2014)

Steven F said:


> The new owner of 123Systems is... Chris Fabiozzi. Congrats Chris on the new acquisition!


I'll be damned, what a surprise!


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## jamaica (Nov 15, 2014)

Let's collect some money from community, buy 123systems and then close this company. lol


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## Coastercraze (Nov 15, 2014)

jamaica said:


> Let's collect some money from community, buy 123systems and then close this company. lol


That just ruins the fun though, when you could buy it and flip it!


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## MannDude (Nov 15, 2014)

The domain is still in your name, @CVPS_Chris , did you sell it as claimed?


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## DomainBop (Nov 15, 2014)

MannDude said:


> The domain is still in your name, @CVPS_Chris , did you sell it as claimed?


He was speaking as a representative of New Wave NetConnect LLC (NWNX) when he posted that on LET and his exact words were _"ChicagoVPS no longer owns 123systems"_.  TheWHOIS info would seem to back up the claim that NWNX (d/b/a CVPS) no longer owns 123 systems because it currently shows "Chris Fabozzi" not NWNX as the registrant.


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## jamaica (Nov 15, 2014)

Coastercraze said:


> That just ruins the fun though, when you could buy it and flip it!


I'm so tired to read about this company here and on LET  So I will give my 100$ if this company will get destroyed.


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## drmike (Nov 16, 2014)

Word has it that Biloh took 123Systems off of ChicagoVPS (to those who don't know, Biloh owns majority control of CVPS).

123Systems is being operated at this point by another Colocrossing OWNED company.


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## DomainBop (Nov 16, 2014)

drmike said:


> Word has it that Biloh took 123Systems off of ChicagoVPS (to those who don't know, Biloh owns majority control of CVPS).
> 
> 123Systems is being operated at this point by another Colocrossing OWNED company.


The 8.75% sales tax rate shown for NY residents is the rate for Erie county so it's definitely owned by someone in the Buffalo area now (note: whoever is operating the site should fix the shopping cart on the site.  It shows the correct sales tax rate when a NY billing address is given but the tax calculation is always $0.00 so NY residents aren't being charged sales tax when they buy.)



edited to add: even if the tax calculation on 123 is FUBAR, at least it's showing a line for NY sales tax which is a start...HVH's shopping cart doesn't even show a line for sales tax to NY residents...sales of services to NY residents are taxed in NY state.


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## MannDude (Nov 16, 2014)

Weird. Probably passed over to another in the CC ring then. Any update @CVPS_Chris? Just curious who has access to client data now since the sale/transfer/give-away was never publicly announced outside of your single comment. Is 123System another VSNX brand now? Did you get told to hand it over to someone else more.... _equipped_?


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## drmike (Nov 16, 2014)

MannDude said:


> Weird. Probably passed over to another in the CC ring then. Any update @CVPS_Chris? Just curious who has access to client data now since the sale/transfer/give-away was never publicly announced outside of your single comment. Is 123System another VSNX brand now? Did you get told to hand it over to someone else more.... _equipped_?


They are busy consulting their resident public relations / marketing GOD over at Greenvaluehost.  How to spin a dried up turd into into a nice liquid slurry palatable by the bacteria that buy via sLowendTalk.

I guess I should have talked to @CVPS_Chris already.   I almost have the confessional in order with ceremonial spirit expungers.  

Not many options for shuffleboarding #failedco in CC kingdom.  There is CC proper / VSNX, which is trying to be premium brand.    There is what else?  

HudsonValley is the other place and I've long said that I can see that brand encapsulating all the sLowend customers.  It's already home to GVH, 'nuff said.

If I've learned anything from last ass kicking gone round is that a Biloh deal will go via VSNX in any press.  Long been structured that way with his corporate nesting dolls.

When the press comes out it won't be anything but horror.  I feel for the workers behind the scenes at CC-landia who continue to work under such f*cked up conditions with pathological lying leadership.


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## comXyz (Nov 16, 2014)

Hmm, I see 123system is going to become second GVH....

They were good at the first time I used their service....


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## MannDude (Nov 17, 2014)

@CVPS_Chris, any update? I see you've been lurking this thread.


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## k0nsl (Nov 17, 2014)

...just silence stemming from CVPS_Chris. Maybe a company rename to CCCPVS would be appropriate?  :lol:


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## Aldryic C'boas (Nov 18, 2014)

As a former Soviet, I find that comparison rather insulting


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## vRozenSch00n (Nov 18, 2014)

Aldryic C said:


> As a former Soviet, I find that comparison rather insulting


Should I play КАТЮШA now, товарищ?


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## k0nsl (Nov 18, 2014)

I beg my pard on  



Aldryic C said:


> As a former Soviet, I find that comparison rather insulting


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## AnthonySmith (Nov 18, 2014)

http://lowendtalk.com/discussion/comment/796563/#Comment_796563

Sold to........ Colo Crossing, AKA, "Blue Green Wave Valley Connect Crossing Host VM"  and were were all shocked.


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## D. Strout (Nov 18, 2014)

I can't believe it!!!

:lol: JK, we all knew.

opcorn: Let's see what happens next.


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## mikho (Nov 18, 2014)

The email in question



> Velocity Servers Network Exchange (VSNX), a New York based datacenter operator, has acquired the assets of 123Systems effective November 1st, 2014. VSNX has been in business for ten years and brings with it a nationwide footprint of datacenters and expertise, which will be utilized to improve and reconfigure the 123Systems business.
> 
> 
> 123Systems will continue to operate independently, but will now be able to benefit from the financial security and resources of a much larger company. Since taking operational responsibility earlier this month we have implemented numerous improvements in infrastructure, support and customer service. We are confident that those enhancements will make a meaningful, positive, impact. We welcome the 123Systems customer base to the VSNX family and look forward to developing long term successful relationships.
> ...


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## DomainBop (Nov 18, 2014)

> Should I cancel my PayPal subscriptions? No, the account which you pay will stay the same.


123systems was never a registered company so there would have been a SSN not EIN associated with any of its financial accounts so how is it possible to use the same account?



> Let's see what happens next.


My guess is what comes next is that they get audited and pay some hefty fines as well as back taxes for not collecting sales tax on the HVH website on sales to NY residents since they bought it last year...but that's just my guess.


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## MannDude (Nov 18, 2014)

LOL. "Sold"


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## DomainBop (Nov 18, 2014)

MannDude said:


> LOL. "Sold"


Double LOL "Sold" to CC the day after Biloh's posts on this WHT thread:

http://www.webhostingtalk.com/showthread.php?t=1425511&highlight=123systems


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## Francisco (Nov 18, 2014)

Aldryic C said:


> As a *former* Soviet, I find that comparison rather insulting


Bullllllllshit I saw your tab at the end of the cruise >_>

Relevant - http://vimeo.com/87939821

Francisco


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## AnthonySmith (Nov 19, 2014)

http://www.webhostingtalk.com/showpost.php?p=9279203&postcount=7 

That probably made me laugh way more than it should have.


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## DomainBop (Nov 19, 2014)

*FOR IMMEDIATE RELEASE*

Spamhaus is offering a special coupon code to celebrate the acquisition of 123systems by ColoCrossing!

Use coupon code ESCALATION-16 when ordering to receive a "Yair <3 Buffalo" t-shirt!

_fine print:Coupon is valid from 2014-11-18 23:21:38 GMT__ to ??? and is limited to the first 65,536 customers._


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## Francisco (Nov 19, 2014)

DomainBop said:


> *FOR IMMEDIATE RELEASE*
> 
> Spamhaus is offering a special coupon code to celebrate the acquisition of 123systems by ColoCrossing!
> 
> ...




Francisco


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## drmike (Nov 19, 2014)

I think we are watching a real game of corporate shuffleboard.

I cannot believe the BULLSHIT in Biloh's announcement of this as-if it is legitimate transaction.

How the f' do you transfer an asset from CVPS which you own majority equity position in to Colocrossing/VSNX which you have majority equity position in (if not control entirely)?  It's moving things from your left pocket to your right pocket.

I've seen children playing with more honesty and integrity in their deals and  they are just playing pretend.


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## drmike (Nov 19, 2014)

mikho said:


> In the past my VPS was slow. Will it get faster? Your service was likely slow due to “slabbing,” or the technique by which a single physical machine hosted numerous virtualized environments. We have eliminated the use of slabbing and as a result you should already be noticing improving speeds.
> 
> Will prices increase for new customers? There may be modest adjustments to our website packages as our goal is to provide a high quality service, not the least expensive one.


They blame slabbing for the crap performance and mass downtime?   That's funny cause Fabozzi contracted that slabbing work out and had it done.   Biloh calls the shots in CVPS land, writes the damn ads, responds to folks, etc. invisibly.  As if slabbing was done by some random person prior to their ownership.  Unsure if they ever paid the contractor or made amends, was a prior dramarama episode.Fact is slabbing didn't happen until 4th quarter of 2013 when 123Systems went purely to CC for hosting. 

Price increases - so CC / CVPS blew pricing down the damn drain thinking the more for less was sustainable to the floor - to kill off other competitors.  We've seen CVPS uptick prices, BlueVM has upticked prices...  It's their calling card in CC land now cause they aren't getting traction with more lower prices, and such prices mean they can't afford to have the customers / provide support.

So maybe OnApp should get to jumping on 123Systems / Colocrossing:

https://srv01.123systems.net:5656/login.php

SolusVM © 2008-2013 Soluslabs Ltd. All Rights Reserved.

I wonder when they paid, if they paid for licensing?  Why the circa 2013 version.

I think I've brought up the hacked unlicensed copies to OnApp and been crickets on their end.  Is SolusVM now free for the taking?


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## MannDude (Nov 19, 2014)

drmike said:


> They blame slabbing for the crap performance and mass downtime?   That's funny cause Fabozzi contracted that slabbing work out and had it done.   Biloh calls the shots in CVPS land, writes the damn ads, responds to folks, etc. invisibly.  As if slabbing was done by some random person prior to their ownership.  Unsure if they ever paid the contractor or made amends, was a prior dramarama episode.Fact is slabbing didn't happen until 4th quarter of 2013 when 123Systems went purely to CC for hosting.
> 
> Price increases - so CC / CVPS blew pricing down the damn drain thinking the more for less was sustainable to the floor - to kill off other competitors.  We've seen CVPS uptick prices, BlueVM has upticked prices...  It's their calling card in CC land now cause they aren't getting traction with more lower prices, and such prices mean they can't afford to have the customers / provide support.
> 
> ...


It's not just 123Systems that is bypassing SolusVM licensing.... our buddy @CVPS_Chris is too! http://vpscp.chicagovps.net:5353/login.php But I thought they weren't using SolusVM anymore? If they were, why'd they choose an old, outdated version that hasn't been updated since 2012? Oh yeah, because those had working cracks to bypass licensing, of course. Maybe SolusVM was never to blame for their past misfortune of being hacked and having their SolusVM dumped not once, but twice, but three times? Who's counting, anyway? Maybe it was because they were using cracked/nulled software to operate a crucial part of their business? Oh, I don't know.

Maybe now that OnApp owns SolusVM, @NullMind and @Ditlev would like to comment on this? May be worth their time to investigate, seeing as CVPS and 123System between them likely have a fair amount of nodes that are using their software, potentially for free...


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## drmike (Nov 19, 2014)

Bahahaha... 

CVPS running a 2012 version of SolusVM.... Holy asking to be hacked.

Time OnApp takes these clowns to task.  Licensing evasion with them (123Sys + CVPS + CC + ???) is kind of high profile and long has sent WRONG message that Solus licensing is a joke and why pay...


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## zafouhar (Nov 19, 2014)

As far as i am aware the definition of the word "sale" is when a party purchases a produce or service from another party, in this case i believe the more appropriate word that Chris or Jon should use for 123Systems would be "transfer".


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## AndrewM (Nov 19, 2014)

drmike said:


> Fact is slabbing didn't happen until 4th quarter of 2013 when 123Systems went purely to CC for hosting.


To be fair, everything was slabbed the entire time I ran it since 2010.


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## vRozenSch00n (Nov 19, 2014)

AndrewM said:


> To be fair, everything was slabbed the entire time I ran it since 2010.


But it was far more better back then (2011-2012).


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## drmike (Nov 19, 2014)

AndrewM said:


> To be fair, everything was slabbed the entire time I ran it since 2010.


Now it makes sense...   Reason slabbed me...

@AndrewM you ran other slabbing technology.

The CC boys, they run that Xen.

So they were converting from one slab style to other.  

All those pigeons line up on the wire now and sh!t in a straight line.


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## AndrewM (Nov 19, 2014)

drmike said:


> Now it makes sense...   Reason slabbed me...
> 
> @AndrewM you ran other slabbing technology.
> 
> ...


Well, the way I did it worked for a while and then it didn't. I used sub-par controllers that could barely push 100MB/s to the disk unloaded, factor in slabbing and a few hundred clients and it's a recipe for publicity. In any case, I won't go into much detail but there was better ways to do things, I knew what and I knew I could, I just chose the opt-out instead because it was easier. 

I believe in mid-2012 is when I started deploying on new controllers and beefed up the line, and got some better performance but it did little for the anger of the folks that didn't get an upgrade, so it was a moot improvement. 

Love it or hate it, slabbing is now and has always been a huge part of the LowEnd industry, it simply hasn't been openly admitted before until everyone was caught with their pants down. I'm pro-slab and I see nothing wrong with it, unless you do it the way I chose to do it, which is the wrong way. Do it, but do it right, show some performance love to your client's and they'll reciprocate with cash flow. It's a win-win. 

I've derailed from the topic enough though, I'll pass the torch now.


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## DomainBop (Nov 20, 2014)

> Love it or hate it, slabbing is now and has always been a huge part of the LowEnd industry, it simply hasn't been openly admitted before until everyone was caught with their pants down


Speaking as a VPS buyer, I fall on the "hate it" side of the street due to the all too common side effects: poor performance, increased downtime, etc., when the slabbing is improperly done which in the low end market is the majority of the time.  It's one of the (many) reasons I tend to avoid the low end side of the VPS market these days.


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## drmike (Nov 20, 2014)

I fall on DomainBop's side and view.

There is a place for slabbing.  It isn't where folks want to eek out a bit more to oversell at greater ratio on an already under equipped box.

Definitely a lot buyers aren't aware of nor would be thrilled with / would explain bad experience.

I appreciate your honesty @AndrewM


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