What happens when a host goes out of business?

Dr. McKay

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I saw many new hosting companies appeared but after some years they could not maintain their business and they are off, in that case, what will happen if user data is lost? is there a law to where they have to give you time to make a back up?
 

HostColor

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Well, we have been in business for almost 2 decades, so I can only tell you what happened to some other companies. Those owners of web hosting providers who have a customer base usually sell the business and exit. Others, who cannot sell, simply disappear, but those a usually very small firms. Companies that have assets usually sell. Other than data backups is not something to me made to protect against a business failure of the web host. they are a must and protect yourself against hardware failure or loss of data.
 

portuguesedude

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They usually reach another hoster and migrate accounts.
you should always have a backup !!!
 

Marcus_SM

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Yeah, it's usually a sellout of paying customers, usually to someone who runs a hosting company of their own. Backing up your data is always a good idea, though. No matter how big and solid your current provider is.
 

Dr. McKay

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They usually reach another hoster and migrate accounts.
you should always have a backup !!!
Yeah, it's usually a sellout of paying customers, usually to someone who runs a hosting company of their own. Backing up your data is always a good idea, though. No matter how big and solid your current provider is.
If a hosing company is going to off their business, will they announce to their customers?
 

portuguesedude

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portuguesedude
Because acquisition sellout etc are commom on the industry for small players.
I have this situation happenned 2 times with me
A portuguese company notified me all business where going to pass to another company, coz it was going to shut down hosting business. That was in 1999. All accounts where transfered. Since that company was acquired by another major player ( i had left them since ).
I used to have many domain at domainsite.com , they got acquired by name.com
etc etc
Usually clients databases have a market value, and can get "monetized" and traded.
Close shop and say nothing to customers is not ethical, but for sure exists.
 

hostnamaste

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90% of the hosting companies are selling their website and business to other reputable hosting companies and get a handsome money. Clients and Services will be migrated to new companies, billing and portal. For those 10% of the hosting companies ran away and would not find on the internet like they were not there in the first place.
 
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hostens

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If a smaller hosting company decides not to continue the business, there are basically two options. It's sold to another bigger company, which overtakes the customers with all their data and services and you continue to use your hosting just under the different brand. Of course, some things may change under the new ownership.

However, the worst case scenario would that one that there is nothing, you basically can't reach your data, the server, and the client account. Which means that the company just has gone without taking care of the customers.
 
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