Web Hosting Talk







View Full Version : A 'Ultimate' System


NE-Adam
11-13-2004, 06:23 PM
Ok, firstly I will explain what I mean by a 'Ultimate' system. What I and a few others have been thinking about recently is how 'unorganised' the hosting industry is. Unorganised meaning there is no sort of protection or services set out for a customer who would like to do something like, lets say change hosting company or a company that monitors standards of hosting companies, for example in the UK the Telecom industry has Ofcom.

So I along with a few others came up with the idea of a company that helps both hosting companies and customers of hosting companies. It would ultimatly be in place to protect the customer and the webhost while also offering other 'useful' services.

One of the 'useful' services the project would like to offer is for an easier way for customers to transfer/move between hosts. The feature would hopefully provide a method for hosts to transfer cutomer data between each other and the ability for the customers files/prefences to be automatically moved between hosts with ease. This would make it easier and faster for a user to move between companies as users would no longer need to transfer there own files and the transfer process would make moving much easier. It would also benefit hosting companies by being able to offer a user the ability to transfer to them with ease. It could also reduce fraudulent orders as a verification process would be implemented for users to verify transfer requests and new orders. Obviously privacy is a big thing involved in this, which is why data would only be transfered once a user has verified their transfer request. We will go into more depth on this features as and when we come to it.

Another useful feature that we would like to offer is a 3rd party processor designed specifically for the hosting industry, it would use a 'credit' based system, which could help reduce fraud by allowing users to use credits to buy hosting rarther than actual cash. This of course does not mean the hosting company would recieve the cash. An example: Lets say 1 credit = $1 (this may not be accurate), a customer buys a hosting plan that costs 12 credits a month, each month the customer pays the hosting company 12 credits, then the host may withdraw the credits to their bank account, at this point the credits will be converted into their cash value, in this case $12. A user and host could withdraw and add funds at any time.

Other main features would include a verification system the host could use to verify a non-fraudulent user. The host would be able to select between email, phone, sms, even mail. This would dramatically reduce fraudulant orders. Another main feature would include dispute management in which we would help resolve disputes that cutomers and hosts are having.

There are many other features we are also planning and talking about but the features mentioned above would be 'key' features that we will include. We believe by introducing this it could radically improve the hosting industry and create a simpler easier to use system for users and hosts.

Naturally such a system would not work without the participation of web hosts and server providors etc. We would need as many companies as possible to participate with us to build a better hosting world.

Anybody interested or any hosting companies that would like to participate or just disscus the effect of this on their company, please either PM me on these forums or email me on ultimatehostsys@gmail.com.

Note: The company that would manage this would be a non-profit company. Any funds donated to or collected by the comapany would only be to cover nessacary costs.

will7
11-13-2004, 07:14 PM
That system sounds good! However, did you think of the costs to implement it?

First, you're gonna need a team - and a large one. You'll need advanced programmers, producers, marketing management, technicians, designers etc. They will cost a LOT to pay.

Second, is this gonna be like a boxed program that people can go out and buy? If so, then you gotta think about publishing costs and going to a reputable publishing company for distribution.

Third, marketing. You're gonna have to spend a lot on this (and have a large marketing team) to promote your system successfully.

There will also probably be other costs that aren't taken into account here.

So basically, it's a really good idea, and would probably be popular, but it will cost LOADS to make. I may be wrong, most probably am, heck, I'm only 14, what do I know?

NE-Adam
11-13-2004, 07:33 PM
First, you're gonna need a team - and a large one. You'll need advanced programmers, producers, marketing management, technicians, designers etc. They will cost a LOT to pay.

I agree, it will cost alot to implement but we believe it will change the hosting world hugely for the best. So we believe it is worth it. We are still looking into methods of funding and have contacted a few large hosting companys and they seam interested in supporting the system financially.

Second, is this gonna be like a boxed program that people can go out and buy? If so, then you gotta think about publishing costs and going to a reputable publishing company for distribution.

No, this will not be a boxed program, it will be a web based company that hosts sign up to. Think of it as a central management system where most/all hosts are involved and can use the features of our system. Although we do plan to have an API for software developers to intregrate with our system.

Third, marketing. You're gonna have to spend a lot on this (and have a large marketing team) to promote your system successfully.

I agree such a system needs to be known to be used. One of the methods we are currently discussing are having icons/images for members of our system, so people can tell which is a member of our company and can use the features we offer. This hopefully would motivate hosts to sign up.

will7
11-14-2004, 05:15 AM
You've obviously thought it out. You are correct, I'd imagine your main source of funding would come from other hosting companies. It's not a boxed product, so that cuts down on cuts pretty majorly.

The marketing is really important, use business cards, get high search engine rankings, flyers, if you could afford it radio or maybe even televison would be even better and you'd get millions of signups from them, but I don't know if you want to get that many customers.

NE-Adam
11-14-2004, 12:04 PM
Well obviouisly we would want as many hosting companies as possible to sign up as a system like this would not work if only a few hosts used it. As users would only be able to transfer and use other features of our system if the host they were using was a member of our system.

sightz
11-14-2004, 12:27 PM
Originally posted by adam-pca
[B]One of the 'useful' services the project would like to offer is for an easier way for customers to transfer/move between hosts.


As a host, why would I want to make it easier for people to transfer their business away?!?


Another useful feature that we would like to offer is a 3rd party processor designed specifically for the hosting industry, it would use a 'credit' based system

If you have ever read the Paysystems agreements, that is exactly what they were doing. They were only selling 'credits' which were then (automatically) exchanged with their merchants for goods and services. It was a shady way to get around Visa/Mastercard?Amex's third-party processing rules, and we all know how that worked out.



Other main features would include a verification system the host could use to verify a non-fraudulent user. The host would be able to select between email, phone, sms, even mail. This would dramatically reduce fraudulant orders.

They should be doing this already.


I don't understand what your proposal gives us, that a properly managed hosting business doesn't already.

NE-Adam
11-14-2004, 12:42 PM
It would also allow people to transfer to your company, not just transfer away from your company.

It would also offer user protection and host protection so if a user is de-frauded our company would step in and take action againt the company that de-frauded the user. This would also apply to hosts.

We would also maintain cirtain standards to reduce the ammount of fraud. Also it would help reduce the ammount of smaller hosts selling at 'destroyer' prices trying to destroy other companies.

Overall the system would make it better for users and hosts by offering new services and protection for both.

Amish_Geek
11-15-2004, 12:54 PM
What will force or require hosts to join your "System"? What about customers who are with hosts not in the "system"?

NE-Adam
11-25-2004, 09:34 AM
Customers with hosts that are not in the "system" would be unable to use our features. We cannot force anyone to join our system it would be completly optional.

Matt Lightner
11-25-2004, 10:05 AM
Originally posted by adam-pca
Customers with hosts that are not in the "system" would be unable to use our features. We cannot force anyone to join our system it would be completly optional. One very large barrier to implementation of this system would be convincing hosts to join even though it increases customer mobility.

Think about it for a second...

The whole concept of making it easier for customers to transfer between hosts is a net gain of zero for the industry as a whole. And if you think about it, it's actually a net loss for the people in the program. It may be advantageous for the few hosts that are currently "in the spotlight", but that doesn't help the thousands that are struggling to retain customers.

A "good host" (defined as one that customers would want to transfer their site to) would have an inscentive to join the program, as it would make it easier for them to acquire customers from "bad hosts" (hosts that customers want to transfer away from). However if you are the owner of a bad host, do you really want to join a coalition that makes it easier for customers to move their site to one of your competitors? Of course not. It's likely that the only thing keeping many of your customers with you is the fact that it is a big hassle to transfer their site elsewhere. So "bad hosts" won't join the system in order to protect their business.

So what you would end up with, in theory, is a bunch of quality hosts competing against eachother within the system. However since it will be painfully easy for customers to move around between these "good hosts", they will be in much fiercer competition than before, and may find their profit margins being eaten away to the point that it endangers their business. So really, there isn't even an incentive for a "good host" to join the program.

This is why an opt-in system that eases customer mobility would very likely fail: nobody would join for fear that a bigger and better host would come along and sweep away the majority of their customer base with very little effort. The value of a single customer remains the same across the industry, however once inside the system, the value of that customer goes down because they are so mobile. So in essence, hosts will be paying the standard rate for acquiring a new customer from outside the system (say it's $100), and then once the customer actually signs up, they're only worth $65 because the probability that they will move away sooner is higher--regardless of whether or not the host provides satisfactory services. One cannot ignore that part of the value of a customer is derived from the fact that once acquired, it requires a considerable amount of effort for them to relocate. Now most quality hosts rely on other factors such as reliable service and quality support to retain their customers, however relocation difficulty is still there.

In order for a system of this nature to work, it needs to be implemented industry-wide. The chance of that happening is about as close to zero as you can get.

My $0.02.