Hostrail Gone!

**Tyler** · July 1st, 2011, 17:06

Originally Posted by Fe-Hosting

Same here. But you must feel bad for the users who had no clue and could think you can get a VPS for that cheap and think it will run for ever. it take me back to the 250free.com issues they had. I just hope they had backups are where able to get them before servers gone poop...

It had nothing to do with the cheap VPS - they simply had no idea how to run a company.

**wswd** · July 1st, 2011, 18:05

Originally Posted by Tyler

It had nothing to do with the cheap VPS - they simply had no idea how to run a company.

Actually, it had to do with both. You cannot offer VPS's with the resources they were offering, at those prices, without severely overselling the servers. I haven't looked at their prices in some time, but I would assume the numbers don't add up to even pay for the cost of the servers.

**Tyler** · July 1st, 2011, 18:26

Originally Posted by wswd

Actually, it had to do with both. You cannot offer VPS's with the resources they were offering, at those prices, without severely overselling the servers. I haven't looked at their prices in some time, but I would assume the numbers don't add up to even pay for the cost of the servers.

I am Constantinos Coudounaris, Chief Executive Officer of HostRail. I have some unfortunate news to announce tonight.

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On Friday 24th June 2011 our Providers have informed us of a 60% upcoming price increase that is taking effect from the 28th June 2011, this was an extremely short notice for us and completely unexpected - as small of a short notice as it was we had to take action immediately in order to be able to continue providing service to our clients, i have had meetings with every single HostRail Staff Member as we needed to take a decision and we have taken our decision which is provided below.

Due to the current economic crisis that is affecting all companies in the planet we are unable to deal with this 60% price increase using our currently approved budget for 2011 and we are unable to approve a further budget for 2011 at the current stage, this means that we will be forced to pass on this 60% price increase to all clients as of tomorrow evening. Tomorrow evening we will be sending Invoices to every single customer with the 60% price increase, unfortunately this price increase will have to be paid by Tuesday morning so we can cover the 60% price increase our providers are asking.

We have tried all possible alternatives and solutions however the only solution is to pass this price increase in full to our customers, this is not something i want to do, this is not something i like to do, this is something that i have fought for 2 days now to try to avoid at all costs however its not on my hands anymore so i am unable to do something more.

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IMPORTANT NOTE

For the customers that will not be able to pay this 60% price increase i recommend that you proceed to the immediate cancellation of your services as we will be suspending all Services on Tuesday morning that have not paid this price increase. I should clear that this price increase willl be applied to all of our customers, even to customers that have ordered their service today.

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I apologize in advance for any inconvenience this may cause however i am unable to do anything and the people that know me personally know that i have given a large battle to try to cover up this price increase myself but this was impossible.

Best Regards,

Constantinos Coudounaris

Chief Executive Officer

HostRail

Hello,

We are Hostrail's, Switzerland dedicated servers provider. We are writing this post for clarify the situation.

We do not raise any price. Price are all the same as we started. Hostrail has always billing issues. SERVERS SHUT DOWN BECAUSE OF BILLING ISSUES.

There is no cooperation in this situation. They have overdue invoices. We gave them 10 days but they do not respond it. We saw them, they were login into clients area but they did not give any response.

When we shut down their servers, they blame us and they said they did not get any invoice, ticket or reminder mails. So we gave them the mail logs.

On Saturday they want 2 days for payments, they sign document about it and we power on their servers again. But they did not pay it again.

This is the real story about Hostrail and Switzerland. We have all documents about it.

SO, there is no negotiation about the prices and others. All of the situation is about their unprofessional behaviours, lack of dicipline and billing issues.

If there is any questions about it, please sent an email to hostrail@hosthink.net. Our staff members will try to help you ASAP.

Regards,
Seref Cankaya
CEO
Hosthink Internet Services

wswd: Either way you want to look at it, if they were selling at such a low cost that they couldn't make a profit, that means they have no idea how to run a business/company.

**wswd** · July 1st, 2011, 22:55

Yep, healthy combination of the two. Just a terrible business. He made a crapload of money though, I'm sure.

**deanhills** · July 2nd, 2011, 06:09

Originally Posted by wswd

Yep, healthy combination of the two. Just a terrible business. He made a crapload of money though, I'm sure.

I've always been curious. How does one make money out of a business like this?

**wswd** · July 2nd, 2011, 13:01

You have a cheap $200 server and load it up with >200 VPS accounts at $1.60 each, or whatever he was charging. I have no doubt he was making at least a couple hundred bucks per server. And then you don't pay your bills. That always helps with profit. ha!

**[JSH]John** · July 2nd, 2011, 13:48

At their pricing no wonder they went off the rails... Hopefully their clients learn from this and spend more on a more reliable host.

**Tyler** · July 2nd, 2011, 17:34

It didn't exist. In the end he owes hostlight/privatelayer $1000 alone and Limestone around $17,000. He tried to cut a deal with LSN to get the servers online for 24 hours but they seem to be diggin in their heals.

At this point the owner has officially closed the business and has been deleting anything about hostrail off his facebook profile.

Francisco

http://dsservers.net/images/Screensh...2_16.32.46.png

**colorhost** · July 2nd, 2011, 22:57

Well, that stinks.

I feel bad for there customers, not them.

But yet again, Thats what they get for choosing a person that didnt know how to manage there servers and a VPS for 1.00$

**wswd** · July 3rd, 2011, 02:31

Gotta do your research. Honestly, people looking for a VPS know what they are looking for. Some random guy off the street normally doesn't go specifically looking for a VPS server to host their first website. They know the prices, and they know how unrealistic a VPS for $1/mo. is. I don't feel sorry for any of them.

The people I feel sorry for are the ones with shared or reseller accounts on these servers, because their provider was using HostRail to run a hosting business.

**PrimeGalactic** · July 3rd, 2011, 02:41

Failed!
One question to focus on is; what really happen?

**Decker** · July 3rd, 2011, 08:42

Originally Posted by ihav2names

One question to focus on is; what really happen?

Er read the above posts!

HostRail always provided a cheap service, a service that is not really sustainable in the long run.

At last one of them admits it!!!

At hostrail.com's website now.

Dear HostRail Customers,

I would like to apologize for the prolonged duration of the outage, we are in the final stages of resolving this.

We will try to keep you updated on our Facebook and Twitter Accounts:

http://www.facebook.com/hostrail

http://www.twitter.com/hostrail

--

Constantinos Coudounaris, CEO of HostRail.com

If they still have some sort of website running why not just update people there instead of having them run around on Farcebook and Twitpage? Even if it's a tiny free account there would be more than enough to have something to properly inform clients.

Domain seems to be hosted under volumedrive.com, look at their prices too!

**Seraphim** · July 3rd, 2011, 10:15

There's a reason for that- if everyone floods onto their website while they are still rebuilding things, it risks running it way over bandwidth cap and/or crashing it by overload.

Plus right now they have a lot of unhappy customers right now that would happily smear them.

Odds are what ultimately did them in was the stability problems towards the end - downtime means lost clients, coupled with bandwidth overages caused by the overselling especially as everyone started jumping ship from the stability issues and began unloading all their stuff.

I'll just about guarantee someone will pick up that market share by offering an impossibly cheap VPS only to have another encounter like this appear a few months later.

**Decker** · July 3rd, 2011, 10:22

Have a look - it's a text only page, you really think a small forum with 1 subject is going to drive usage over.

They have more issues than a small amount of transfer, even a 'flood' would be pretty small.

**SiberForum** · July 4th, 2011, 10:09

As I realize, they have not suggested any compensation for those who were left at the 'dead' servers? Also may conclude the provider has led not very good business, in term of proper marketing... this may be an example of bad experience of being a reseller these days