Quote:
Originally Posted by Brad Mitchell
Actually Sin this is fundamentally where you and everyone else, including most hosts even, are out of the know.
Brad
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Brad,
This is Henry from Swift BTW, I dont want you to feel that Im trying to take advantage of you anonymously.
I appreciate what you're trying to do BTW, but we are not a cartel like the phone company is. I'm not trying to de-rail your thread, but if we are gonna swarm AR like vultures lets at least call it like it is. Its a feeding frenzy and everyone wants some of it. Lets at least give them the credit they were due for building such a massive book of business. They didn't fail b/c their business wasn't sound. they failed b/c he was selling scareware! Everyone knows not to fuck with with Microsoft, so why did he do it?
Lets suppose Alpha made $1/mbit which I'm absolutely sure they did. They were pushing 200+ gigs / second.
That gives them 200k / mo MINIMUM to play with. (NET EARNING)
now let me suppose I had their bandwidth biz.
I have 45,000 Square feet of US based office and datacenter. Even if selling bandwidth was the ONLY thing I did, and I didnt sell small dedicated servers, colocation, and consulting services. I would only be slightly in the hole each month.
I DO sell other things b/s high bandwidth servers however (just as alpha red does, and indeed EVERY other host here does)
the bandwidth I give away free (which I currently do) to my colocation clients for instance (Colocation is a term for someone who just buys rack space in your datacenter, and puts their own servers there, and manages it themselves), allows me to acquire thousands of cabinets all paying me a minimum of 800-1000 dollars per cab.
and ofcourse the 1000's of little dedicated servers that use zero bandwidth really, and net you 100/mo.
I also sell PREMIUM network services. I have a bad ass full mesh network consisting THE BEST providers on the planet
click here if you dont believe me. I make good money from that as well. Leveraging that kind of buying power would lower the costs on my premium network dramatically I'm sure.
If I had their bandwidth business, at the end of the day I'd be making coin off of alphared's business. Its called
Economies of scale
If my biz would make money, then I'm sure AR's biz would be too.
You have your servers at Equinix. Alpha Red has/had/whatever their own datacenters I believe yes? Most of the truly large hosts do. Basically their colo costs are a 10th of your own. You have to be able to put up Millions up front, but essentially once you can, your colo isnt that bad.
This is where fundementally I AM in the know.
If any of the hosts here want off this roller coaster (cheap OR premium hosts), I would love to chat with you about acquiring your business. ICQ in the sig. or contact henry at swiftco