Burst.net UK - Sold right? Why is UKFast Dropping BurstNet Customers?

[drmike]

Well it has been a year or so since Burst.net's UK assets were "sold".  I am quoting sold at this point, because although that is what was sold to us via press, it seems like something is afoul.

This is part of an email that went out to UKFast/Burst.net UK customers:

It is with regret that we must inform you that we will no longer be able to provide service under the Burstnet platforms that we took over last year. Your service will continue to run until it's next billing due date, please ensure that you have taken copies of any data that you require and migrated the services you currently host with us.

We can offer you service under the UKFast brand and if you require a quote for this then you can do so online

Why are they - UKFast doing away with the Burst.net customers and killing the asset they bought?

 

[jhadley]

Just a shot in the dark, but maybe Burst (UK) "sold" equipment they didn't own to UKFast as part of the deal

 

[MartinD]

Killing off the Burst UK company (liquidation) meaning they lose all the debt but hopefully grab the customers. Underhand win.

 

[drmike]

So when Burst.net bailed on their UK provider, they jumped to UKFast with 24 hours notice to customers...

This was just a nick over 1 year ago:

Subject: NOTICE: BurstNET UK Maintenance Window - IMPORTANT
Date: Fri, 28 Jun 2013 07:34:49 -0400

BurstNET Limited (http://www.burstnet.eu) is proud to announce it has partnered with UKFast (http://www.ukfast.co.uk) for our UK hosting operations. The partnership is part of BurstNET's ongoing growth strategy, and will allow us to maintain our competitive pricing in the UK market, as well as improve the performance and reliability of our services.

As part of our continuous commitment to improve services to our valued clientele, and to retain existing low pricing, we would like to hereby announce that there will be a data center migration that will be carried out on June 28th starting at 2200 hours GMT+1. We are migrating all servers from our current data center to the UKFast (http://www.ukfast.co.uk) facility, located nearby in Manchester. This move will cause some downtime for each server while it is being relocated which is expected to take approximately 4 hours. The move will be performed in phases, and downtime will be kept to an absolute minimum. This move will NOT require any changes of IP space. The typical relocation scenario for each server will include a graceful shutdown, physical move, cabinet installation, and then server boot. If you have changed login details for your server then it is advisable to provide us with the current login details so that a remote power down can be performed.

As some of the work will be performed from the new UKFast data center then you will also need to ensure that access is allowed through any firewalls for the following IPs:

[redacted]

[redacted]

We will have additional personnel onsite to oversee the relocation process and smooth transition, UKFast will also be providing a full team to assist both during the migration and through the weekend to assist our support team.



BurstNET thanks you for your understanding and patience of the maintenance window necessity, such short notice, as well as for your continued business.

 

[drmike]

Then at the very end of July 2013, Burst announced the UK subisidiary acquisition by UKFast , which went like this:

UKFast Completes First Acquisition

Deal Grows Cloud Firm's Clients by 30%

Cloud and colocation firm UKFast has completed its first acquisition, just days after appointing its M&A director.

CEO Lawrence Jones confirmed today that the firm has completed the landmark deal to purchase the UK arm of American hosting firm BurstNET for an undisclosed sum.

The acquisition, which will grow the UKFast client base by 30%, was turned around quickly thanks to the firm's recent appointment of mergers and acquisitions director Catherine Houghton.

Jones said: "We've invested heavily in best-of-breed technology and purpose-built properties to house our clients in the most efficient, secure and reliable environment. We're thrilled to be bringing our new clients on board, giving them access to a higher level of network and support that will help them to achieve their own growth plans."

Shawn Arcus, BurstNET CEO, commented: "We approached Lawrence initially to discuss the migration of a number of racks from Telecity because of the value proposition UKFast could offer. We realised quickly that UKFast, with a strong focus on the UK, could offer our UK customers an enhanced level of service."

Following the acquisition, BurstNET's customers have successfully migrated to UKFast's wholly-owned data centres.

Jones continues: "We completed the deal quickly thanks to the expertise of our latest appointment, M&A director Catherine, without whom we could have missed the boat on the sale and lost out to a competitor."

Houghton said: "This is an exciting first step in our M&A programme and we already have a number of other acquisition opportunities in the pipeline which are currently under assessment."

UKFast was advised on the deal by Pinsent Masons, led by corporate partner Howard Gill, and assisted by senior associate Sarah Flinn.

Commenting on the deal, Gill said "It was great to work with the UKFast team once again on such a strategic deal for the Group. The acquisition fits in really well with UKFast's focus on growth, complemented by strategic acquisitions.

"The deal was completed in a very short timescale once the opportunity arose, which is testament in no small part to the focus and commitment of the UKFast management team, led by Lawrence Jones and including new M&A director Catherine Houghton."

Last month UKFast launched its giant-rivalling elastic cloud solution, eCloud, which brings a level of technology to the UK only previously seen with US cloud firms like Amazon. At the start of the year, the firm completed a significant £3m deal to secure the firm's new 50,000sq ft office campus.

 

[Jack]

Well, I think BurstNET EU had a decent number of v4 so thats the only reason I can see that UKFast would be interested in them.

From what I see on that WHT thread it looks like its VPS only? Could be license related as BurstNET US widely funded VEPortal I believe?

 

[drmike]

Maybe you lads in the UK versed in structures and deals can theorize what UKFast is up with this and why... Things work differently in such matters elsewhere...

I am rather dumbfounded by UKFast's actions on this one...

 

[rds100]

Maybe they want to get rid of the "Burst" name. It brings bad karma.

 

[Lee]

From a discussion I had earlier in the week from a decent source but all unverified, the suggestion is that the deal was very much £x up front then £x over time.  Apparently equipment was sub leased to be transferred once settled but much of it never was so UKFast were left holding the baby so to speak.  But take all that with a large degree of doubt without any verification.

 

[drmike]

Could be the IPs as well - if Burst UK had received an allocation in the past / own IP block.

UKFast, for being outwardly such a big company isn't sitting on many IPs with their own allocation:

http://bgp.he.net/AS34934#_asinfo

IPs Originated (v4): 50,944

Someone metioned that current EU IP allocations are like 2048 chunks... plus we all know the cost to rent IPs over there...

I can see financing + leasing + pay a year out a sum + IP costs all contributing towards this intentional brand implosion..

 

[rds100]

Someone metioned that current EU IP allocations are like 2048 chunks...

Actually it's /22 (1024 IPs) per LIR and that's it.

 

[Francisco]

Actually it's /22 (1024 IPs) per LIR and that's it.

Still? I thought it increased to 2048 with the new space IANA gave them. Maybe I'm thinking of APNIC?

Francisco

 

[Jack]

Still? I thought it increased to 2048 with the new space IANA gave them. Maybe I'm thinking of APNIC?


Francisco

5.6 Use of last /8 for PA Allocations
The following policies come into effect as soon as RIPE NCC is required to make allocations from the final /8 it receives from the IANA. From then on the distribution of IPv4 address space will only be done as follows:

1. Allocations for LIRs from the last /8
   On application for IPv4 resources LIRs will receive IPv4 addresses according to the following:
   
   LIRs may only receive one allocation from this /8. The size of the allocation made under this policy will be exactly one /22.
2. LIRs receive only one /22, even if their needs justify a larger allocation.
3. LIRs may apply for and receive this allocation once they meet the criteria to receive IPv4 address space according to the allocation policy in effect in the RIPE NCC service region at the time of application.
4. Allocations will only be made to LIRs if they have already received an IPv6 allocation from an upstream LIR or the RIPE NCC.

 

[S-Jack]

I think it's just so they can charge people more, I am sure they'd transfer you to their machines & files for free. I left their Windows VPS when they started charging VAT & I wasn't really using it a lot it's just a private IP isn't it.