Web Hosting Talk : Web Hosting Main Forums : Colocation and Data Centers : Colo Provider Perspective: Risks of providing dedicated servers?

[Sekweta]

Our biz model includes colo, but only for those sending us their own equipment. We've felt that when someone sends us their own box, they are less likely to be a spammer/hacker/miscreant using us as a throw-away service, and are less likely to be using a stolen credit card. The relationship seems more tangible when they provide their own equipment.

I know of at least one provider locally who is in the ultra-cheap (under-$100) dedicated server market, who's had a lot of problems with spammers, IRC, DDoS, etc. who abuse the account until they're caught, then move on. A spammer doesn't really care if his $69 server is shut off for abuse, because he's already blown out 100-million emails in the last 3 days, leaving the owner of that IP block to clean up the storm of abuse complaints, SPEWS/RBL problems, etc.

Gernally speaking, do those of you who provide dedicated servers (as opposed to "send us your server" colocation only) find network abuse, illegal content, and/or stolen credit cards, to be a significant problem?

[dkitchen]

The main problem you're up against is when you just spent £1k on a server, and the customer walks after a month leaving you paying for equipment with no income.

Abuse is a problem, but if you make your policies clear and let your customers know they will be fined under the terms of your contract, you're pretty safe.

Dan

[MSV_AR]

How exactly will you push the fine through when the original payment method is not rebillable either because by the method itself, or because the card is stolen/chargebacked upon?

[Glexia]

Well, if you have fraud measures in place, they should have been using a valid name/credit card etc... What you do then is refer them to a collection agency and hope for the best.

[Chainhost-Giles]

We offer colo and dedicateds but what Glexia said rings true. For our colo there is a contract, and we know almost everything on the end user. This reduces the risk of getting burned. It also provides legal weapons to go after the end user should they try to stiff us. Ohh and collection agency talk has become the norm. As most people would prefer not to have bad data on their CR/D&B reports.

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