• Howdy! Welcome to our community of more than 130.000 members devoted to web hosting. This is a great place to get special offers from web hosts and post your own requests or ads. To start posting sign up here. Cheers! /Peo, FreeWebSpace.net
managed wordpress hosting

Hostrail Gone!

Dear HostRail Customers,
I have personally tried all possibilities in order to (a) provide customers with 24 hours or even less to take backups of data or (b) sell the company.

Unfortunately i was unable to reach into an agreement with LimeStoneNetworks which was my main concentration as i was aiming to provide customers with time to get backups of their site. Even the solution of me putting a personal guarantee on the debt doesn't seem like a solution and doesn't look like this will get accepted although this hasn't been rejected.

I have also been unable to reach into an agreement to sell the company to anyone.

HostRail always provided a cheap service, a service that is not really sustainable in the long run. The problems that hit us during April caused us to make a large loss that is affecting us still in many ways.

To conclude as of 28th June 2011 8pm EEST HostRail and C & C Advanced Online Services Ltd is officially closed.

I would like to thank everyone that supported us and would like to apologize for the large inconvenience this has caused you.

Due to my own personal problems i will be unavailable here in Facebook for some days now.
This was posted at wht
 
Yes it was posted on WHT...

But didn't they open in like 1998? Did anyone get a hold of the owner yet? I seen his username online on wht..

Good Luck.
 
Well hostrail was sold in 09 or 10 to this other company and now this company went belly up.
 
Looks like they flew the coop! And left alot of people hanging.

Saw that coming. Back in April they had a fairly major outage with their VPS nodes- all of their nodes were experiencing load related problems caused by the amount of overselling they did. That's what wiped out 321hosted, and caused intermittent outages for me as I rebalanced my clients onto the Xen VPSs I had purchased elsewhere.

Seems like they never did fully recover. The VPS from them I had at the time disappeared a few weeks after that outage because with 321hosted gone the billing system it had been paid for through had vanished. I later noticed the IP having been reassigned to someone else, obviously they didn't miss my business nor make any effort to get me to cut out the middle man and continue the service.

Good thing I bailed when I did though. This is why when running any kind of service even on your own hardware, make backups and don't put all your eggs into one basket.
 
Last edited:
When you're offering VPSs for $1 or pretty darn close to it...that barely covers the PayPal/Credit Card fees. There is no way it is sustainable. Too bad the customers didn't realize that.
 
When you're offering VPSs for $1 or pretty darn close to it...that barely covers the PayPal/Credit Card fees. There is no way it is sustainable. Too bad the customers didn't realize that.

That's right. in fact with 2checkout we do $1.00 for like 1 more IP. it cost about $0.78 for that $1.00 so think about it. But they where thinking get about 100 of the $1+/mo and be okay with cheap servers. overload cheap servers and see what happens. I also seen they got free IP's off LSN not sure if it's right or not but that could also do it.

-
 
I heard the same thing about the IPs. Even so, the servers had to be so oversold, it's not even funny. I was always tempted to try one of them out just for fun, but never got around to it. I read some of the horror stories.
 
I heard the same thing about the IPs. Even so, the servers had to be so oversold, it's not even funny. I was always tempted to try one of them out just for fun, but never got around to it. I read some of the horror stories.

Ultimately, it wouldn't have been worth the time.

Getting in was fine. The reseller I used had near-instant activation, I was up and running with the basic framework of my standard loadout within a few hours.

Then I started running into the effects of the overselling. The machine was sluggish, management scripts were hanging with load reports in the 20-30 range. A few support tickets later it got moved to a different node, which smoothed it out for the most part- although they did continue to have intermittent outages for whatever hardware-related reasons.

And then the April meltdown hit. It was supposed to be a normal hardware upgrade with some software updates. But by the time all was said and done, all of their nodes were down for several days. When they finally came back up, they were so unstable and grossly overloaded that it was pretty much unusable. Unloading data from the VPS took several days of constantly retrying and retrying, even staying up to early morning to take advantage of off peaks in the hopes of better transfer rates and less timeouts. If I had timed myself getting everything off that troubled VPS to pay myself for it, I'd have spent more getting off of it than I had in the entire time it was online.

Ultimately the outages took out 321hosted, killing off the billing system I had been using to pay for that VPS. So good thing I jumped ship when I did, because not long after that it stopped responding entirely and I can only assume was deleted. Eventually I was again presented with a ssh login at that IP, but none of my user/pass combos worked so I can only assume the IP was reassigned to another client.

All told? This was a doomsday waiting to happen. I do hope everyone else had backups.
 
Well, sucks to be the poor bastards that were hosted there.

So aggressive you are! It might be a real trouble for all those people you have just called bastards. Wish you luck to be successful, but, I believe there is something like Karma, you know.

As for the hostrail... It is just an example on how companies may not stand the competiton of hosting world.
 
Oh come on WebIntellects...

Competition? It had nothing to do with competetition. HostRail had no competetitors. The problem was that his service was unsustainable. The servers were so heavily overloaded that there was no way it could work.

As for the clients...sure, you have to feel bad for some of them, particularly the ones who didn't know what they were getting into, or the ones whose hosts used HostRail to offer hosting. But a lot of people knew what they were getting into. They were buying VPS servers for $1, knowing damn good and well that is isn't sustainable. I have no pity for those people at all.
 
I'm not surprised at all.

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...
 
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.
 
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.
 
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.

---------------------------------------

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.

---------------------------------------

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.

---------------------------------------

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