amuck-landowner

Virtual6.net Ceases Operations for unforeseen reasons :)

Francisco

Francisco

Company Lube
Verified Provider
Mao_Member_no_signature said:
Yes, I predicted them for an year or more, pump and dump schemes no longer work, even straight out scams have a hard time, this is due to a combination of factors.

2014 will be another hard year.
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I think this year is going to be made up of a lot of mergers or just straight deadpools.

The 'problem' I see stemming from that is certain companies buying out a controlling share of a host and staying in the shadows so the operation

looks to still be owned by the original owner.

Francisco
 
M

maounique

Active Member
Francisco said:
The 'problem' I see stemming from that is certain companies buying out a controlling share of a host and staying in the shadows so the operation looks to still be owned by the original owner.


Francisco
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Nah, nobody will buy crap and these things usually dont go well, sooner or later the "partners" will have a quarrel and it will be public. If they can work things out, ok, but these will be rare occurences, the customers would be lucky.

The problem is not only for LE market, but it starts here to show because the cushions are much smaller and people dont sit on millions from VC. Even the mighty OVH with lots of investments had to cut the crazy expansion policy coming back to earth this move will be followed by others, this year will amaze people on how bad will be.
 
Francisco

Francisco

Company Lube
Verified Provider
Mao_Member_no_signature said:
Nah, nobody will buy crap and these things usually dont go well, sooner or later the "partners" will have a quarrel and it will be public. If they can work things out, ok, but these will be rare occurences, the customers would be lucky.

The problem is not only for LE market, but it starts here to show because the cushions are much smaller and people dont sit on millions from VC. Even the mighty OVH with lots of investments had to cut the crazy expansion policy coming back to earth this move will be followed by others, this year will amaze people on how bad will be.
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No no, there is no partners in those deals.

Said 'partners' buy a controlling share (51% or the whole boat) and the past staff (usually owner included) stay on to man the ship.

I agree with the OVH comment. OVH realized that they were competing with only themselves in the end and it hurt.

Francisco
 
M

maounique

Active Member
Francisco said:
No no, there is no partners in those deals.


Said 'partners' buy a controlling share (51% or the whole boat) and the past staff (usually owner included) stay on to man the ship.
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Right, this is what i mean, the current staff will have no interest to continue or will have other grievances with the 'partners' and it will go south fast. UGVPS was just an example on the extreme side but many other smaller problems can make these things die.
 
M

maounique

Active Member
drmike said:
Didn't OVH get a good chunk of government dole out cashola too?
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Sorry about no-edit, etc.

If they did, it might be a time-bomb. In EU the press is not so gagged like in US, they are not afraid of picking on the government and if found out the aunt of Oles was friends with some minister, then it will blow out and the investigations will run around the clock. You can be sure they will find something at least looking suspicious.
 
Francisco

Francisco

Company Lube
Verified Provider
Mao_Member_no_signature said:
Sorry about no-edit, etc.

If they did, it might be a time-bomb. In EU the press is not so gagged like in US, they are not afraid of picking on the government and if found out the aunt of Oles was friends with some minister, then it will blow out and the investigations will run around the clock. You can be sure they will find something at least looking suspicious.
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That's what I heard at least. They had some sort of large loan that was mostly backed by a few EU banks (like 100M of it was from the alone or something insane like that).

When they saw that they were harvesting their own customer base they had to quickly change gears or they're going to have a hard time meeting payments.

Francisco
 
vRozenSch00n

vRozenSch00n

Active Member
Mao_Member_no_signature said:
Yes, I predicted them for an year or more, pump and dump schemes no longer work, even straight out scams have a hard time, this is due to a combination of factors.

2014 will be another hard year.
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Unless you have a strong customer base and maintain a good cooperation with fellow providers to maintain a stable market.
 
M

maounique

Active Member
When providers cooperate this smells like a cartel. It looks like CC kind of stuff I buy your brand, you work for me, we pass customers from one site to another but in the backend we use the same old servers.

I hope you do not mean that. I am all for healthy competition, without threats and blackmails, though, we can still be friends and stab each other with the price-cutting knives and crush our heads by the bluntness of quality.
 
MannDude

MannDude

Just a dude
vpsBoard Founder
Moderator
Ash said:
In the empire business.
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What I don't like was Ash's arrogance, coming on here saying he was in the 'empire business'... Now he is on WHT looking for a job that pays minimum  wage.

That doesn't sound like an 'Empire Business'... sounds like his past companies that he sold didn't yield much money, or he spent it all unwisely, and that this new company didn't make much, and bills are due...

His name in the industry is tarnished. He'll be back with an alias / fake name. That's how this game is played.
 
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vRozenSch00n

vRozenSch00n

Active Member
Mao_Member_no_signature said:
When providers cooperate this smells like a cartel. It looks like CC kind of stuff I buy your brand, you work for me, we pass customers from one site to another but in the backend we use the same old servers.

I hope you do not mean that. I am all for healthy competition, without threats and blackmails, though, we can still be friends and stab each other with the price-cutting knives and crush our heads by the bluntness of quality.
Click to expand...
Not that kind of cooperation or cartel. At least there is a cooperation among providers to stabilize low end price.

I learn that from how China be able to penetrate international market including many mainland Chinese kids are trying to buy half dead hosting companies and established their business from the US through surrogates. :) 

Look at this picture. $0.5 profit in the US is a measly number but when you convert it to third world currency.... :)
 
M

maounique

Active Member
vRozenSch00n said:
Not that kind of cooperation or cartel. At least there is a cooperation among providers to stabilize low end price.

I learn that from how China be able to penetrate international market including many mainland Chinese kids are trying to buy half dead hosting companies and established their business from the US through surrogates. :)

Look at this picture. $0.5 profit in the US is a measly number but when you convert it to third world currency.... :)
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"Stabilizing" any price is still a cartel business. If the price is too low you get out of the market and it stabilizes itself.

As for the people trying to revive dead companies that is a lot of work, good luck to them.

While chinese currency is artificially devalued, this does not mean 0.5$ can sustain anyone, you need at least 200 $ to survive from what i know. Besides, when the DC will slap a 250$ fee for spamming, you need 500 VPSes in that month's profit to pay it. IIf the profits so low are important for the investor, then the investment required is impossible to meet and risk.
 
drmike

drmike

100% Tier-1 Gogent
Mao_Member_no_signature said:
Yes, I predicted them for an year or more, pump and dump schemes no longer work, even straight out scams have a hard time, this is due to a combination of factors.

2014 will be another hard year.
Click to expand...
:)  How nearly spot on... A year later and Ash's prior company reappears in Zombie mode...

But Mao is right, the pump and dumps are out of track area.   Even if you pump a company up with customers on the VPS side, it's hard selling that business.  Margins usually are blah, customers have no loyalty or stick, unless you stuck them on those annuals or multiple year plans (which means no income for a company purchaser) and buyouts lead to big chunk of customers leaving.

People doing deals in that lowend swamp are like a dime per container, maybe a bit more if you aren't entirely shit.

At this point, if you aren't in this to run a company long term, quit taking a dump in the public pool.
 
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