ColoCrossing / VSNX Starts it's Hostile Takeover of the LOWEND VPS Market

[drmike]

It's official, ColoCrossing just made an offer for lowend / low priced VPS packages.  This move puts ColoCrossing directly in competition with the slews of VPS companies that rent dedicated servers from CC for selling VPS offers.

The offer is via the Hudson Valley Host brand, which last week was forced to admit to being a CC owned front as far back as to mid 2013.

Offer here:

http://lowendtalk.com/discussion/21201/hvh-99-off-1st-mo-on-all-unmanaged-vps-plans-let-special-50gb-hdd-2gb-ram-2tb-bw-1-ip-7-mo

Don't worry, there is another direct CC house brand (i.e. the parent incorporated entity) with a recently spruced website that prominently features none other than VPS packages on the homepage.

 

[Virtovo]

Don't worry, there is another direct CC house brand (i.e. the parent incorporated entity) with a recently spruced website that prominently features none other than VPS packages on the homepage.

Oh really?

http://www.velocity-servers.net/

 

[Francisco]

Oh really?

http://www.velocity-servers.net/

I'm not getting the 'oh really' part >_>

It comes off like you're trying to prove him wrong but then provide the very domain.

Anyway, for a lot of providers they're in a position of "They can't leave CC even if they wanted to

in protest". I've never been happy when a provider competes with their own customers. There's a lot

of markets that we simply stay out of because we know there's users that use our services for

that very thing and would rather things stay good between us than us make a quick buck.

Francisco

 

[Aldryic C'boas]

I've never been happy when a provider competes with their own customers.

Pretty much why I've never been in favour of having a reseller system.

 

[Virtovo]

I'm not getting the 'oh really' part >_>


It comes off like you're trying to prove him wrong but then provide the very domain.

Just agreeing; however making it clear that it's not a very large jump to work out which!

 

[DomainBop]

My problem with that LET offer (and the HVH writeups on LEB) is that there should be a disclaimer in the offer stating that HVH is owned by Velocity Servers Inc which also owns LowEndTalk/Box.com

On another note: Maarten and his merry band of thread title changers have been busy again.  The thread "ChicagoVPS support SUCKS!" is now titled "ChicagoVPS Misunderstanding of unmanaged support"

 

[Francisco]

Pretty much why I've never been in favour of having a reseller system.

I don't think resellers are a big issue since it's on them to figure out their own market.

If CC launched a fully managed, high end (& higher priced) offering that didn't touch LE pricing at any point?

Then I don't think anyone would have a complaint.

It's shitting where you're eating (which I know is funny for me to say given it's me after all) but now

users have to compete with their own DC for a signup. Assuming the equipment is paid off, a single node

probably runs CC $20/m with bandwidth, support, solusvm, & power. It's probably less if Jon got better deals.

Everyone else, though, is going to be in the $75/month+ price backet, depending on if it's colo, etc.

Francisco

 

[Aldryic C'boas]

Perhaps they've simply gotten tired of the middleman drama, and have decided the fastest way to expand in that venue would be absorbing all of their clients that can no longer afford the rent on their gear now that they're having to compete with their upstream.

 

[Nett]

LOL @ CC

 

[wlanboy]

Looks like they push the "everything is totally perfect with CC companies" thing too hard.

They are changing too many topics too fast - it is hard to keep track on the threads I want to follow.

I

 

[jarland]

Oddly I've always been in the camp of...I'm totally alright with a provider competing in the same space as their clients. However, they need to be honest in their dealings and they need to be aware that there will always be others who would be happy to take their clients off their hands should they mistreat their clients due to this.

It's all about trust. I believe it's alright because I believe you shouldn't be dealing with someone you wouldn't trust anyway. Then again, I've never felt a strong sense of competition. When me and Ryan started doing VPS with Catalyst I never even gave a thought to taking sales from all the providers that I appreciated, so maybe I'm just the odd one in the bunch, but I think people should just be able to separate anything that may be a conflict of interest and not let the one impact the other.

 

[jenok]

lol, What a company.

 

[bauhaus]

Suddenly March 2015 makes sense. Maybe his plan is to bankrupt the entire lowend market using price dumping, or at least kick out a few players. I know it sounds crazy, but heck, they look so confident about it, and we all can dream, right? Maybe also explain the IP hoarding.

EDIT: Tinfoil ahead

 

[Coastercraze]

More like control the LE* market and then surprise everyone with a massive price hike.

 

[MannDude]

This isn't new though, is it?

When a company purchases a website like LEB/LET, do you not expect them to use it for their own advantage? The more a CC customer sells, the more their needs with CC grows. It all trickles up. The sites were a business investment when they purchased them.

 

[joepie91]

My problem with that LET offer (and the HVH writeups on LEB) is that there should be a disclaimer in the offer stating that HVH is owned by Velocity Servers Inc which also owns LowEndTalk/Box.com

On another note: Maarten and his merry band of thread title changers have been busy again.  The thread "ChicagoVPS support SUCKS!" is now titled "ChicagoVPS Misunderstanding of unmanaged support"

They're changing thread titles all over the place now, to make them more "politically correct", so to say. It's not just limited to ColoCrossing threads. That said, I'm absolutely not happy about this new moderation trend. What's wrong with a [solved] tag?

 

[Aldryic C'boas]

Suddenly March 2015 makes sense. Maybe his plan is to bankrupt the entire lowend market using price dumping, or at least kick out a few players. I know it sounds crazy, but heck, they look so confident about it, and we all can dream, right? Maybe also explain the IP hoarding.

Not really (regarding the March 2015 claim)... many budget providers try to copy what we offer, but we haven't been "low end" (it's a mindset, not a price point) in quite some time.  Some loudmouth fronting a lowqual VM company not even qualifying as competition doesn't really concern us any.

 

[drmike]

It's all about trust. I believe it's alright because I believe you shouldn't be dealing with someone you wouldn't trust anyway.

No way anyone should be trusting CC and related companies.

Just remember how they STOLE LowEndtalk.com and LowEndBox.com.   Remember how they lied about that for a good portion of a YEAR.

The HVH stuff, that discovery only happened because WHT was on the matter and smelled blood and the victim of a refund refusal wouldn't shut up and go away.   That HVH ownership / "investment" went on for a big chunk of a year.  

Pattern here?

Remember the constant IP grabbing, IP soiling, hosting of unsavory material on their network, failure to address IRAN matters (other than to advise folks to HIDE it better).

It's time CC operates like a normal business because other folks livelihoods are intertwined with it.  Not everyone is a high school child with a pre-tend-a-business.

Just remember, if you are selling and ColoCrossing, ChicagoVPS, etc. is buying take the option of selling outright for cash upfront.  Take a lump sum (even if less) and leave with your reputation in tact, especially if you want to be employed in, or offering products in this or related data segment in the future.

 

[Damian]

I've never been happy when a provider competes with their own customers. There's a lot


of markets that we simply stay out of because we know there's users that use our services for


that very thing and would rather things stay good between us than us make a quick buck.

Well said; one of our pending suppliers was doing something similar, and when we complained about it, we got talked down to. They seem to have come to their senses though, so it's all good now.

 

[AuroraZero]

No way anyone should be trusting CC and related companies.

Just remember how they STOLE LowEndtalk.com and LowEndBox.com.   Remember how they lied about that for a good portion of a YEAR.

The HVH stuff, that discovery only happened because WHT was on the matter and smelled blood and the victim of a refund refusal wouldn't shut up and go away.   That HVH ownership / "investment" went on for a big chunk of a year.  

Pattern here?

Remember the constant IP grabbing, IP soiling, hosting of unsavory material on their network, failure to address IRAN matters (other than to advise folks to HIDE it better).

It's time CC operates like a normal business because other folks livelihoods are intertwined with it.  Not everyone is a high school child with a pre-tend-a-business.

Just remember, if you are selling and ColoCrossing, ChicagoVPS, etc. is buying take the option of selling outright for cash upfront.  Take a lump sum (even if less) and leave with your reputation in tact, especially if you want to be employed in, or offering products in this or related data segment in the future.

I personally have nothing against a host to utilizes CC network or resources. They are cheap and I realize this fact. The only problem is you are also "getting into bed with the devil" as the saying goes. Once this happens it also sullies your name with their problems. At least it does in my eyes, and it probably does in many others eyes as well.

This being said, I stay away from your services. Yes just for the fact that you utilize those services is enough to drive me away from you. I will not be caught up in their problems at all. It is not something I want to deal with, nor do I want any of  my customers to have to deal with either.

This is a general statement and not directed at any one host in particular.