STOP
Do I have your attention yet?
Seriously, you as the reader, are you here for kicks or to get business done?
If you've got any interest in this thread or subject, take 5 minutes to read my post.
I could probably rant here for pages but since the attention span here on GFY is shorter all the time I'll do my best to be brief. I've already engaged my legal counsel several times on behalf of friends and clients regarding Jupiter Hosting (NaviSite) and their contract for providing service. Before I share my thoughts, however, I need to bitch at every single one of you for some minutes....
It's not the Wild West. It never was. You all just drink too much at the tradeshows and have been spoiled by the prevalent informality of our industry over the last ten years. One way or another, many of you who were spoiled pre-contract kind of got what you paid for in the long run.
Even if you are hypothetically the recipient of bad service with NaviSite, you have precarious cancellation rights.
This is just business. The contract that was executed by hundreds uses standard terminology, clauses, fees, penalties and limitations of your rights. Contracts are no different from any carrier, data center or other hosting company that has clients execute such agreements. Don't believe me? Read what you might have signed from Cavecreek, National Net, Equinix, Switch and Data, Cogent, Level3 - any contract whatsoever for hosting, bandwidth or co-location service from anywhere. Although there might be some slight variances, any contract worth a sh!t will AT LEAST include the following:
1) A requirement that formal notice be provided within X days of renewal.
2) An automatic renewal for successive periods, typically 12 months at a time, if notice is not properly given as required.
3) That any cancellation does not relieve you from the full liability of the contract. By my observance, about half of the agreements out there actually accelerate the damages/fees to being immediately due.
......and much, much more.
They have all of the rights, that is the purpose to having a contract executed. Are you all blind? Jupiter was bundled for sale with a valuation based on it's assets, liabilities and contracts in place for continued service. This is why there were excellent promotions at the time which required a 2 year term contract - it increased Ray's multiple (the valuation). And good for Ray, seriously, all of you who were friends with him at the time should be pleased that he had a successful exit. Shame on you for suggesting he did a bad thing - you signed the contract and furthermore, he had no way of knowing how the new owner would truly handle service and support post-sale.
Suggesting this is Ray's fault is NO DIFFERENT or less absurd than a minor's parent bitching at you for what their kids are surfing online in their home. Personal responsibility, people. Dude wanted to retire or move on, good for him, this is how business evolves.
You didn't read what you signed, perhaps you never do. If this is the instance that learns you the life and business lesson which helps you on some future business decision, great.
Let's at least make the glass half full here, everyone needs to learn this business lesson. There's no 'bro' club when it comes to contracts. When you sign, the paper (unless properly disputed legally) is the final word and if terms aren't met then you're OWNED. All contracts worth a sh!t immediately make void/null any previous or future verbal agreements and will establish themselves as the deal authority.
NaviSite is a 100+ million dollar business. Yes you have been turned over to a real lawyer. Before it got to them, it was at a real collection agency which likely put it on your credit report. As previously mentioned in this thread, they are counting on a default judgement or to win in a court of law. What? You don't think a lawyer will do an hours work on the phone in advance and take 2 hours out of his day for a brief court appearance to make a few K? LOL By virtue of the fact that you are already this far along in the process you have already been reduced to statistics and probabilities - totally worth their time.
Everyone's first response to something like this should be to contact an attorney if they don't plan on paying the bill due to either hardship or disagreement.
OK, now that I've brow beat all of you - just know that it's out of love. Here is what else I have to say:
1) Hands down, based upon what I have been told, NaviSite *may* have abusive collections practices. I've had stories recanted to me of people who were sworn at, hung up on, threatened inappropriately.
2) It *may* be a common practice to obfuscate the cancellation process. I say may, but I've already worked with several people where this has been by all appearances true. I have had multiple clients given the run-around. One of which even gave proper notice on one server prior to the 45 days and then a short while later on the other two servers and was STILL coerced into paying for future service where it was clearly not reasonable.
3) If you are not in arrears with NaviSite and are a co-location customer you HAVE THE RIGHT to have your equipment shipped to another host. Contractually, you're still on the hook for your term but if you're exiting don't allow them to falsely suggest otherwise. (I also watched this scenario play out).
4) There might be some instances where they DO NOT HAVE PAPERWORK. I strongly suggest that even if you have maintained a copy of your contract that it not be shared. They have been known to be in pursuit of some debts for which they have no documentation on file.
My advice? Well, here are a few thoughts:
- The service isn't good, begin documenting support errors.
- Put in cancellation notice as far in advance as possible, properly and demand confirmation that your request has been received.
- Setup a migration plan to a host that suits your needs for service, performance, trust and pricing.
Hosts like myself and perhaps a few others are fully committed to providing exceptional value and service, ongoing. Personally, I put my money where my mouth is. I have purchased millions in equipment thus far, on handshake deals.
I'll tell you what, that in my opinion is the most honest motivator in the world for 100% customer satisfaction which includes exceptional pricing and service.
There is nothing wrong with contracts if you are open to signing them, certainly many situations ought to have them in place. The onus is on you as the customer to make sure that you find the terms of any such contract fair and reasonable, BEFORE SIGNING. I have more than many millions under contract with
my signature to provide my clients with exceptional service but I had every single line of all those documents reviewed and quite a bit revised. It's costly, time consuming and often a pain in the ass - sometimes deals die as a result - but it's a true cost of doing business.
Yes, I sign significant agreements to provide service to MojoHost clients who give us nothing but a handshake. This keeps us sharp, motivated, flexible by virtue of client ability to pick a new provider at will. While this won't scale infinitely in my business plan, it is certainly an excellent foundation until revenues get to a point where bank covenants eventually demand it. We've certainly earned the right to put smart contracts in front of our clients, just as any competitors do, however it is not yet standard practice.
I am of the opinion that as hosting is the center of your online world, you should be free to leave if service is not meeting yours needs. I also believe that an appreciative host will not only work with you to facilitate this, but make the transition easy. Every host errors from time to time, it is how they respond to their client and whether or not they seek to learn from the situation which defines them. We're not perfect, nobody is, but we try damn hard. When we do make a mistake we work 110% to fix it regardless of time and money cost. Furthermore, we are always learning from our mistakes and implementing measures to prevent them from repeating.
Finally, if you are already in the process of a dispute or conceive that it is on your horizon I suggest that you retain legal counsel that can properly represent your best interests. I personally recommend the one who represents MojoHost and also all of my personal interests: Corey Silverstein.
His skills and the resources of his firm are exceptional. If you want the best in any contractual dispute, negotiation or litigation he has my highest recommendation. I consume around 300 billable hours annually and I think this fact speaks for itself.
If you are already a friend of mine then a discount will be offered on his already fair rate. If you are decided to make a move to MojoHost, you bill for legal services may have the potential for further offset. In any circumstance, if you have a real situation don't just get yourself any lawyer - hire the best. I often observe that individuals attempting to resolve complex legal scenarios do themselves a substantial dis-service.
As coincidence has it, Mr. Silverstein will be my "side arm" at Internext and available for meetings and consultation Monday through Wednesday.. as am I.
Happy Holidays,
Brad Mitchell