It's a copy Paste
Compaq Computer Corporation (NYSE: CPQ - news) today announced a three-year, $20 million agreement with RackShack, a subsidiary of Everyones Internet. Compaq will equip RackShack's IT data centers with industry-standard Compaq ProLiant servers for a tier one, Linux-based Web hosting solution. RackShack is the dedicated hosting services arm of Everyones Internet, a rapidly growing Internet and DSL service provider. The new RackShack solution will feature industry-standard Compaq ProLiant servers running the Linux operating system and Ensim Corporation's WEBppliance(TM), one of the industry's most robust and flexible software appliances for Web hosting. Yahoo have the news http://biz.yahoo.com/prnews/020403/daw001a_1.html

damn, thats alot of dollars $$$$



Jim

Yep, a lot of money for "cheap, low end, value, crap." :)

lol
Originally posted by web_res
Yep, a lot of money for "cheap, low end, value, crap." :)

10,000 systems for 20,000,000 is roughly $2,000 per server. I guess rackshack does buy all their servers for under $300 dollars :)

Well, so much for k-mart/wall-mart....

I think people will have to give up this

Rackshack uses all cheap hardware idea.

Compaqs make a good server.

Joe

Originally posted by JBIZ718
I think people will have to give up this

Rackshack uses all cheap hardware idea.

Compaqs make a good server.

Joe

I agree, and I think Rackshack is a good company....

Chris

ow my god.
that's just crazy. :eek:

10,000 systems for 20,000,000 is roughly $2,000 per server. I guess rackshack does buy all their servers for under $300 dollars

Looking at pricewatch and other shopper sites, I believe you can buy those Compaq servers retail lfor substantially less than $2000 per server (at least for the 1Ghz IDE models). Why would RS pay more than retail?

Originally posted by panopticon


Looking at pricewatch and other shopper sites, I believe you can buy those Compaq servers retail lfor substantially less than $2000 per server (at least for the 1Ghz IDE models). Why would RS pay more than retail?

Same thing listed when they purchased the cobalts, the amount of boxes, and the price stated ended up being over the retail value, or near retail, not discounted in any way. Is this just both of the boosting hype, and not reflecting the actual dollar figure paid (just the supposed value of what was recieved) or what? :eek:

I'm betting these aren't going to be offered for $99 though, so the low end kamrt/walmart comparison may not be warranted here.

I seriously doubt they are paying over retail pricing. Most likely a marketing strategy more than anything.

Originally posted by panopticon

Why would RS pay more than retail?


Possibly because they have too much money in investments, or it could be that they want to get in good business ties with compaq, or this may be a publicity stunt (personally I think this deal is more for publicity) and I also realize that EV1, Inc is probably looking at going public in the future, setting an IPO. The best way for a un-known company to go public is by getting some news generated and some headlines so their IPO will be successful.

Also, if they have compaq backing them, it would be much easier to acctually find investors.


Jim

Take a $2,000 server and depreciate it over the course of 2 years. Thats $83/month in server costs. Take that out of their monthly fees, and figure out how much money is left over to pay for quality bandwidth (note: cogent is losing $60+ per share per quarter) and a quality support staff. It doesn't take a lot of talent to sell a dollar for 50 cents.

-Brendan

Originally posted by HRBrendan
Take a $2,000 server and depreciate it over the course of 2 years. Thats $83/month in server costs. Take that out of their monthly fees, and figure out how much money is left over to pay for quality bandwidth (note: cogent is losing $60+ per share per quarter) and a quality support staff. It doesn't take a lot of talent to sell a dollar for 50 cents.

-Brendan

Ok, i totally lost you there. First off, were stating that we're in high doubt that rackshack paid that much for the servers they recieved, like the previous cobalt purchases, we're thinking the numbers are greatly exadgerated to the "list value" of what they purchased, not the actual values.

Second, i don't see how they're "selling a dollar for 50 cents", last time i checked, rackshack was making $$$, not loosing it.

And lastly, is that figure even accurate, and if so, whats it matter what cogents finances are? They're not rackshacks finances, so why even bring that in?

Because if cogent goes down rack shack is in trouble from a price standpoint. They're not going to get any tier 1 providers to give them bandwidth at cogent costs, regardless of how much they use.

Originally posted by Everyday
Because if cogent goes down rack shack is in trouble from a price standpoint. They're not going to get any tier 1 providers to give them bandwidth at cogent costs, regardless of how much they use.

Ok, i hate to be rude, but what choice do you leave? Thats the most ignorant statement i've ever heard. I mean i don't particularly like rackshack, im the competition, i don't hate em, but i don't love them either, but have you looked at rackshacks network map in your life?

Lets see, cogent dependant eh?:

1000mbit from time warner
1000mbit from verio
1000mbit from cogent
155mbit from savvis
45mbit from ELI

How is that dependant on cogent, considering according to their map, none of the 1000mbit links have even gone past 400mbits, if cogent drops, whats gonna happen? not much.

Also unlike when other tier 1 providers go under and their customers get bought out at their current contracts, I cant really see that happening with cogent... but they don't use only cogent so that may not be an issue as much for them as for others. I dont think rackshack's financials are pulicly published them being a private company and all right? If so I may have just missed them... but the dollar for 50 cents thing is just a figure of speech.

-Brendan

Anyone have any idea what the price difference is between those 3 1000mbit eth linkups is? Im curious.

-Brendan

Probably a lot i'd imagine, but im sure they've given rackshack a very competitive price, i mean any of those companies are probably over-eager to unload that kind of connectivity :), but i doubt it's made public anywhere, heck im certain most of it requires a non-disclosure agreement to be signed.

if you really wanna know how much it costs, call up the companies and have them price it out for you. Pretend your a potential customer (some of you guys might be ;) )

You should get a ball-park figure.


Jim

Originally posted by porcupine

How is that dependant on cogent, considering according to their map, none of the 1000mbit links have even gone past 400mbits, if cogent drops, whats gonna happen? not much.

It could also mean that they "Can't" go past 400mbits ??

I'd venture a guess and say that they are buying less then the full Gig. Kinda like a DS-3 Line, if it's a partial...you can only go so fast, but you can honestly say you have 45mbits MAX (assuming you pay more).

I have a lot of respect for Rackshack, they must be doing something right!

Just my 2 cents!

Cogent has it right on their site at 30k/mo.... I believe thats abomut what the others would charge for a 155mbit line.

-Brendan

Cogents webpage has all the propoganda you'd expect from any other carrier on their website also though. Don't believe everything you read, they're a great deal, but if you sift through any carriers website (one that has real details) you'll start to smell some bulls*** after awhile, almost regardless of who it is. They also claim the average ISP has 200ms ping.... :eek:

Originally posted by porcupine
Cogents webpage has all the propoganda you'd expect from any other carrier on their website also though. Don't believe everything you read, they're a great deal, but if you sift through any carriers website (one that has real details) you'll start to smell some bulls*** after awhile, almost regardless of who it is. They also claim the average ISP has 200ms ping.... :eek:

but remember, with any big company, your always gonna get pumped full of bulls#it. especially when alot of these telecom companies are loosing so much money, they will do and say anything to get a sale.


Jim

Mentioning the pricing that RS is charging for the Compaq machines, they're charging (right now) $99 setup and $129 a month (the setup was higher not long ago).

Also, mentioning RS profits, HS has said in the past that they are definately making money.

Regardless of cogent going bust or not, i am sure they are paying sub-100 per meg with both verio and time warner. You can get verio bw at $100 per meg for 100Megs right now.

If I remember correctly Headsurfer said himself that some providers were getting near the cogent pricing....as for what near is, thats anyones guess. I do know you can get On-Net 1Gig connections for 75k from a few providers.....and this has probably dropped in price

I also don't think they paid $2,000 per server. For this much you can get a _dual_ P3 1GHz with 1Gb ECC registered RAM and 80 Gb IDE RAID 7200 RPM easily even before you apply volume discount. Only high end components, including server grade motherboard and power supply.

Excellent points fatale but it seems that a compaq dl320 with similar stats as the ones rackshack have cost about $2k. They are probably getting volume discounts.

I am sure that if you build a system yourself you'd be able to get better prices but it seems that rackshack does like paying a premium for brand names (cobalts). I'm sure they like purchasing low cost boxes like the celerons as well :).

Also headsurfer mentioned something about getting another gig-e sometime in the near future.

That would be a total of four gig-e lines.

Excellent points fatale but it seems that a compaq dl320 with similar stats as the ones rackshack have cost about $2k. They are probably getting volume discounts.

I think you're looking at the model with SCSI, not the IDE DL320 which is much less than that.

http://www.pricewatch.com/ and even http://shopper.cnet.com/ have a few listed retail (you have to add the IDE HD and more RAM).

I am thinking of when you go directly to compaqs site and add 512 mb of ram on the ide hd systems. Without discounts that's how much they would charge, around $2k.

I smell an ENRON SCANDAL AHHHH lol :rolleyes:

Well as a hosting customer I guess it doesn't really matter. Headsurfer is no dummy businesswise, so if he is really paying a third more for each box in volume than I can pick them up for in a store, that's his business and I'm sure he must be getting something pretty nice in return.

More likely it is just hype as was said earlier in the thread... That's ok I guess... it really comes down to the service they offer and the equipment they have. I'm not complaining that they're offering a $1000-$1400 box... I think that's pretty good for $99 a month. Doesn't bother me if they are or are not really paying $2000 for that... I'm pretty sure they know what they're doing financially :D

Originally posted by HRBrendan
Take a $2,000 server and depreciate it over the course of 2 years. Thats $83/month in server costs. Take that out of their monthly fees, and figure out how much money is left over to pay for quality bandwidth (note: cogent is losing $60+ per share per quarter) and a quality support staff. It doesn't take a lot of talent to sell a dollar for 50 cents.

-Brendan Do you know that RackShack/EV1 makes 3 million a month? I'm pretty sure that they would be able to survive even if CongentCo went down. Also RackShack is growing everyday, and now their going for 6,000 servers. Do you know how much revenue this will generate?
As porcupine stated RackShack has other providers besides Cogent.

I advise you to read-up on RackShack, to obtain more knowledge about the subject, before making statements about them.