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Archive for April, 2009

dennis-johnson-sw-whtDo you want to know more about the attack against Web Hosting Talk? Or to meet some or those who made WHT the world’s leading IT hosting community? I think you would say “Yes”. So let me start the introduction to this interview like this.

“There are people who have significant influence in the fields of activity, they are engaged in - business, journalism politics, academic life, science, etc. Some of them are usually controversial figures, other are not. But most people who are involved in any form of community activities (including journalists, politicians, PR specialists) are often leaders and strong personalities who can lead others. The person you will meet below is definitely someone who has a strong character. He is Dennis Johnson (SoftWareRevue), the Community leader of Web Hosting Talk.”

I barely know Dennis… mostly from the short e-mail correspondence I had with him. However the above words are not a cheap compliment, they are result of my sense of him. Could it be wrong? Just read the interview and you’ll find out.

Hi Dennis, Good to meet you! I have spent some time searching about you on the web, and to prepare myself for this interview, but didn’t find too many articles, interviews, authoring works, or any other things that would help me. So I believe in this interview you should say some things about yourself, that you haven’t revealed before. If you ask me “Why?”, my answer is “because I believe you have many things to say”. So let’s start with this question.

I like the way your authoring style, I know from WHT newsletter. Do you know that you are good in telling stories? I mean very good. I have read you are graduated in “Electrical Technology”. Do you like reading? I’m curious what did help you to shape your writing?

I’ve always enjoyed reading - and writing. But had never considered they would be a major part of my job at any age. I have poems, short stories, songs, half-written novels and instruction manuals I’ve written scattered about in boxes, bags and drawers.

I had an insatiable appetite for literature as a child. We didn’t have the technology of today of course, so reading was my means of exploration. I loved reading anything. One day it may be Tom Swift in the Race to the Moon, Principles of Refrigeration the next, and then Principles in Psychology followed by Black Beauty. But I’d say what influenced my writing the most is my passion. I’ve always been a very emotional person. And I think that comes out in my writing.

I hope it is appropriate to ask you do you see yourself as a journalist?

No. I don’t see myself as a journalist. Journalistic prose can be a chore for me. I’m much more comfortable sitting around a campfire and sharing stories than I am addressing a room full of peers that are interested in what I have to say. I suppose you could classify me as a journalist based on my WHT Insider alone. But I don’t consider myself one.

I have asked you “Do you know that you are good in telling stories?” because being a Community Coordinator at WHT and having responsibilities to keep the forums clean and to enforce policies and rules makes you some kind of “Community Guard”, which is very much a Police job :). Do you feel like this sometimes?

When my 82 year old mother asks me what I do, I tell her I’m like the mayor of a city. And as mayor, I have to wear the Police Chief hat. Of course, around these parts, we call them Peace Officers. Sure, moderating forums requires enforcing the policies everyone’s agreed to. It’s something that needs doing. Just like moving and editing posts, answering member questions, encouraging discussion and maintaining the health of a community are all parts of forum moderation.

I have seen that you said in Iamdum.com that you “would love to have time to just surf and post”. And then you added “But, my hours are spent chasing spammers and scammers. And then there’s the bit about managing staff”. Let me ask you something. If you have to categorize members who violate WHT’s Rules, how many categories we will have? We obviously have “Spammers”, “Scammers” and then…

There’s lots of groups that make up a forum community. And some of them think our rules are unfair, because they’re not what they want. Spammers and Scammers can be found in any community. But, given WHT’s nature, we have some unique groups that can be problematic. Some members become so passionate about their community that they’re Overly Protective. That is, they can be seen as rude or disruptive because they want to prevent any harm. Before I delve into this too much, I think I’d like to hold off because I plan on writing a more descriptive measure on the topic. So let’s just say that “there are as many different types of members in a community as a forum needs”.

You said the above things in 2005 and added “I had thought that a larger staff would afford me the opportunity to have time to post as a member. But, lately, I’ve been finding that a larger staff is forcing me to manage a larger staff. Any time that is saved by having someone else respond to a reported post is off-set by time it takes to answer staff questions and concerns”. So how are the things 4 years later. Do you have time to browse and to talk to other members of WHT as well as to write more staff?

No. But my position has evolved. The current staff of WHT is great. It could be a little bigger, but they do an outstanding job of keeping the community in good health. I don’t do much of the day-to-day moderating. But I do more work off forum that I’m still not as engaged as I’d like to be.

How many hours per day do you spend working on WHT?

I’m down to about 4-10 hours a day. It really depends on how much time I need to spend on other iNET communities.

In a Hosting Tech interview you gave 5 years ago you said that you have retired but very soon you get bored and got down to new business. You have also “promised” to prepare ”well written retirement plan next time”. I don’t know much about you, but from what I see and read about yourself, you don’t look like someone that would ever retire. Have you ever thought what would you do if we haven’t Internet?

I haven’t considered life without internet. I plan on being involved in some sort of Community Manager roll for a long time yet. You’re right - I’ll probably never retire. I still enjoy learning, and that doesn’t show any signs of slowing down. However, if we didn’t have internet, I’d be involved in some type of customer satisfaction roll.

Five years ago you said that “The admin side of WHT is a monster. A beast with an insatiable appetite. And a lot more work than members imagine”. Can you reveal more about the team behind WebHostingTalk? How many moderators manage the forums, how the WHt is organized and how does the todays Forum looks like compared to the WHT in 2004?

We have 30 staff members. We recruit members that have demonstrated a thorough understanding of forum guidelines, have shown to be non-confrontational and are active. Not everyone who meets this criteria is recruited, and not everyone recruited accepts. WHT is a unique community due to the fact that many members are growing their business through it. As such, we have a higher ratio of the spammers and scammers you mentioned above than other help based communities. It takes a strong individual to moderate the forum and not take the personal accusations personally. It’s simply the nature of the beast that moderated members are offended they’ve been moderated.

Why WHT never turned to a media? I mean traditional online media, the way TheWHIR is in web hosting industry? Haven’t you guys been tempted to broaden the frontiers of the WHT?

We have some new stuff planned for WHT. That’s about all I’m going to say about that. But I will say that it won’t be traditional online media. iNET Interactive has current and projected projects in that arena though. Stay tuned!

Tell me something about the consequences of the attack on WHT. I’ve seen on your recent newsletter that someone told you: “Because of your email, I’m going to take a serious look at our own disaster recovery plan because we seldom do off network backups. I think this would be a good topic on WHT in the future so that other web hosting providers could learn from others.”. So it sounds really weird, but it is obviously the attack has taught a lesson. There is something to be learned for many businesses our there… because I’m sure many of them haven’t build their own recovery plans…?

You mentioned my favorite thing about this attack. It’s a shame that it happened. But it’s made so many others examine their infrastructure that it’s eerily a blessing. Not only is WHT, and iNET as a whole, secure and unequivocally able to sustain itself should it be the target of destruction again, but so many others are safer. This was a malicious attempt to destroy WebHostingTalk.com. They failed.

Is WebHostingTalk loosing credibility and business because of the attack? I’ve seen some people to say that WHT team made a mistake in its statements. “Instead of saying that it could’ve happened to anyone, they should be taking their responsibility by simply stating they screwed up”, this is something someone said in a discussion about “Attack on WebHostingTalk” in LinkedIn. So do you think that you have taken full responsibility for something that you might not avoid?

I don’t see that we’ve lost any credibility. And I don’t see where we’ve avoided admitting fault with our infrastructure. We’ve said it was inadequate for today’s needs. But our current infrastructure is about as tight as it gets.

I’ve read that you have got your first PC in January of 2001. What is your technology level now? Do you have knowledge in coding, making web pages, or doing any other tech stuff, or you are involved in moderating and producing content only?

I’m comfortable with my PC. But I’m certainly not a guru. I can build a web page, but someone else can build a much nicer one much easier. I do some work on my own servers. But I get someone that knows what they’re doing when it gets too technical.

I’m curious which web hosting companies have use used until now and which was your first web host? You can share your opinion with their services if you of course find this appropriate.

The first hosting account I got was through Yahoo! That didn’t last very long. I needed more. Without naming names, because they’re no longer in business, I bounced from one Unlimited host to another before landing on WebHostingTalk.com. The community helped me with choosing a host. A couple months later, I got a reseller account. Then it was on to hosting myself. I have servers in three different data centers. I won’t name my favorite though.

Do you still own GetMeHosted.com?

Not exactly own. But I’m still around there. Frankly it’s more of a means to keep a pulse on the industry than it is to being a host.

Can you point your finger at any web hosting providers and to say “These are the best ones”?

I could, but I wouldn’t feel right doing it. Because of my position on WHT, I try to keep my personal opinions out of who to choose and not choose. Besides, there is no best host. For years, my WHT signature has included the line, “There is no best host. There is only the host that’s best for you.”

You said in an old interview that you liked philosophy. Do you have a favorite thinker/philosopher?

I can’t say I have one favorite.

You like playing guitar. I’m curious whether you are a Rock ‘N Roll fan and if “yes”, which bands are your favorite ones?

It’s hard for me to associate myself with one genre. But I suppose it might be classified more towards Rock ‘N Roll. I probably cover Pink Floyd more than any other group or artist. If I’m just listening though, I listen to more Van Morrison or Andrew Lloyd Webber. I have to give a shout out to John Prine though. Cuz that’s more like me when I sit down with Shelly (my guitar).

Now final question. I have read somewhere that you like cooking. If you have to bring all the WHT liaisons at one place what would you make for them?

That’s a large group. So I’d probably have to fire up the grills. Of course, if my dining room was big enough, I’d likely do some lasagna and/or spaghetti. One thing I’ll guarantee though, everyone will go home full.

Thank you Dennis. Good luck with you enterprises and wish you to have a lot of energy and to keep going!

Thanks for having me, Dimitar. It’s been my pleasure.

Another Overselling Web Host Went Unlimited

Posted by hosttycoon On April - 29 - 2009

sitegroundSiteground became another shared hosting provider that went “Unlimited”. The web host used to be number 1 ranked website in Google on “web hosting” search term for almost 2 years. It was known with its unrealistic offerings, which featured 200 GB disc space as a part of shared hosting plans.

However as many other oversellers, Siteground succeeded to attract customers and hasn’t failed to provide them with a decent service and good customer support. The company has been an advertiser of B10WH.com at the time when our web hosting media was more top web hosting list than an original resource for web hosting related content.

Salute Siteground! Unlimited sounds better than 200 GB disc space on shared server. Now the web host’s customers can not ask for their 200 gigs because no one know how much “unlimited” is?

PingZine - Quick Fact

Posted by hosttycoon On April - 28 - 2009

pingzinePing! Zine Web Hosting Magazine is one of the most influential media in hosting industry. I like it because it is quality and has a very nice design. Read what Keith Dunkan of PingZine said about the magazine.

“We print over 20,000 copies per issue, 85% shipped in US, 15% Canada, and overseas, we average 1.7 readers per copy bringing print readership to over 30,000 readers and have average 15,000 readers of the online version, bringing our estimated total to 45,000 readers per issue”.

PingZine is the longest running print magazine in web hosting industry. AS you can see from the above numbers it provides a great access to web hosting market and to the most influential decision-makers in the hosting industry. Reaching over 45,000 readers (in combination of print and online versions), Ping! Zine attracts audiences far beyond the traditional boundaries of host directories, portals, and forums.

HP Announced SAN Shared Storage To BladeSystem Matrix

Posted by hosttycoon On April - 23 - 2009

hp-lefthand-p4000-san-solutionsHewlett Packard announced that it releases a new blade server and storage system that aims to power the new generation virtual data centers and to be used for cloud computing class IT services and platforms.

Along with the HP BladeSystem Matrix (a a cloud infrastructure in a box) HP has said that the new HP LeftHand storage P4000 SAN is available as a standalone iSCSI SAN product or as a part of virtualized blade server infrastructure in a bundle called HP StorageWorks SB40c with P4000 Virtual SAN Appliance Software.

The HP’s announcement of the new enterprise IT storage solution came month after Cisco entered the blade server market with its new Unified Computing System for virtualized data centers, and a week after EMC introduced a Symmetrix V-Max storage system and new architecture. Cisco and EMC agreed to join forces to ensure their systems can easy to interoperate.

According to Paul Travis of Byte And Switch one of the challenges that data center managers have had to confront as they load many virtual servers on a single physical server is the demand placed on networks and storage systems, especially when virtual servers are moved from one physical machine to another to balance loads or improve performance. The ability of networks and storage systems to supply sufficient bandwidth or storage connectivity often is a limiting factor in server virtualization.

By adding the LeftHand software into their blade server rack, HP creates virtual storage nodes shared over a network and offers prospective client to benefit from the economic benefits of direct-attached storage. According to the server producer this simplifies the data center management management and reduces power and cooling needs. The Virtual SAN Appliance software can run on a server running a VMware hypervisor is certified byt the virtualization producer.

HP also introduced HP Storage Works 600 Modular Disk System, direct-connect SAS storage for its HP BladeSystem. It allows system administrators easily to allocate storage to blade servers so it looks like local storage, rather than networked storage.

The Modular Disk System 600 can hold up to 70 1-TB drives and up to 6 can be connected to a single HP blade system. HP said that for customers who need a lot of capacity, the system can scale up to 420 TB of storage that can be allocated across 16 BladeSystem servers.

The storage announcements were made when HP introduced the latest move in its “adaptive infrastructure” data center initiative, which the company has been pushing for several years now.

A key goal for HP is to automate much of the management of systems in the data center, and it highlighted the ability to create templates to handle much of the provisioning, planning, consolidation, and recovery processes. The company want to enable the data center executives to create a template and define the amount of computing, storage, networking, power and cooling, and other resources for, say, a mail and message system for 500 people or an e-store.

giuseppe-grillea-namedriveSome say that there are big money in domain after market. I would admit that I used to underestimate this niche and even when I was executive of a web hosting company, we never used expired customer’s domain to park them and to squeeze some money from them. But probably I wasn’t good enough for the job. Because Giuseppe Grillea from NameDrive. I met him on WebhostingDay 2009 in Cologne and he told me that many people used to earn money from their parked domains. It is the same with the company he works for. It makes a lot of money from the domain after market.

If you have to explain what NameDrive is with one sentence what would you tell you prospective customers?

Domain monetization, we create mini-web sites for empty domains and pack them with pay per click advertisements and domain brokerage services where we buy and sell domains for our customers or we put them at auction. Wow that was a long sentence.

Who the other companies, a competitors of yours on the domain parking and after market?

Sedo, Domain Sponsor, Parked, Hitfarm and many others.

Tell me more about NDX Market?

NDX Market is our platform where customers can buy and sell domains. You can buy the domains at a BuyNow price or in an auction. It is very simple to use and it is a free service. Using NDX Market you can also ask our brokers to help with the transaction for premium domains, in exchange of a moderate fee which covers also escrow fees and all the paperwork.

You said there is no contracts. So how do you then guarantee the client’s account In terms of payments and protection of their property?

When you sign up/open an account su NDX Market you agree to our Terms of Service which guarantee the protection of payments and property.  See the link: http://www.namedrive.com/txt_terms/Namedrive_Terms_and_Conditions_en.html

By the way in parking there is no exchange of property. The domains are in our clients’control at all times. They only point the DNS to our servers.

There is something like consulting service on NameDrive’s website called MisterBlog. Would you explain what is this?

Mister Blog keeps our clients and people in the industry updated on our industry. Mister Blogs is well loved and offers advice for free.

In general you can always talk to any of our brokers who will be happy to give you all the advice you need to manage your domains at best.

How much anyone would make from parking their domain with NameDrive on average. I mean if the domain is not that popular. Let’s say I have 10 domain that receive 3,000 visitor per month. What click ratio I would expect to have?

It all depends from the amount of traffic, conversion rate and types of products advertised on your page. Finance, credit card related will get more than say food, news, politics etc…  Also the conversion rate can vary a lot. Tourism portals always have a much higher conversion rate than a finance or electronics domain. The main point is that if you have underutilized domains you should park them and test them with different companies to see where your domain performs best.

There is only one way to find out. Park with us and you will find out :-)

You said in our conversation before the interview that your clients can sell even your domain names… ?

Our corporate partners, hosting and registrar can sell our 5,000,000 domains on their platforms if they choose to integrate with our system in exchange for a big portion of the sales commission. Individuals non corporate clients cannot sell our domains… but they can buy them :D

How long does it take for a customer of yours to get their money? Let’s say someone made $120 for the month of March. When they can expect to get their earning?

You will receive your $120 on the 15th of the following month: on the 15th of  April in your example.

It was good to talk to you. Tell me now do you use NameDrive for your own domains  :)  and send your message to domain name owners.

Of course I would not trust anybody else with my domain investments but our company! Thank you for your time and interview and I hope to see you soon.

frank-stiff-cheval-capitalWe all know what investment banking is, or at least most of us have learned something about investment banking… thanks to financial crisis. Well today “Investment banker” is probably not the most appreciated job in the world. Sadly most people are tending to think that investment bankers are guilty for the current global economic slowdown. Well I’m not one of them. So when I met Frank from Cheval Capital I was interested of his business. I asked them whether he would talk to B10WH and Daw Blog readers and he said “Yes!”.

Hi Frank, good to talk to you. There is a lot of things anyone would like to ask an investment banker (or at least I think so), during the current crisis. Let me start with this one. Is the financial crisis affecting the web hosting industry? My impression is that web hosting industry looks pretty much as isolated island, that does not need bailouts… It that true?

Hi Dimitar.  Its great to talk with you as well. I think your impression is largely right (at least so far.)  We’ve talked to a lot of hosters and our sense is that while most are doing fine, growth has slowed.  A line from the recent Microsoft conference that rang true was “steady is the new growth.”

After two years of web hosting mergers and acquisitions are the investors still interested of buying hosting companies? Which is the most interesting market niche - data centers and collocation providers, dedicated and managed hosts, VPS providers or Shared hosts?

While we have seen fewer buyers, there are still a number out there.  Keep in mind that the most common type of buyer is another hosting company that is choosing to add customers by purchase versus marketing.  As this type of buyer tends to buy out of cash flow, financing isn’t a problem.

Right now, we’re being most aggressive in buying shared hosting customers at good prices.  Overall, there seems to be demand in all the sectors we work in.

Do you think that once the crisis is over, there will be a growing investor interest in buying cloud computing and cloud hosting technology producers and providers?

I’m not great at predictions.  To me, it comes down to value.  If cloud operators can add customers at cost effective rates and thus create value, then investors will always be there.  Unfortunately, the tech sector is littered with great technologies that no one would buy.  All in all though, cloud computing looks pretty good.

I have seen that Cheval Capital have completed 29 transactions in 2008. Do you think you’ll make more in 2009?

I hope the trend continues but you never know ;-).  We’ve been very fortunate since we got started in the space in the late 1990’s and have completed over 140 hosting and ISP transactions.

How big web hosting company in annual revenue should have someone to be an interesting client for Cheval Capital?

We work with companies of all sizes.  A few years ago we started a small hoster program that is working quite well.  We’ve also been involved with some of the industry’s largest transactions.  So really, all sizes.

Would you tell me which are the most important things anyone should be prepare when selling a web host hosting company?

That is really hard to answer generically.  The key is to have the information that enables you to demonstrate the value of your business and that it has reasonable risk profile.  Typically the larger the business, the great the expectation by Buyers of financial and operating metrics.

As you know, there are two broad types of buyers, “Consolidators” that want to buy customers and move them onto their own infrastructure and “Strategic Buyers” that want to purchase the whole company and operate it largely as is.  Both will want to confirm:

(1) the amount of revenue that your customers generate and the stability of that revenue

(2) your ability to add new customers at reasonable cost and the ability of the buyer to continue doing so.

The Strategic Buyer will also care about the efficiency of your business and its assets and liabilities.

The top three things all hosters must have are:

  • An general overview of you, your company, its operations, etc.  (We have a form that we ask sellers to fill out that covers all of these topics.)
  • Income statements for the last several months and for the previous year with revenues broken down by the type of business; and
  • Backup to confirm those revenues (e.g. paypal, merchant acct stmts, etc.);

What about buyers… what do they want to see when they are looking to invest in web hosting business?

It really varies by buyer and the type of transaction.  Some buyers are creative and flexible and will look at anything that gives them a feel for the two items above.  Others are less so and require the other extreme of audited financial statements, tax returns, etc.  Typically, most Consolidators require less information.  I can’t stress enough that the key is to provide the buyer with confidence in the existence and stability of your customer base.

Something about Cheval Capital. Why did you decide to form an investment bank that specializes in web hosting industry? I’m curious how an investment banker decided to come to web hosting market.

Luck.  Our specialty has been working with venture capital backed companies that are consolidating industries or markets.  In the late 1990’s we got hired by Verio and the Centennial Funds to do ISP acquisitions and it just went from there.

What is your projections about the hosting industry’s developments? Do you expect growth in 2009, or web hosting will be affected from the global crisis?

I think the industry is fortunate in that it is a recurring revenue business with strong margins and, for most, little to no debt.  It also provides a service that is absolutely core to business.  Those characteristics should protect the industry from major trauma.  However, in bad times new company formation will slow and customers will go out of business.  Whether this causes the overall industry to shrink or just grow more slowly I don’t know.

Finally, is there are any company/brand in web hosting that you’ll love to consult, sale or buy?

We’ve been very lucky to work with a lot of great companies in the web hosting business, both large and small.  My hope is that it will continue.