I doubt they'd be willing to pay them the same amount to work remotely if they have to hire new people to do any hand-on work. The whole point of moving to a different state is to save money and adding more staff doesn't seem logical in that sense.
Burst.net Continues their Implosion!
- Thread starter drmike
- Start date
DomainBop
Dormant VPSB Pathogen
If I had to make a guess I'd say a large share of the PA based lower level staff will be replaced and given notice they're being terminated very soon. One of the reasons for the short notice about the move may be the new management wanted to minimize the risk of sabotage/theft by keeping about to be terminated workers in the dark until the last minute. During the dot com crash in NY, employees usually weren't told they were being terminated until the last minute to minimize the risk of sabotage (and then the group that had been laid off that day was given a short time to pack their belongings and escorted out of the building by hired guards).
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Even before, when they had presence in multiple places i can imagine most of their staff was at their offices, not at the data center floors. I don't see why they need to move the offices when they move one data center. Actually is this the only one / last one of their locations?
In all cases hiring and training new staff for everything in such short time can't work.
In all cases hiring and training new staff for everything in such short time can't work.
Their offices were in their PA data center so closing down the data center means closing down their offices. I'm just speculating based on the previous CEO not knowing about the move until today and stating he is leaving the company (I read it as he doesn't have much of a choice because he doesn't seem like he wanted to jump ship prior to this announcement).
Who is to say the new staff isn't already in place? I have been keeping up with the WHT thread throughout the day and based on the moves being made I would be surprised that they do not already have staff onsite to handle most everything.
All in all, I am willing to bet this has been planned out a lot more than people on WHT have been guessing at and that the new management have been planning this for weeks, if not months.
There is so much that isn't known at this stage that assuming anything is dangerous to say the least.
Honestly, I am not surprised at all that he would be given his walking papers. Based on the events over the past couple of months it appears he may have driven BurstNET into the ground and left the investors to cleanup the mess.
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Multiple people are planning flights ASAP to get there.
Supposedly the WHT rep for lunanode is planning a trip down in the morning from Toronto to handle the pulls.
Francisco
Prep time.
It's also quite possible that management didn't want to lead on that they had planned NC all along. You don't want to give possibly super pissed employees a chance to cause some serious damage. At this point I would be shocked if their support grunts are even on payroll still.
I wouldn't be surprised if they hire out a professional IT moving company.
Francisco
My understanding is they never moved anyone out of Dallas, they just pulled the plug and walked away.
That is pretty much my thoughts exactly. The new ownership has likely been strategically planning this for months, closing locations that are not profitable or growing fast enough to warrant further investment (money or time).
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They mass migrated or offered people new hardware to push over to.
I don't think they went in and got things, though.
From what @ryanarp said, their cage looked empty so they got their gear at some point.
Francisco
That is interesting...
I saw that they currently have Level3 in their mix, and Level3 is on net at DC74, so perhaps they'll have Level3 and Cogent.So Burst will be 100% Cogent?
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If it will be the same two providers as in the current DC, what are they bitching about "network performance", etc.
If they just reproduce the same thing in the new location, the results probably won't be much different. Granted some of their current customers will probably leave them so that should free some bandwidth.
If they just reproduce the same thing in the new location, the results probably won't be much different. Granted some of their current customers will probably leave them so that should free some bandwidth.
Maybe the initial will be that and they wanted the option to bring in more?
I dunno, it's all very odd. It's out of no where and it's going to slaughter them.
It's possible they already did the math on them bleeding half their users and they're
OK with that level of collateral damage.
Francisco
drmike
100% Tier-1 Gogent
Someone needs to dropkick the vulture idiots acting like recent business school graduates. Hey buds, it's all about the customers and you just doused them in mass. Good move, stick to playing with money and keep away from people.
I never thought I'd see Burst suddenly deadpooling, but bozo the venture clown signed the deal on this self inflicted market decapitation. Put your heads right in the guillotine, willingly.
I am beginning to wonder what all this datacenter stuff in Dunmore really was about.
Like:
=== EQUALS ===
=== EQUALS ===
http://www.loopnet.com/Listing/17193948/1205-O-Neill-Highway-Dunmore-PA/
1205 O'Neill Highway
1205 O'Neill Highway, Dunmore, PA 18512
$10 /SF/Year
35,000 SF | Industrial
Total Space Available:
35,000 SF
Rental Rate:
$10 /SF/Year
Min. Divisible:
80,000 SF
Max. Contiguous:
80,000 SF
Property Type:
Industrial
Property Sub-type:
Flex Space
Building Size:
155,358 SF
Lot Size:
44 AC
Listing ID
17193948
Last Updated
18 days ago
It's a lease property.
Office/call center space, over $8 million invested in office renovations. Large open floor plan with executive offices with fiber optic cable installed throughout. 12' acoustical drop ceiling in place, but can be removed for 23' clear ceiling heights.
InSite develops, owns, and operates tenant-driven investment property nationwide. Privately held since its 1988 formation, the company has completed over 400 industrial, office, and retail projects located in over 30 states ranging from 2,000 square feet to 2.6 million square feet in size and $1 million to $250 million in value.
$10/sq ft x 35k = $350k lease a year. Plus bandwidth, power, build out... Not tiny money, but not bankruptcy, holding a property, tax issues/abatement deals, etc.
Real situation no one in this industry is paying attention to:
"Art’s appointment is just one of several key reorganization initiatives BurstNET began earlier this year. The company is in the process of completing a SSAE 16 Audit that will assist Art’s team in customer service strategic planning for the months ahead."
So they knew about this. That's extracted from a current press release.
Someone should tell Art Faccone that advertising colo space on March 10th, 2014, and promoting that new Pennsylvania datacenter multiple times early in the ad, when Burst ownership knew the clients were going to be moved, constitutes both fraud and deception. It it the ultimate customer deception and disservice.
I never thought I'd see Burst suddenly deadpooling, but bozo the venture clown signed the deal on this self inflicted market decapitation. Put your heads right in the guillotine, willingly.
I am beginning to wonder what all this datacenter stuff in Dunmore really was about.
Like:
=== EQUALS ===
=== EQUALS ===
http://www.loopnet.com/Listing/17193948/1205-O-Neill-Highway-Dunmore-PA/
1205 O'Neill Highway
1205 O'Neill Highway, Dunmore, PA 18512
$10 /SF/Year
35,000 SF | Industrial
Total Space Available:
35,000 SF
Rental Rate:
$10 /SF/Year
Min. Divisible:
80,000 SF
Max. Contiguous:
80,000 SF
Property Type:
Industrial
Property Sub-type:
Flex Space
Building Size:
155,358 SF
Lot Size:
44 AC
Listing ID
17193948
Last Updated
18 days ago
It's a lease property.
Office/call center space, over $8 million invested in office renovations. Large open floor plan with executive offices with fiber optic cable installed throughout. 12' acoustical drop ceiling in place, but can be removed for 23' clear ceiling heights.
InSite develops, owns, and operates tenant-driven investment property nationwide. Privately held since its 1988 formation, the company has completed over 400 industrial, office, and retail projects located in over 30 states ranging from 2,000 square feet to 2.6 million square feet in size and $1 million to $250 million in value.
$10/sq ft x 35k = $350k lease a year. Plus bandwidth, power, build out... Not tiny money, but not bankruptcy, holding a property, tax issues/abatement deals, etc.
Real situation no one in this industry is paying attention to:
"Art’s appointment is just one of several key reorganization initiatives BurstNET began earlier this year. The company is in the process of completing a SSAE 16 Audit that will assist Art’s team in customer service strategic planning for the months ahead."
So they knew about this. That's extracted from a current press release.
Someone should tell Art Faccone that advertising colo space on March 10th, 2014, and promoting that new Pennsylvania datacenter multiple times early in the ad, when Burst ownership knew the clients were going to be moved, constitutes both fraud and deception. It it the ultimate customer deception and disservice.
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