Burst.net Continues their Implosion!

[DomainBop]

It's possible that their name was on it but that the VC they got the funding started pulling strings.


They did change CEO's in the past few months and they've stepped back from WHT almost entirely.


They only had a single rep on WHT discussing the whole Dallas thing and the 'true' story never


really surfaced. There was discussion that it was billing related, I still got some bets on it


being related to the Zayo purchase. It's very much possible that the previous CEO sold off a major


part of the business? I didn't read up on if he was sticking with the business or not.

The old CEO Shawn is still with the company and is now "heading up world-wide sales for the company."

The new CEO JW Ray is also the managing partner, and founder, of the venture debt fund (Backlog Capital) that has invested in Burst. From their news page: 1/3/12 "Bustnet funded", 8/31/13 "Backlog Capital funds BurstNET's acquisition of DigiPort (DigiPort was also a Backlog financed company)

EDIT: the new CEO and his family also run a winery/vineyard in North Carolina so time for a new rumor (and possible LET thread): "Bust runs its servers out of a basement winery"

 

[raindog308]

I wonder if they still let employees colo for free.  I once read an anonymous Burst employee saying that was the only reason he worked there.

(Yes, I agree he was probably math-challenged, but...)

 

[DomainBop]

Burst.net emailed their dedicated and VPS clients today:  tl;dr the network situation in Scranton sucks beyond repair, everyone is moving to North Carolina.on Saturday night/Sunday morning (2-3 days notice).; 13-15 hours of downtime, 20% credit on April invoices for the "inconvenience"

prediction: new CEO is doing the moves to increase cash flow and revenues, company will be sold within a year

 

[Francisco]

Burst.net emailed their dedicated and VPS clients today:  tl;dr the network situation in Scranton sucks beyond repair, everyone is moving to North Carolina.on Saturday night/Sunday morning (2-3 days notice).; 13-15 hours of downtime, 20% credit on April invoices for the "inconvenience"

prediction: new CEO is doing the moves to increase cash flow and revenues, company will be sold within a year

I thought you were trolling until I saw the report on WHT:

Expect your vps server xxxxx.burst.net to will be offline for 13-15 hours starting on March 22nd, 2014. You should expect that your server will be taken off line at 8PM and will be back on line at approximately March 23rd 10AM.

As you are aware, we have had a few issues with the network at our current Scranton PA facility. After in depth evaluation over the past 90 days, it has been determined that the current facility infrastructure cannot be ameliorated to the point that we require to provide our valued clients the dependability, reliability, and performance they deserve and should expect.

We are moving all of our Dedicated and VPS clients to our new, state-of-the-art Data Center (DC) in North Carolina. Some of the many improvements for you will be:

Tier 3 Data Center in North Carolina

More Redundant Network - Current state = 2 providers.

New DC = 9 providers up to 100 GBPS available

Double the bandwidth capacity of the Scranton PA facility

Type II audited facility

Our new facility is on a high priority power grid

4MW total power

1+1 generator design

7 layer security including biometric scanning and PIN Access

During this one time move to increase our service levels and your future performance expect your servers to be offline 13-15 hours on March 22nd 2014. You should expect that your servers will be taken off line at 8PM EST and will be back on line at approximately 10AM March 23rd.

For your inconvenience, we will be discounting your April 2014 invoice by 20%.

To discuss any issues and track your server the day of the move, please log into

Holy shit.

 

[dacentec]

To be honest, I wonder if they've been bought out by the people that own dacentec now.


Francisco

We aren't involved, I saw DC74 on WHT.

 

[MannDude]

Is there any scenario where this isn't a sign of something wrong?

 

[bzImage]

It sounds like he's taking business points from @Aldryic & @bzImage >_>


Francisco

Wine is fine but whiskey's quicker.

 

[wlanboy]

Holy shit.

Second that.

I had a feeling that some vps providers get into troubles this year ... but Burst.net?

 

[qps]

Power is inexpensive in Charlotte relative to other areas, which I'm sure is driving part of the reason to move.

 

[Francisco]

Power is inexpensive in Charlotte relative to other areas, which I'm sure is driving part of the reason to move.

It's possible the backhaul fees were stabbing them in the throat pretty hard.

NC is a lot more connected I'm guessing where as Scranton was probably mostly them?

Francisco

 

[qps]

It's possible the backhaul fees were stabbing them in the throat pretty hard.


NC is a lot more connected I'm guessing where as Scranton was probably mostly them?


Francisco

Fiber backhauls are still pretty pricey in NC compared to some more competitive markets.

 

[Francisco]

Fiber backhauls are still pretty pricey in NC compared to some more competitive markets.

Yes but given the statement they made in the dedicated/vps email, it's likely that the providers they want are already ONNET or that the last-mile fees are quite low

Again, I'm pretty sure burstnet backhauls everything from NY and places like that. There's likely a few providers ONNET over there (namely the ones VD suckered) but it's quite possible they're outside of Burst's price bracket.

Francisco

 

[qps]

Yes but given the statement they made in the dedicated/vps email, it's likely that the providers they want are already ONNET or that the last-mile fees are quite low


Again, I'm pretty sure burstnet backhauls everything from NY and places like that. There's likely a few providers ONNET over there (namely the ones VD suckered) but it's quite possible they're outside of Burst's price bracket.


Francisco

The cheapest providers on net at DC74 are Cogent and XO.  Cogent is cheap there just like everywhere else, but XO is nearly 2x more expensive there than Atlanta.

The other providers on net at DC74 are probably out of Burst's price range, but I could be wrong.

 

[dacentec]

Fiber backhauls are still pretty pricey in NC compared to some more competitive markets.

That might have been true in the past, but NC has come a long way.

We are in a pretty small rural city. But there are more than a half dozen fiber providers and they all price their circuits very agressively.

 

[qps]

That might have been true in the past, but NC has come a long way.

We are in a pretty small rural city. But there are more than a half dozen fiber providers and they all price their circuits very agressively.

I just priced some out within the past month for Charlotte, so I am aware of where they are now.  They are much cheaper elsewhere.

 

[Francisco]

Welp, shit just got serious:

From http://www.webhostingtalk.com/showpost.php?p=9052829&postcount=114

So I just got off the phone with Shawn.

He called to apologize about the situation and said he was left in the dark about the decision to move to NC. Sounds like whoever took over the company is basically just screwing everyone over.

He also said he'll be leaving the company in a week.

So.. it is what it is I guess.

I guess we'll know soon if it's true or not, but I don't see why Encrypted would lie.

Francisco

 

[Awmusic12635]

This is pretty crazy

 

[KuJoe]

Welp, shit just got serious:


From http://www.webhostingtalk.com/showpost.php?p=9052829&postcount=114


I guess we'll know soon if it's true or not, but I don't see why Encrypted would lie.


Francisco

If he was really left in the dark then it sounds like they aren't going to help with relocation. My work gave me almost 2 months paid time off, free plane tickets/hotels/food, and a huge tax-free check and it was still a strenuous event for my family. It sounds like he has less than a month to move if he wants to stay employed.

 

[MannDude]

Woah, so from aside from their client base having short notice of the move their staff did as well?

Are they expecting their staff to make arrangements to move on such short notice? To relocate to a new city, to pack their family up or leave their friends behind in a place they're already well rooted?

 

[rds100]

I don't see why the staff answering tickets, doing billing, sales, etc. should move. Sure, they need some staff at the DC, but not all staff needs to be near the DC.