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View Full Version : Should we Sign it?


Rewdog
06-21-2001, 10:01 PM
Hi, we were the leading reseller for stg.net aka webhost.fm, but we have decided to move on to our own server ect. We were thinking about buying our own server from dell, and colocating it with stg.net for 2 dollars per gig of bandwidth, and we only pay electricity and bandwidth. They would also switch all of our accounts over and give us our current control panel. Well, over the past few days this guy called up my partner and said he wanted us for his business. He offered us our own dedicated server and we had total control over it. He said he would also switch all the accounts over (I was a little skeptical of how he could do it) According to my partner, we would also recieve 50 gigs of bandwidth and there would not be a setup fee. So we get the contract today, and I read over it and I'm not extremely please with it. I've included the contract, please give me your opinions on if we should go with this guy, go with stg.net(there colocation isn't up right now and are not very prompt) or we should keep on looking.

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I am very please to submit to you this contract to provide your company with dedicated server services. This is to summarize the main contract and is therefore subject to and append the terms of the attached “Network Access Agreement.
ComputechZ Inc. will provide the following services to eMegaWeb.com Inc.
· A server loaded with the following, dual Pentium III 866Mhz, 512 Mb RAM, dual 20gigabyte hard drives (configured with Fault tolerance RAID 1) in a Mirror set, Loaded with RedHat Linux 7.1 and configured as a web server.
· ComputechZ Inc. will cofigure the machine with the control panel of your choice. We can Supply PLESK at no additional cost. Any other control panel that may be chosen may also be configured. Any costs or monthly fees or setup fees associated with any other control panel will be paid by eMegaWeb Inc.
· ComputechZ Inc. will also provide regular service and reboots etc. Any service found to be due to customer negligence will be billed at a rate of $75/hour billed in 15 minute increments. Any hardware failures are covered by the manufacturer warranty and fall under ComputechZ Inc.’s 8 hour service contract.
As previously agreed ComputechZ Inc. will provide the above services for a period of one (1) year from ____/____/_____ . After a period of one year eMegaWeb.com has the option to continue for a period of one (1) year at a rate not to exceed the original amount.
Rates and Terms are as Follows:
$400.00 per month for 1u of rackspace and 30 Gb/month total data transfer. Overages in bandwidth will be billed at $3.00/Gb billed in 50 Gb blocks. Additional bandwidth may be pre-paid at a rate of $2.75/Gb and may be purchased in 50 Gb blocks. There is a setup fee of $200.00 per server (additional charges for Control Panel setup are paid by the customer) The total amount to be tendered at the start of this contract is $1200.00 ($400 first month + $400 Last month + $200 setup fee + $200 security/service retainer.)
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Part 2 (I've included what seems to be the least blah blah)-Rewdog
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1. Charges to Customer – Customer agrees to pay a one-time setup fee of US$200.00 . Customer agrees to pay a recurring MONTHLY flat fee of US$400.00 for services provided under this agreement. This flat fee is for all services provided hereunder until and unless Customer's usage of the server exceeds 30 gigabytes of aggregate data transfer per month. Customer shall be charged US$3 per 1 gigabytes data transfer in excess of 30 gigabytes billed in 50GB blocks, in any calendar month from Customer's server. In regards to bandwidth, customer may also opt to prepay for blocks of bandwidth at a discount rate of $2.75 per GigaBytes. This Agreement shall be effective as of the date first written above and shall continue for a term of One (1) year. This Agreement shall automatically renew, in full, for One (1) year periods unless Customer or ComputechZ Inc. notifies the other party in writing thirty (30) days in advance of the termination of the current One (1) year period ( ComputechZ Inc. will adjust the payment to the original quoted price of $400.00) ComputechZ Inc. lowers the recurring monthly flat rate for Customer’s configuration within 30 days of the signing of this agreement for all subsequent months the customer will received the benefit of the new lower price established during the 30 day period. Customer shall pay any applicable federal, state or local use, franchise, excise, sales or privilege taxes, duties, fees or similar liabilities chargeable to or against ComputechZ Inc. resulting from the services furnished by ComputechZ Inc

4. Service – Customer understands and agrees that occasional temporary interruptions of Internet Services may occur and agrees that under no circumstances will ComputechZ Inc. be held liable for any financial or other damages due to such interruptions. In no event shall ComputechZ Inc. be liable to Customer or any other person for any special, incidental, consequential or punitive damages of any kind, including, without limitation, refunds of fees, loss of profits, loss of income or cost of replacement services.

9. Assignment – ComputechZ Inc. may assign this Agreement without Customer's prior written consent. Customer may assign this Agreement with the prior written consent of ComputechZ Inc. Such consent shall not be unreasonably withheld.

Rewdog
06-21-2001, 10:08 PM
I left some stuff out, sorry........
30 gigs of bandwidth, right now we offer 5 gigs per client without and extra charge if we go over. We pay stg.net 5 dollars per account and we never get charged anymore. We have about 100 customers, so only 6 of our customers can use what they signed the contract for. Please note the guy offering us the deal will give us plesk for free and install software.

MCHost-Marc
06-21-2001, 10:24 PM
Originally posted by rewdog
Rates and Terms are as Follows:
$400.00 per month for 1u of rackspace and 30 Gb/month total data transfer.

I personally think $400 is bit too much for a server and only 30GB's of bandwidth.

Originally posted by rewdog
We pay stg.net 5 dollars per account and we never get charged anymore.

Huh?!!!!! :eek:

Update: I've just checked their website @ http://www.stg.net/ and also http://webhost.fm/ . They don't look too professional - and their stg.net logo looks like its designed by a 6-year old (to be honest). I am sure you can find better deals out there. :)

Rewdog
06-21-2001, 10:28 PM
whoops, forgot the space. meant any more. Like we don't get charged extra if someone uses 30 gigs of bandwidth instead of 5. We still have to pay monthly. Sorry, i'm getting slow tonight :cP

MCHost-Marc
06-22-2001, 12:49 AM
That somehow isn't clicking in my head. They have to pay for the bandwidth too ;) If you are looking for good dedicated servers, check out http://www.site5.com/ , http://www.burst.net/ or http://www.venturesonline.com/ :)

Tim Greer
06-22-2001, 05:21 AM
Originally posted by Kiwi


I personally think $400 is bit too much for a server and only 30GB's of bandwidth.



Huh?!!!!! :eek:

Update: I've just checked their website @ http://www.stg.net/ and also http://webhost.fm/ . They don't look too professional - and their stg.net logo looks like its designed by a 6-year old (to be honest). I am sure you can find better deals out there. :)

The owner (Scott) isn't a designer, but he is a pretty good tech and he does find quick solutions and does a lot of custom hacking if it's needed to get better performance or better security. I haven't talked to Scott in years, but he's a good guy and knows what he's doing, isn't afraid to admit what he doesn't know and is always willing to learn and improve. We all need to do that, but rarely to people actually do it. At one point, the disk space on his servers were oversold, but he quickly fixed that and added more drive(s). I never noticed any other problems, but it's been a long while, so I don't really have any information about his service anymore. However, he did offer a good package and really did live up to it -- and he didn't just ignore his clients. If you have a good enough deal, I'd personally suggest to stick with him, because from what I know of Scott, you can trust him and he will go beyond the call of duty for you. Of course, I'm not going to say someone like Site5 isn't worth looking into either.

AH-Tina
06-22-2001, 08:29 AM
Yikes. I wouldn't go with either of those places. Keep looking.

--Tina

Duster
06-22-2001, 02:41 PM
Originally posted by rewdog
I read over it and I'm not extremely pleased with it.
That should tell you something. Trust your instincts.


Overages in bandwidth will be billed at $3.00/Gb billed in 50 Gb blocks. Additional bandwidth may be pre-paid at a rate of $2.75/Gb and may be purchased in 50 Gb blocks.

That means when you go over your 30 gb allotment, even if by as little as 1 gb, your bill goes up $150 (or $137.50 if prepaid),. No thanks. There are hosts that charge per gb, not per block of gigabytes. The difference is substantial.


There is a setup fee of $200.00 per server (additional charges for Control Panel setup are paid by the customer) The total amount to be tendered at the start of this contract is $1200.00 ($400 first month + $400 Last month + $200 setup fee + $200 security/service retainer.)
Aside from the monthly fee possibly being high depending on the server configuration, they would be holding on to $600 of your money. I could understand a final month or a retainer, though charging both seems excessive without having demonstrated a greater than anticipated bandwidth usage or some other justifiable need. They could always shut you down if you didn't pay promptly. To charge you $600 (I presume you wouldn't even receive interest on the money) against that eventuality seems a bit much.

Unless it is an exceptional server (RAID array, backups included, etc.) $400 is high, especially for only 30 gbs of transfer. You can do much better. I would suggest you continue your search.

tubedogg
06-22-2001, 03:46 PM
Originally posted by Kiwi
If you are looking for good dedicated servers, check out...http://www.burst.net/...I would stay away from Burst. I know of at least 4 different people who have gotten servers there who are extremely dissatisfied with their service.

nopzor
06-22-2001, 06:01 PM
I'd seriously consider Computechz; they seem to be on top of things.

dawolf
06-23-2001, 03:28 AM
Thank you Nopzor,

Coming from a company who is at the cutting edge of this business that means alot.

Ray