Hi,

I would like to know what do you guys/girls think of Rachshack business model? Do you think they are in this business for long term? I mean their prices are very competitive.

I don't know much about Rackshack so hope someone could give me some information.

Thanks :)

Although it is poor for a host to comment on the affairs of a competitor as a cusomster you must look objectively at Rackshacke.

They are still around despite competitive prices, but then again from a hosting point of view I would keep a critical eye on them as their long-term survival will be determined by their margins [that are low] which allow them to re-invest and grow.

I wouldn't critise them but just keep an eye out.

A good question to ask any host is how many total servers they have in their facilities. And how many facilities they operate. The more facilities they operate does not mean the more revenue they have actually most of the time quite the opposite. Twice the techs, twice the buildout costs, = twice the overhead. A good percentage of hosts are not making money right now they are just looking for market share gambeling that long term they will make money. The old throw the dice. Look at Exedus for example. I cannot comment on rackshack you must ask the questions.

JJ

I think there are tons of threads on this, complete with posts from a higher up at RackShack. Just do a quick search.

their long-term survival will be determined by their margins [that are low] which allow them to re-invest and grow.


Let's see...

New Data Center (28k feet)

New Juniper Routers

New ser vers by the hundreds

etc, etc, etc.

We're confident that $99 is the place to be. Sure, the margins are tight but they are working.

Our company , E.I. Partners, Inc. owns Rackshack and Everyones Internet and spins about 12% of gross revenue to the net income bottom line.

When we had 300-400 servers, we were in the hole big time. But, as our server base grows, we continue to grow our profits.

Robert Marsh
Head Surfer Rackshack.net

So Robert is Rackshack a profitable company yet?

Originally posted by headsurfer

When we had 300-400 servers, we were in the hole big time. But, as our server base grows, we continue to grow our profits.

The question still remaines is Rackshack profitable or I.E. Partners, Inc?

Sorry, misread the question...

Yes, we are profitable at the holding company level as well as the operating co level (Rackshack and Everyones Internet).

The only thing we lose money at is DSl, so, you can guess it, we no longer sell new DSl accounts.

Take your worst hosting nightmare, multiply by 1000, and you have the average DSL install by a Dlec. But, that is another forum.

Robert Marsh
Head Surfer Rackshack.net

headsurfer, I am very sure that you are not going to be in the ded. business for long term if you keep your business style. and if you want to know why, then read this:

http://www.webhostingtalk.com/showthread.php?threadid=28438

and this

http://www.webhostingtalk.com/showthread.php?threadid=26793&highlight=nightmare+RackShack

and this

http://www.webhostingtalk.com/showthread.php?threadid=19822&highlight=nightmare+RackShack

and this

http://www.webhostingtalk.com/showthread.php?threadid=20272&highlight=nightmare+RackShack

and you will know why! you are same as *****

and you will know why! you are same as *****



Now that's not very nice. Maybe they got some stupid customer (not referring to anyone in particular) who was asking way too much for a $99/mo dedicated server (NOT managed). Maybe these are "I want a quad Xeon, with 24 hour dedicated phone numbers for me, unlimited bandwidth - and I want it for $99.00. If I don't get it, I will complain" guys. With over 800 (just a guess) dedicated servers, I am sure you are bound to have problems with one or two customers.

I think if you have mission critical or business critical needs and you are using a $99 server, then this is your problem. Rackshack can do their best to help, and in some cases they might screw up, such is human nature. But I really don't think they should be compared to *****. That is ridiculous. If you go to a nice dinner buffet and they offer plastic silverware and for $1 more, stainless steel silverware, and you choose plastic to save a buck and it breaks. Guess what? You are to blame. You took a calculated risk. More research would tell you plastic can break. Just like more research would tell you RAQs or cheap IDE servers will too.

I am sorry to hear about what happened. But spamming the board and posting to every Rackshack post is BS. And calling them *****? I understand your issue wasn't so much with the crash, but with support. But here is something to consider - paying more for a quality server will limit your need for support in the first place! I hope you get everything fixed. Good luck.

Here are some quotes from those four threads you refer to which to me sum up things.

Dear Robert, I had the chance to work with other hosting companies like HostPro.com, Rackspace, and Iserver.com( now known as verio.com). and they treated us the way we should be treated. they are doing business and we are too. we are not paying $99 per month to get a play server!

So have many mad customers and a dead raq at the moment The only reason I wouldnt bail out of rackshack along time ago is the price. I cant at this point afford a better provider.

First, let me say this -- I never trusted RackShack. After reading about so many problems in the past, I was really cautious. But this offer they have for 300 Gb for $99/month -- I couldn't pass. Well, it's a dedicated server, I said to myself, so it shouldn't require too much interference from RackShack guys, maybe a reboot or two once in a while.

PLEASE NOTE BEFORE READING THIS THAT THE ISSUE HAS BEEN SUCCESSFULLY RESOLVED

Originally posted by UmBillyCord


Now that's not very nice. Maybe they got some stupid customer (not referring to anyone in particular) who was asking way too much for a $99/mo dedicated server (NOT managed).

Definatly. I frequently visit the #rackshack chatroom. Don't go there if you have something against profanity :rolleyes:

Support peeps=deserve raise :(

The hell these people have to go through every day cannot be described. The customer is king, but some customers seem to think they are god.

Adelx, considering the fact that they claim to have over 2000 servers (RS figures), 4 "nightmares" is not too bad. Then take into account that one of the threads you posted was yours, and 2 of them had been resolved successfully, I'm not too sure what your point was.

Thats a 99.8% success rate! (sarcasm)

I know it sucks when your'e part of that .2%, and RackShack is far from perfect. But for $99/month, I can afford to keep a backup server elsewhere.

Mistakes happen everywhere.

I don't know if they happen more or less often at RackShack, but $99/month affords me the luxury of having a backup server on hand for those mistakes, and waiting patiently for those mistakes to be fixed (although my experience with their tech support has been very prompt, I've recieved re-boots within 15 minutes of my calls).

But that ***** comment was uncalled for. I've dealt with *****, and the two are nothing alike.

I know I know!

See rackshack makes you buy them a server $499.99 (setup which is almost close to building the server) and pay$99 a month for connectivity...... Some sites die in like 3 months and some other guy pays another $499.99 setup fee and wal lah profit and a free server for Rackshack and this guys cancel services and another guy pays $499 for it. :D Personally I don't think most of the servers can pull 300GB monthly :) (not talking about file storage sites and streaming media, just a plan popular site).

Originally posted by Synergy
I know I know!

See rackshack makes you buy them a server $499.99 (setup which is almost close to building the server) and pay$99 a month for connectivity...... Some sites die in like 3 months and some other guy pays another $499.99 setup fee and wal lah profit and a free server for Rackshack and this guys cancel services and another guy pays $499 for it. :D Personally I don't think most of the servers can pull 300GB monthly :) (not talking about file storage sites and streaming media, just a plan popular site).

I think you *somewhat* oversimplify the costs to RS for servers, setup and housing...

I don't think that someone can simply buy a $500. server, assuming that is what they pay, and then simply hook it to a network and charge $99. for that and be done with it.

Buildings cost money, electricty costs money, time spent setting up the system costs money, air conditioning costs money...

I'm not exactly sure what your point is on all this?

I paid the setup fees at RS, I usually stay where I am until either service becomes so bad that I leave or the business merges or whatever. I'll very likely be at RS long enough to amoritize the setup fee into my monthly costs and I'm saving tons per year on hosting fees...

Seems like it's a good deal for me, if it works for RS and we both make money... what's the gripe?

Shortness

Originally posted by headsurfer
Yes, we are profitable at the holding company level as well as the operating co level (Rackshack and Everyones Internet).

Robert Marsh
Head Surfer Rackshack.net


Just some notes for those that don't know about holding companies http://www.citizen.org/cmep/energy_enviro_nuclear/electricity/deregulation/articles.cfm?ID=4194

Interesting read about the multiplier affect that can happen within a holding company and it's sub's. Holding companies are a great tool for corporations ( hell the best one is Phillip Morris ). Congrat's on being profitable.

-Michael / Sqposter

Originally posted by shortfork


I think you *somewhat* oversimplify the costs to RS for servers, setup and housing...

I don't think that someone can simply buy a $500. server, assuming that is what they pay, and then simply hook it to a network and charge $99. for that and be done with it.

Buildings cost money, electricty costs money, time spent setting up the system costs money, air conditioning costs money...

I'm not exactly sure what your point is on all this?

I paid the setup fees at RS, I usually stay where I am until either service becomes so bad that I leave or the business merges or whatever. I'll very likely be at RS long enough to amoritize the setup fee into my monthly costs and I'm saving tons per year on hosting fees...

Seems like it's a good deal for me, if it works for RS and we both make money... what's the gripe?

Shortness

I see you don't have a sense of humor. That was just my thought at the buyers point of view. sheesh

Never used Rackshack, but heard they were ok to work with

damn dude u really dug this one out of the grave.

-brendan

Although I have never used RS servers, I can see how they make their money as they make it on quantity. I look at RS almost how I look at costco here in the US. They are a company who charges a membership fee (setup fee) for products (servers) at discounted prices. They are making their money on the quantity of servers that they sell, as I believe the number is over 6, 000. They also can afford to give the bandwidth for that price since they have excess BW from their dsl and dialup accounts. You do the math.

-Steven

LOL, Just reviewing mang ;)

Umm.. yeah, this thread is WAY old.