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bash · 04-28-2002, 03:43 PM

Their business plan could fail because they are not profitable and won't be for a very long time.

They are a publicly traded company and they are running their business like a private company. Stockholders demand to see profits at some point. How do you think the stockholders will vote? A) Liquidate and make a quick buck. B) Raise prices dramatically and make some steady gains and maybe become profitable or C) loose money forever until your stock is worthless.

What would your opinion be if you were a stockholder in that company?

Their original bandwidth model was based on providing broadband to office buildings. They say right on their web page that ISP's are not their primary target customers.

Why?

Because hosting companies use a shitload of outgoing bandwidth, like a 10/1 ratio.

I don't think the big players are bashing Cogent, but they have seen this all before with Exodus...

http://siliconvalley.internet.com/ne...892671,00.html

The bandwidth wars were finally coming to an end after most of the .com's died... prices dropped from a premium and stabled out.

The truth of the matter is that a guy just pushing some galleries at 50 cents a gig won't be affected either way... He's making some bank by using Cogent and that's fine. He's an opportunist like most webmasters.

It's the hosting companies that based their business model off Cogent's pricing and will not be able to resell anywhere near that rate if Cogent takes a shit. (Contracts become null and void once a company goes chapter 11).

Big hosting companies who have already been around for years and are getting decent rates from major providers and are not about to take a chance on this.

The truth is that Cogent isn't bad performance wise and if your a guy that's only using a few hundred gigs a month then go for it... you've got nothing to loose.

04-28-2002, 03:43 PM
bash Confirmed User Industry Role: Join Date: Mar 2002 Posts: 245	Their business plan could fail because they are not profitable and won't be for a very long time. They are a publicly traded company and they are running their business like a private company. Stockholders demand to see profits at some point. How do you think the stockholders will vote? A) Liquidate and make a quick buck. B) Raise prices dramatically and make some steady gains and maybe become profitable or C) loose money forever until your stock is worthless. What would your opinion be if you were a stockholder in that company? Their original bandwidth model was based on providing broadband to office buildings. They say right on their web page that ISP's are not their primary target customers. Why? Because hosting companies use a shitload of outgoing bandwidth, like a 10/1 ratio. I don't think the big players are bashing Cogent, but they have seen this all before with Exodus... http://siliconvalley.internet.com/ne...892671,00.html The bandwidth wars were finally coming to an end after most of the .com's died... prices dropped from a premium and stabled out. The truth of the matter is that a guy just pushing some galleries at 50 cents a gig won't be affected either way... He's making some bank by using Cogent and that's fine. He's an opportunist like most webmasters. It's the hosting companies that based their business model off Cogent's pricing and will not be able to resell anywhere near that rate if Cogent takes a shit. (Contracts become null and void once a company goes chapter 11). Big hosting companies who have already been around for years and are getting decent rates from major providers and are not about to take a chance on this. The truth is that Cogent isn't bad performance wise and if your a guy that's only using a few hundred gigs a month then go for it... you've got nothing to loose.