amuck-landowner

Shardhost Info - Urgent Client Action

drmike

100% Tier-1 Gogent
From LEB offer:

"They currently serve over 3500 clients on their fully owned vps hardware."

How does a company with 3500 clients go instantly tits up?
 

Francisco

Company Lube
Verified Provider
I can't be 1000% sure. No one can. The filing also did say they have assets. This is likely hardware.

If it was rented - I wonder why there just wasn't a spat on LET about payment and cc like some other threads we've been seeing :)
Maybe it was owned before they moved into CC Dallas?

Francisco
 

Francisco

Company Lube
Verified Provider
From LEB offer:

"They currently serve over 3500 clients on their fully owned vps hardware."

How does a company with 3500 clients go instantly tits up?
Hostrail had like 10k active VM's or something like that.

Francisco
 

mightyschwartz

New Member
Atleast Shard didn't email saying CC are increasing our bills by 65% we need more money.
I would have paid to have access for one more day... I now am out one year of prepaid service and a little data. Nothing major, but 1 hour notice is classless.
 

drmike

100% Tier-1 Gogent
Hostrail had like 10k active VM's or something like that.


Francisco
Really?  All I can say is how stupid.  

If you have thousands of customers, that has value.  At minimum moving them to another viable company is good business sense.  Monetarily, perhaps not profitable, but should yield something to at least pay some of your debt.

There is a reason why you see "fire" sales and other closeouts... It's because of foreseen failure and inability to continue.  It's proactive right thing to do.  A hosting company at such scale didn't fail yesterday magically.
 
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Francisco

Company Lube
Verified Provider
The problem hostrail had was they charged pennies per VPS and would give away a lot of VM's just because.

When they closed they had something like $20k in debt owed to limestone networks.

When clubdowntime went bust the rumour was that they owed $40k+ between them and brohoster.

Francisco
 

fizzyjoe908

New Member
Verified Provider
This is weird. I know the DaddyCheese / ShardGaming portion of the company had several thousand active Minecraft hosting clients but they did get hit pretty hard during the last WHMCS exploit.
 

Francisco

Company Lube
Verified Provider
Less than an hour intact. My email came through at 18:55 GMT, reports of the nodes shutting down started coming in at 19:40 GMT.
Good christ.

Well, Jon claims he knew nothing of this shutdown and I'm kinda believing that. Shardhost has already ripped their entire twitter down and ran for the hills.

Maybe the data breach costs were huge?

Francisco
 

drmike

100% Tier-1 Gogent
Forgive my stupidity, but cleaning up from data issue would be time, usually.  Unless they got compromised and wiped.  

It would have costs, but shouldn't KO a company.

Even if they got gut punched by the WHMCS issue, that damage should have been reported to customers back then.   Can't say if they communicated, but I suspect they didn't say much.  Right?
 

MannDude

Just a dude
vpsBoard Founder
Moderator
I thought the WHMCS exploit was back in March? That's the one where the emailed clients.

Unless they were hit again?
 

WebSearchingPro

VPS Peddler
Verified Provider
I thought the WHMCS exploit was back in March? That's the one where the emailed clients.

Unless they were hit again?
My dealings are with U.S. Law so I'm not quite sure to what extent this may be applicable.

http://www.legislation.gov.uk/ukpga/1998/29/contents

ShardHost was a company registered in the UK, where their data was stolen, maybe someone took legal action against ShardHost. 

The thing is there are just to many possibilities to cover, we will have to wait for an official announcement or perhaps a leak from a former employee. 
 

concerto49

New Member
Verified Provider
My dealings are with U.S. Law so I'm not quite sure to what extent this may be applicable.

http://www.legislation.gov.uk/ukpga/1998/29/contents

ShardHost was a company registered in the UK, where their data was stolen, maybe someone took legal action against ShardHost. 

The thing is there are just to many possibilities to cover, we will have to wait for an official announcement or perhaps a leak from a former employee. 
Legal action is a possibility. The other thing I can see is tax implications. They could have been filing tax returns and the accountant realized the numbers didn't add up etc?
 

mightyschwartz

New Member
You don't just close up shop with less than 1 hour notice. Even if there were circumstances beyond their control, they knew about them way earlier than they shut down servers. They chose to continue accepting money for services they knew they would not be able to deliver. I would rather have been told and allowed to seamlessly move my test env, but they chose to bend their customers over until zero hour.
 
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DomainBop

Dormant VPSB Pathogen
Forgive my stupidity, but cleaning up from data issue would be time, usually.

Potential fines and lawsuits are the main thing to worry about when there is a database breach.

WHMCS exploit...........Unless they were hit again?

Shardhost sent out an email on October 3rd notifying customers that their WHMCS database had been breached.  On October 21st they sent out another email notifying clients of a WHMCS password reset.

My dealings are with U.S. Law so I'm not quite sure to what extent this may be applicable.

http://www.legislati...998/29/contents

ShardHost was a company registered in the UK, where their data was stolen, maybe someone took legal action against ShardHost.

Copying and pasting one of my old LET posts...UK databreach requirements:

The security breach notification sent to customers should include the following information:


3) Notify breaches to your subscribers

You may also need to tell your subscribers. If the breach is likely to adversely affect their personal data or privacy you need to, without unnecessary delay, notify them of the breach. You need to tell them:

your name and contact details


the estimated date of the breach


a summary of the incident


the nature and content of the personal data


likely effect on the individual


any measures you have taken to address the breach


how they can mitigate any possible adverse impact of the breach

You do not need to tell your subscribers about a breach if you can demonstrate that the data was encrypted.

If you don’t tell subscribers, the ICO can require you do so, if it considers the breach is likely to have an adverse effect on them.


notification that should have been sent to ICO:


Service providers must notify the ICO that a personal data breach has occurred within 24 hours of becoming aware of the basic facts . Full details must be provided as soon as possible. The ICO provides a secure online form for all notifications
 
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