Posts Tagged 'Domain Names'

March 31, 2011

The Path to Hosting 19+ Million Domain Names

If you own a business, your goal is to be wildly successful. You might look at financial growth, operational efficiencies or customer satisfaction, but at the end of the day, you want to execute on your vision to continue it. With SoftLayer's management team, company culture, innovative platform and focus on the customer experience, we've managed to become a phenomenally successful and fast-growing company.

I run the Market Intelligence group at SoftLayer, and my team is responsible for reviewing success metrics internally and in comparison with many of our competitors. We have a wealth of data at our fingertips, and one of the most interesting statistics I track is related to market switching data.

Today, I was looking closely at some of our most recent domain name data, and I came across some pretty amazing information. We have millions of data points instantly available for filtering and sorting, so we can produce some pretty insightful market intelligence that can help us make better business and customer decisions.

While reviewing that domain name information, I did a quick pivot exercise in Excel to see the number of domain names hosted by SoftLayer - not just DNS hosted by us, but a pretty comprehensive view of the number of domains hosted on our infrastructure. As of March 1, 2011, we had 19,164,117 domains. Yes, you read that correctly: More than 19 million domains are hosted by SoftLayer. To give that a little context, the total domain name pool was 282,602,796, so we hosts about 6.78% of all domain names on the Internet.

That's impressive, but it's not the end of the story.

The number of net new domains coming to SoftLayer on a monthly basis is even more remarkable ... From October 2010 to March 2011 - a 6 month snapshot - the total number of domains hosted on SoftLayer infrastructure had compounded growth of 124%:

Domain Growth

What will the next six months hold? You can bet I'll be refreshing the data to keep an eye on it. Without extrapolating much other information, I'd say that the growth numbers are astounding and they're indicative of an unwavering confidence from our customers.

-Todd

Categories: 
July 8, 2010

Scams

So I’m sitting at my desk pondering deep, legal thoughts: “What is more boring to read – a patent or a real property lease?” “Why does our CFO like to wear pink?” “I wonder if we left food on the counter, and if The Dog ate it?” And then I think, “Can a lawyer be scammed?” As in scammed by the Nigerian email scam? (Rest easy - this is a hypothetical as far as your lawyer is concerned. The answer is a resounding “No!” At least, not yet, to date…..) After all, the lawyer is the one to sue people when you fall for the scams. And the lawyer is generally cynical and wary and suspecting.

But, alas – in general, the lawyer can be scammed. One Texas lawyer was approached by a Japanese client to do collections work. He agreed and was in the process of initiating the process when the client indicated that one of the companies that owed it money had paid. So the client sent the check to the law firm to deposit and indicated that the firm should deduct their fee and wire the rest of the money back, and then proceed with the remainder of the collections. The Texas lawyer had his staff check to see if the check cleared, and it was allegedly confirmed by the bank that it had cleared. So the fee was deducted and the rest of the money ($182,500.00) was wired back to the Japanese client. Shortly after the wire transfer took place, it was determined that the check was fraudulent, and they tried to stop the transfer, but it was too late. After realizing he had been scammed, the lawyer declared, “I’m a capital ‘D’ Dumbass.” http://www.law.com/jsp/article.jsp?id=1202427717175. Other attorneys have fallen for this, or slight variations, as well. http://www.law.com/jsp/article.jsp?id=1202448356229.

Another attempt at scamming that we in-house attorney types see quite often involves a company’s trademarks or domain names. The email typically reads as follows:

Dear Manager

We are a professional intellectual property rights consultant organiz-ation, mainly deal with the global domain name registration and in-ternet intellectual property rights protection. On March. 22th, 2010, we formally received an application from KangShen Technology Lim-ited, they applied to register the internet brand (softlayer) and some in China and Asia's domain name.

During our preliminary investigation, we found that these domain names' keyword is fully identical with your trademark. Therefore, we need to confirm with you, whether you consigned KangShen Techno-logy Limited to register these domain names with us or not? Or, is KangShen Technology Limited your business partner or distributor?

If you have no relationship with this company, we assume that they have other purposes to obtain these domain names.

Currently, we have already suspended this company's application temporarily due to the seriousness of this isuue. In order to avoid the vicious domain name grabbing, please let the relevant person make a confirmation with me via email as soon as possible. Thank you for your support to our work!

Best Regards!

Well, that doesn’t seem like a scam. Those nice people are letting us know that some other company is wrongfully trying to register our domain name in China and Asia. How can that be a scam? Here’s what happens:

Dear Nice Chinese Registrar Company:

Thank you for alerting us to this evil deed. No – KangShen Technology Limited is not our business partner or distributor. They are trying to usurp our valuable trademark and domain names in China and Asia. Please do not allow this registration to go forward. Thanks again for being so alert!

Dear SoftLayer:

You are so welcome! We are so glad we prevented them from illicitly using your domain name. In order to protect your rights to these domain names that they tried to register, we will register all of them for you in China and Asia for $3,800.00 USD. Please let us know when to proceed.

So then you wire your money to the Nice Chinese Registrar Company, and you never hear from them again, and your money is long gone. So what seems to be a Registrar trying to help you out, turns out to be a scam.

Lessons: Lawyers can be scammed. Trust no one on the Internets. Do not share any personal information or credit card information with anyone (or any entity) that asks for it in an email. No one is just going to give you money. If you just want to give your money away, play the lottery or give it to me. CFO’s who like pink appear to be inherently evil.

April 2, 2009

We Need New Small Businesses

It is often said that small business is the backbone of our economy. According to the U.S. Small Business Administration, small business employs half of all private sector employees. Over the past decade, small business has produced between 60 and 80 percent of net new jobs. We need small businesses to prosper and lead us out of the economic mess in which we find ourselves.

I track growth in domain names every week. I think it indicates how quickly new small businesses are being formed. After all, what business can you think of today (large or small) that does not have some sort of web site? I can’t think of any. One of the things on any small business start up checklist today is the web site. Hence, most all of them register a domain name.

So what’s been happening with growth in domain names? Lately, it’s not too pretty.

Chart

With all the talk lately about stimulating the economy, one of the best ways to do this would be to encourage the formation of new businesses.

Some would argue that we need to fix the credit market mess to help banks be able to lend to small business startups. This couldn’t be further from the truth. How many small businesses do you know that started with a commercial loan from a bank? I cynically say that banks do not want to loan to businesses until the business can survive without need of a bank, and that was true even before the credit crisis. This was certainly true in SoftLayer’s case – when the founders were preparing for launch in late 2005, there wasn’t a bank anywhere that would touch the SoftLayer business plan. What I’m saying is that the credit crisis isn’t that much of a barrier to small business startups. Passionate entrepreneurs will find a way to get going.

But all the passion to start one’s own business doesn’t go very far in the face of the real barriers to starting a business. One of the real barriers that an entrepreneur must overcome is tax issues. Do they begin as a sole proprietor? A partnership? An LLC? An “S” Corp? Should they incorporate? All of them have different tax implications. All of them have to deal with either income taxes at the personal level or corporate level. Some have to deal with self-employment taxes. Others must deal with 941 taxes. Then there are state and local tax issues, such as the margin tax if you’re in Texas. And don’t forget sales taxes and property taxes either.

One of the strategies that allowed the Internet to cement itself in our society during the 1990’s was this: just let it develop without taxing it. Without that burden, the Internet took off like wildfire.

Ergo, if we’d like a bunch of new small businesses to get going, let’s ease up on the tax burden on new startups. This would cost the government hardly any money at all. Think about it – businesses that don’t yet exist do not pay any taxes. Workers that are not yet employed do not pay any taxes. Currently unemployed workers do not pay income taxes, except for a pittance on unemployment benefits. So allowing new businesses to form and employ workers and transact business “tax-free” for a defined start-up period would produce an EXPLOSION of small business startups.

How long should this tax free period be? Per the SBA, if a new business survives 4 years, they have a great shot at surviving long term. So why not give all new business startups a tax holiday for four years as they establish themselves? Can you imagine how big the tax base would grow as these healthy, strong 4-year- old businesses begin paying taxes?

It seems that the biggest issue facing our new President and his administration is how to pay for all the things they’d like to do. Let me suggest that expanding the tax base is the best way to grow government revenues, as opposed to increasing the rates on the current tax base. Allowing a flood of new businesses to take root and grow our tax base may be the best way to fund our growing public budgets.

Naturally, SoftLayer would be more than happy to assist these new businesses with our enterprise class data center outsourcing services so that the new businesses focus on their business plan – not their IT overhead.

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