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Thread: Comments on EGI Hosting
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11-06-2003, 04:00 PM #1Junior Guru Wannabe
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Comments on EGI Hosting
did a search and nothing came up.
anyone with them or have any comments about them?
-robert
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11-10-2003, 11:38 PM #2Junior Guru Wannabe
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RE : EGI Hosting - Matador's Thoughts
Hi,
I am currently with EGI for co-location. I am currently co-locating 1 server at HE in Fremont, CA.
It is working great. Best of all, great service from them on MSN
They really have not much to do with me, since they just connect the port.
You have to understand that co-lo in HE is *un*managed. Other than remote reboots, they really can't do much for you, for free.
If your server goes down, you better have another one co-lo'd.
They can send a tech to look at your box, and check if a power supply went, HD, etc... at a reasonable fee.
I am in Toronto, Canada. Canadian bandwidth is wayyy over priced, esp. compared to HE.
The saving I have with HE(through EGI) is more than enough to warrant 1 tech visit a month. Mind you, haven't had the need for a tech yet.
Anyway, that's enough for one comment.
Cheers,
--Matador
MatadorsPlace.com
[ cheap web hosting ]
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11-11-2003, 11:55 AM #3Junior Guru Wannabe
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matador, thanks for the review.. i've spoken wiht them over AIM once and the person I spoke with was very helpful. he mentioned that currently at peak time, their GigE line is only at 30% capacity and provided me with a link to HE's MRTG graph as proof.
i'd switch over to them in a heartbeat, but i need a 1U server and currently i have a mid-tower =(
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11-11-2003, 05:54 PM #4Web Hosting Evangelist
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Originally posted by blobby
matador, thanks for the review.. i've spoken wiht them over AIM once and the person I spoke with was very helpful. he mentioned that currently at peak time, their GigE line is only at 30% capacity and provided me with a link to HE's MRTG graph as proof.
i'd switch over to them in a heartbeat, but i need a 1U server and currently i have a mid-tower =(
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11-12-2003, 02:02 AM #5Junior Guru Wannabe
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i'm sorry, i should have specified that. they accept mid-towers but i'd rather go ahead and buy a 1u box to colo there and save the $75 - $100/month i'd be spending to colo the mid-tower =)
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11-14-2003, 01:22 PM #6Web Hosting Evangelist
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Hi,
We just got a full rack with EGIHosting at HE.net in Fremont, CA. We previously had three smaller contracts for HE.net directly and are now using a full rack.
So far they have proven to be OK. A few problems getting things coordinated, but they are working out. Typical of most resellers (I also co-locate with Pajo, Deru, Pwebtech / Pegasus, AffordableColo).
As an aside: HE.net Fremont is looking pretty full! The 11th row of racks is already full with 12th going in! Anyone know the inside details on if they plan a second building here ?
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11-14-2003, 01:32 PM #7Web Hosting Guru
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I just colo'ed a server with EGIHosting and this is my first time using He.Net. So far very happy with both. - Jay
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11-14-2003, 04:39 PM #8Web Hosting Master
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If I'm not wrong, HE.net brought the XO building next to theirs.
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11-14-2003, 07:54 PM #9Web Hosting Master
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Hmm, seems like He.net is doing pretty well while others are in trouble. They are even cheaper than Cogent.
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11-14-2003, 08:36 PM #10Web Hosting Master
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We've got a machine with EGI. Etinniene (sp) is nice and helpful. Had a small blib yesterday but that was quickly fixed
RusRuss Foster - Industry Curmudgeon
Freelance Sysadmin for Hire - email vaserv@gmail.com
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11-20-2003, 01:48 AM #11Web Hosting Evangelist
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BTW: We went with EGIHosting where previously we had two smaller contracts with HE.net directly. We have had servers at HE.net for over 16 months.
I've had a few troubles reaching EGI in our first week, but overall thigns have gone well. We have access to our rack just like going with HE.net directly, etc.Last edited by StephenRS; 11-20-2003 at 04:36 AM.
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11-20-2003, 02:11 AM #12Web Hosting Master
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You had problems reaching him cause his reseller started posting deals before even EGI was ready.
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11-20-2003, 04:38 AM #13Web Hosting Evangelist
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I'm not sure I understand your comment? "His reseller"? EGIHosting or a reseller below EGIHosting?
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11-20-2003, 04:43 AM #14Web Hosting Master
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AFAIK (and we got cuaght by this to) that EGI has someone reselling for them + hardware and they were doing some crazy deals. EGI however handeled the situation brilliantly
RusRuss Foster - Industry Curmudgeon
Freelance Sysadmin for Hire - email vaserv@gmail.com
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11-20-2003, 02:00 PM #15Disabled
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Right, so let me get this straight...
From reading this thread:
1.
EGI (i.e. Hurricane Electric) is selling bandwidth at like $20 per Mbps or something while their competitors sell between $60-$500 per meg.
2.
They are expanding like crazy and doing even crazier deals.
3.
Service is great.
4.
Everyone on this thread is promoting Hurricane and EGI (nice)
If I was an investor I'd want to know how they are making money.
If I was a prospect I'd want to know what their plans are to keep these price points and the quality of service they claim to have because I would NOT want to move my stuff again or go through one of those "it was great at first but then it got bad" deals.
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11-20-2003, 03:32 PM #16Web Hosting Master
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I can tell you how HE is making money. EGI signed up for a 1Gbit commit but is only using 1/4 of it.
EGI has apparently covered all their bils from streaming companies who are eating up most of that 250Mbit, so they're probably at break-even on the 1Gbit commit. They're selling colo at ridiculously low rates, but they still make $5/Mbit, so that seems good to them as they have another 750Mbit to go before they fill up the GigE line.
It's amazing what you can find out by talking to people in the industry.
-Erica
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11-20-2003, 03:48 PM #17Web Hosting Evangelist
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I did want to point out as was mentioned in some older threads about HE.net...
They do get hit with DoS attacks rather frequently. We monitor them every 1/2 second from remote location and have been there over 16 months...
Last 4 months they have been a lot quicker about catching them.... typically it gets cleared up within 30 seconds or a couple minutes. However, it was not so good 6 months back (often took 1+ hour to resolve). Typically this happens every two weeks or so.
I also don't like the ARP pollution they have on their switch network. I've complained about it since we started there and they don't seem to want to do much about it. I've even gone into the Noc and showed them the mess via my firewall using SSH! They have some multicast customers (direct + clustering)... and it is not uncommon for our firewall to see traffic for other customers! We use a very sophisticated firewall (OpenBSD 3.4 pf in transparent bridge) and have 3 diferent firewalls at HE.net in different rows and all see it.
We have even had a Toshiba SG20 switch / firewall fail due to the ARP pollution. We replaced it with a brand new one and it locks up within 4 hours of being on HE.net - works perfect elsewhere.
They aren't perfect, but a bargain. I suspect they are making a profit, they are not new to the business. Site visits are a pleasure, nice staff - just don't sit too long on the step ladder
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11-20-2003, 04:22 PM #18Disabled
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Originally posted by Simpli-Erica
I can tell you how HE is making money. EGI signed up for a 1Gbit commit but is only using 1/4 of it.
EGI has apparently covered all their bils from streaming companies who are eating up most of that 250Mbit, so they're probably at break-even on the 1Gbit commit. They're selling colo at ridiculously low rates, but they still make $5/Mbit, so that seems good to them as they have another 750Mbit to go before they fill up the GigE line.
It's amazing what you can find out by talking to people in the industry.
-Erica
Ok, so you mean to tell me they have the potential to make $3,750 on the remaining 750 Megs based on a $5 per meg margin?
So for a full GigE circuit they will only see $3,750.
Now take that number and consider:
-hardware maintenance
-performance issues
-another GigE circuit for expansion/failover
-another GigE circuit for failover/expansion
-hardware upgrades as additional switchports get used up
-ARP storms increasing by 10 fold
-etc, etc,..
EGI will quickly see that they need to charge far more or change their entire model if they want to stay in business and avoid performance issues.
Bottom line: (unless there is something I don't know)
At those prices other business expenses are not covered. Therefore customers will suffer from increased performance problems, which, in the end, will kill the business.
All this means is that they have not really considered what it costs to run the business and the customers will suffer for it.Last edited by Papa Smurff; 11-20-2003 at 04:30 PM.
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11-20-2003, 04:48 PM #19Junior Guru
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I see a lot of assumptions in this thread and very few facts.
"All this means is that they have not really considered what it costs to run the business and the customers will suffer for it."
That's a pretty bold statement given how little we really know about EGI and their business model.
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11-20-2003, 04:53 PM #20Disabled
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Originally posted by Potsie
I see a lot of assumptions in this thread and very few facts.
"All this means is that they have not really considered what it costs to run the business and the customers will suffer for it."
That's a pretty bold statement given how little we really know about EGI and their business model.
"Bottom line: (unless there is something I don't know)"
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11-20-2003, 05:26 PM #21Web Hosting Master
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URL for EGIHosting would really be usefull in this thread...
1. Mmmmm food...
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11-20-2003, 06:56 PM #22Web Hosting Master
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Originally posted by Papa Smurff
EGI will quickly see that they need to charge far more or change their entire model if they want to stay in business and avoid performance issues.
Bottom line: (unless there is something I don't know)
At those prices other business expenses are not covered. Therefore customers will suffer from increased performance problems, which, in the end, will kill the business.
All this means is that they have not really considered what it costs to run the business and the customers will suffer for it.
Perhaps raising their rates will allow them to take something else besides Paypal as a payment method, as well. I'd have trouble trusting thousands of dollars worth of server equipment to a company I could only pay through Paypal... but there are enough people on this board who go for the cheapest price over anything else (including the fact that their domain name has only been registered for two months) that EGI should do fine.
-Erica
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11-20-2003, 09:12 PM #23Disabled
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Originally posted by Simpli-Erica
Given what I know, this would seem to be the case. Notice that I said "...that seems good to them" in my original post... I wouldn't consider it a good margin, but then again, I think they just want to get people in there. Perhaps they'll raise their rates after a while?
Perhaps raising their rates will allow them to take something else besides Paypal as a payment method, as well. I'd have trouble trusting thousands of dollars worth of server equipment to a company I could only pay through Paypal... but there are enough people on this board who go for the cheapest price over anything else (including the fact that their domain name has only been registered for two months) that EGI should do fine.
-Erica
If that's true then I sure as heck-fire wouldn't be crazy enough to go with a company (or should I say "hobby") like that unless I was
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11-20-2003, 10:19 PM #24Junior Guru Wannabe
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$20,000/mth Gig-E "hobby", yeh that assumtion sounds reasonable.
I've spoken with EGI and they seem like great guys. Their target market is low-cost streaming media, and they seem to have decent saturation. I wish them the best of luck.
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11-20-2003, 10:42 PM #25Disabled
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Originally posted by abnormis
$20,000/mth Gig-E "hobby", yeh that assumtion sounds reasonable.
I've spoken with EGI and they seem like great guys. Their target market is low-cost streaming media, and they seem to have decent saturation. I wish them the best of luck.
Let's do the numbers again just for my amusement because I find this all very entertaining... as well as educational...
20,000 per month for GigE circuit
23,750 per month billed to customers
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+3,750 positive cash (but not really, keep looking down)
______________
- 20,000 per month for failover/expansion GigE circuit
- 2,000 per month in lost business due to performance issues (10% off the total)
- 1,000 per month in hardware upgrade/maintenance fees
- 1,000 per month misc biz expenses to maintain traffic
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Total: -$20,250.00 (negative cash flow)
Of course I'm making assumptions to some degree but the principle is still the same. Other expenses need to be covered and at the end of the day I bet they are losing $$ big time.
Sounds like someone with a little bit of cash to burn experimenting on a hobby idea.
If you considered what it really takes you know it costs more than $20 per meg in order to provide quality service of any kind.
Hey, if you want to jump in bed with EGI and get some while the getting is good, then more power to you. But if you run a serious business you need to be selective as to who you rely on for service. Remember, your business is worth more than just trying to save a few bucks a month.
I'm not saying EGI is not good but I am saying that you should do your homework before making a move that your biz depends on