Software, Digital Content, Geopolitics, Economics & More from of a Libertarian Serial Expat and Entrepreneur
In: business models25 Jan 2008
A few months ago, a rep at Rackspace (one of our two hosting companies at the time) laughed at me when I unfavorably compared their bandwidth rates to Amazon’s. I mean, he actually laughed. I probably got started in the IT business before the brat even got out of high school. They chose to have a different business model than Amazon, told me the smug fuck. Well dude, when a behemoth such as Amazon, which probably spends more on IT each year than your company is making in revenue, choses to enter your market, you pay attention rather than dismiss it outright. I guess your business model is “charge ten times what Amazon charges for the pretty much the same bandwidth, only insult your customers for the privilege.” How about paying a little respect?
So Racketspace at the time strong-armed me into renewing for another six months to avoid bandwidth overuse that was mostly their fault because of poor application monitoring. They wanted to charge us thousands of dollars for traffic between a web server and a database server that we had put on the same LAN on purpose! The bottom line is, we’ll be finished with Rackspace in a few weeks (still a few domains to migrate) and I’ve made it company policy not to do business with them from now on. Memo to Rackspace: Economics that are impossible to stop. (Well firing the biz dev people in charge of our account would do the company well too, but I suspect their behavior was par for the course for a company whose support reputation is way oversold.) I’m sure Rackspace works for some people, if you like being gouged with bandwidth rates from 2003 that is.
For people looking for hosting, if you don’t have your own sysadmin, Pair.com is a much better host than Rackspace. We have our own sysadmin now though, so we’re in the process of leaving pair.com too since they don’t provide root access on dedicated leased servers, which if you ask me is crazy. We get much more powerful servers for the same price at Canvas Dreams and can fully administrate them, save for remote rebooting I’m told, which should be rolled out soon (insert protocol name I can’t remember).
I'm CEO of an online trade publishing firm in the marketing and defense verticals. We try to make news and data digestible and useful in an environment that is more noisy each day. This personal blog mixes my thoughts and interests on politics, business, software, and more, based on my business and personal experiences. Over the years I have posted items that turned out spectacularly wrong, and a few posts that stood the test of times better. Personal views only.