Slashdot Mirror
Identifying and Avoiding Dishonest Hosting Providers?
An anonymous reader asks: "Recently I have had the (dis)pleasure of dealing with the buyout and resulting problems problems of Managed.com by WebHostPlus, Alphared (aka Orangefiber) being dishonest about backup facilities (no power backups and not multi-homed), and CalPop overselling bandwidth. What can we do to protect us from these companies, they all seem to be have web sites and be real companies, but we seem to get scammed by them. The dishonest ones look a lot like the honest ones. We can't afford the attorney's fees or to build a data-center, and that is why we pay the monthly fee to host a server, but the companies do not have what they claim to, nor do they care about the customers. We contacted two attorneys in the United States and they said that the companies didn't have any assets worth going after. What does Slashdot think of these problems and what can we do to avoid them?"
Somewhere in there, you will have a credit analyst. Make friends with this person. They will have access to Dun & Bradstreet reports, paydex scores, and a host of other information about the hosting provider. They are the best people in most companies to research other companies -- because that's what they do for a living.
In a smaller company, it might make the most sense to speak to the department head/CFO, because you don't want their normal sales analysis, but rather a dependability analysis (similar, uses many of the same things, but not automated).
If you have questions, ask for CPA certified financials -- or at least a letter of attestation from a CPA firm that says they own/lease the multiple facilities, lines, etc. and that the company and pricipals are financially sound.
We are a small ISP/hosting/consulting firm and just because we're small doesn't mean we can't/don't offer quite a few of "extras" like generator power multi-homed and plentiful backup space. Just because a company is small doesn't mean they can't provide. But at the same time you can't take their word for it either. Find out where their facilities are and ask for a tour. Sometimes a tour might not be possible due to security restrictions on facilities, but that doesn't make it any less likely that they can't provide. For example we are in a building that's shared by about 30 other companies. While I could allow you access to our areas, I couldn't get you into the rest.
Doing your homework is always best. The internet is a wonderful tool and when used properly the answers to all your questions are out there. I say this often, and it holds true in just about everything. Cost is always a concern noone wants to spend more than they have to, but if someone is selling you an entire cabinet for $400/mth power included, I would question where they are making their money. That's not to say that you should willingly pay $2000 for a single cabinet, but cost and quality are usually related to each other.
Referrals are probably one of the best ways to go. Because we are small and are forced to compete with the big guys we have to cut corners. While I refuse to cut corners where it matters, I have to shave on the "extras" that aren't necessary for operations. For example, instead of spending $100k on advertising a year, we buy equipment. Instead of buying $2k desks and $8k conference tables, we buy....equipment. I think you get the idea. Since we spend very little money on advertising our growth comes specifically from word of mouth. There are plenty of good providers out there just like us that operate the same way.