Feeds

Hosting outfit goes PERMANENTLY TITSUP after 'lifetime' plans kill biz

NodeKi set to become lifeless corpse

Boost IT visibility and business value

A US-based web hosting firm has gone bust after it discovered too late that its "lifetime" plans for customers pretty much cost the company its (ahem) life.

NodeKi told subscribers in an email message (h/t to Reg reader Darren) that it would be going titsup for good as of 1 February.

"We want to inform you in advance that the NodeKi lifetime plans and server will cease to exist on February 1st of 2014," it told customers.

NodeKi admitted in its miserable missive that the deals had killed the company.

Unfortunately, the "Lifetime" plans were not a sustainable business model.

We can't continue paying for servers, software, bandwidth and support if there's no incoming money to cover these costs.

It's not remotely possible to provide any product "for life" that has recurring costs associated with it.

Worse still, the existing management team had been saddled with the plans that were implemented and sold by NodeKi founder and one-time CEO Jonathan Tittle.

The misery continued for the company's customers, too.

They were told "we are not able to offer refunds. This is not something that is open to debate." NodeKi apparently had a "no refund" policy in place.

Finally, those users who haven't already scarpered in the foolish search for another "lifetime" deal with a rival hosting firm, were told that support would only be provided on a "best effort basis" until NodeKi hits the kill switch at the start of next month.

It "respectfully" told customers that they basically have two weeks to skedaddle to another service.

Remember kids, agreeing to a "lifetime" deal does not normally refer to your lifetime - it's all about the sustainability of the biz and its eventual death warrant, which in this instance was signed by NodeKi. ®

The essential guide to IT transformation

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
Oracle reveals 32-core, 10 BEEELLION-transistor SPARC M7
New chip scales to 1024 cores, 8192 threads 64 TB RAM, at speeds over 3.6GHz
Docker kicks KVM's butt in IBM tests
Big Blue finds containers are speedy, but may not have much room to improve
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Gartner's Special Report: Should you believe the hype?
Enough hot air to carry a balloon to the Moon
Flash could be CHEAPER than SAS DISK? Come off it, NetApp
Stats analysis reckons we'll hit that point in just three years
Dell The Man shrieks: 'We've got a Bitcoin order, we've got a Bitcoin order'
$50k of PowerEdge servers? That'll be 85 coins in digi-dosh
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.