PowWeb dumps customers–why?

This past weekend, PowWeb entered the Business Execution Hall of Shame for dumping with no notice a top Internet web entrepreneur after having solicited web hosting on the basis of:

  • Unlimited bandwidth
  • Unlimited disk space

Why would a company so arbitrarily and capriciously dump a loyal customer of 6 years with no notice?

One could speculate that PowWeb makes certain assumptions about how much bandwidth and disk space it expects a “typical” customer to use.  It is likely this web entrepreneur exceeded the norm, perhaps by a very wide margin.

What has happened in the last 6 years to the Internet?

Two important factors are driving the need for more and more bandwidth and disk space: audio and video. These factors really didn’t exist 6 years ago and, today, represent a significant drain on resources that normal html web pages do not.

I suspect that PowWeb took a close look at who the big consumers of disk space and bandwidth were amongst their customer base and unceremoniously dumped them to protect the infrastructure needs of their other clients.  It may well be that a very small number of customers tied up a sizeable chunk of PowWeb’s infrastructure capacity.

Is this excusable?  No.  PowWeb remains in our Business Execution Hall of Shame for its actions.  It is horrible to dump a customer with no notice.  They should have given notice and a reasonable period of time to migrate to a new web hosting company.

It is not realistic for PowWeb to offer the “earth, moon and sky” at the lowest price in their market particularly given the way the Internet has involved to require more and more bandwidth and disk space.  It is not, as has been proven here, a sustainable business model for them.

The question is who within PowWeb’s customer base is next to go if not now, next week, next month, next year?

Dave Gardner, Gardner & Associates Consulting

http://www.gardnerandassoc.com

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