Feedback from Community - Before we Launch a Hosted Mining Service

[seocrow]

Good afternoon all,

Today I would like to gauge some feedback. Currently we are close to launching a new Hosted Mining Service to the Litecoin Community (also can be for other Alt coins). I wanted to get some feedback first to make sure our business is suitable. We will also change our business model depending on feedback.

Here is our proposed Business:

We will offer 3 Services:

1) Customer has option to pay a fixed price for hardware. We provide the specification depending on amount of kh/s they require. We will then build rig, install software and host the rig securely in Scotland UK at a fixed monthly cost. This charge will cover all costs, electricity, cooling, internet. You will get access via ssh to monitor and web monitoring. All Litecoins will go to your wallet. Server will be unmanaged. After a year contract you will be welcome to collect the rig or to have rig shipped to you (if you pay courier costs).

2) Customer will send us their Rig. They will then pay a fixed cost to host their rig unmanaged. Customer pays a monthly charge for hosting rig. This charge covers all costs, electricity etc. Customer can access rig via ssh. All Litecoins will go to your wallet. After a year contract you will be welcome to collect the rig or to have rig shipped back to them (if you pay courier costs).

3) Customer will just pay a fixed monthly fee for a specific number of kh/s using one of our own Mining Rigs as a Hosted Service. We will host the rig and allow access via ssh, web monitoring.  This monthly charge will include all costs - Internet, Power, Cooling, Electricity. All Litecoins will go to your wallet.


I would appreciate some feedback from the community to confirm which server would interest you. We also have potential for a 2nd Hosting Centre in the United States for our US customers. This will reduce latency for those who want to connect to US based pools.


SOME MORE DETAILS AROUND COSTS AND THE HOSTING CENTRE:

Fees are currently estimated in U.K as follows. (For U.S based servers this would be cheaper as power costs are cheaper in the U.S.). We will have U.S figures soon.

Build and Install Service for a Rig - Bronze - 600 kh/s rig  - £900
                                                       Silver    - 1200 kh/s rig - £1165
                                                       Gold     -  2400 kh/s rig - £1675

For customers taking the Build service they would pay hosting costs below:

Hosting Service - £65 per HD7950 card per month -
So £65 per month for around 600kh/s,
     £110 per month for 1,200 kh/s
     £200 per month for 2,400 kh/s


Hosting Only Service would be higher ( as we would have to cover hardware costs to build rig ):

£90 per month for around 600kh/s,
£160 per month for 1,200 kh/s
£270 per month for 2,400 kh/s

These figures may change.

2. The building is secure with onsite presence with security alarm and contents insurance. 2 Operators will be on site. Customers will be allowed to visit by appointment

3. The termination after a year is only by client request for example if they want to sell the hardware. If customer takes option one and pays for all the hardware components then they own the equipment.

4. Unmanaged Service - This would mean we do not constantly look at the server or monitor it. Customer is responsible for calling or emailing us if their server has gone down or needs reboot etc. We have operators on site to reboot servers. This would be included in the price. We would also be willing to investigate issues or resolve software faults caused by the client for a small fee.

5. We would guarantee uptime. We would aim to provide at least 99% uptime. If we dropped below the agreed level then we would provide a proportionate discount for the following months rental.



Look forward to hearing some feedback folks before the launch date.

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[philr13]

Hi I feel that although interesting i feel that this kind of mining equipment will become worthless very soon condisdering the Avalon ASICS are not far away from hitting the market that will wipe out gpu mining and The next development will be A scrypt based ASIC.

[Kruncha]

Hi I feel that although interesting i feel that this kind of mining equipment will become worthless very soon condisdering the Avalon ASICS are not far away from hitting the market that will wipe out gpu mining and The next development will be A scrypt based ASIC.

This is the altcoin forum, so ASIC is not relevant.

K.

[philr13]

Please accept my apologies did not know it was alt coin although my comment is relavant to the subject.

[xan_The_Dragon]

i like the idea, although i do not have the money to buy

[xan_The_Dragon]

Hi I feel that although interesting i feel that this kind of mining equipment will become worthless very soon condisdering the Avalon ASICS are not far away from hitting the market that will wipe out gpu mining and The next development will be A scrypt based ASIC.

This is the altcoin forum, so ASIC is not relevant.

K.

altcoins ARE relevant, sha coins are all able to be asic-ed (PPC, trc, BTE, FRC)
and MErged mine coins are very relavent IXC IOC GG DEVCOIN NAMECOIN

[spoid]

i fear that, since you're hosting it in GB, your electricity costs seem to not be competitive enough - 200 pounds a month for the 2400 kh/s is a lot of money.

[Tobius]

Hi I feel that although interesting i feel that this kind of mining equipment will become worthless very soon condisdering the Avalon ASICS are not far away from hitting the market that will wipe out gpu mining and The next development will be A scrypt based ASIC.

This is the altcoin forum, so ASIC is not relevant.

K.

altcoins ARE relevant, sha coins are all able to be asic-ed (PPC, trc, BTE, FRC)
and MErged mine coins are very relavent IXC IOC GG DEVCOIN NAMECOIN

But not any time soon...

[anderl]

£65 per month for around 600kh/s

If the client was mining LTC they would earn 1 LTC per day at 600kh/s 
That is £1.99 per day or £59.7 per month

So you are effectively going to rob the client of the LTC they earn?!?

Look  I run a data processing center with a number of servers that do mining.  I have people that I distribute a dividend to.  After my operational expenses (electricity, hourly rates, leasing)  I still give them 30% of the net profit.  I don't make them buy hardware or pay for hashes, and I don't make them manage it themselves.  I do it all and I still give them 30%.

Correct me if I'm wrong  but you seem to be fleecing people,

[BrewCrewFan]

£65 per month for around 600kh/s

If the client was mining LTC they would earn 1 LTC per day at 600kh/s 
That is £1.99 per day or £59.7 per month

So you are effectively going to rob the client of the LTC they earn?!?

Look  I run a data processing center with a number of servers that do mining.  I have people that I distribute a dividend to.  After my operational expenses (electricity, hourly rates, leasing)  I still give them 30% of the net profit.  I don't make them buy hardware or pay for hashes, and I don't make them manage it themselves.  I do it all and I still give them 30%.

Correct me if I'm wrong  but you seem to be fleecing people,

I agree also. Sure the intital investment does not pay out right off but in a few months if not a month it could if you jump on the right coin right away.

[destruct]

Your rates are horrid

considering I could buy the hardware myself for the same price in USD as you're charging in Pounds.

Electricity cost with my 7x7950's running 24/7 is only $130/month... interesting concept you want to do but since no one keeps the hardware except you.. the prices should be half.

[GSnak]

Um, mining doesn't pay what you're charging.

[BrewCrewFan]

Your rates are horrid

considering I could buy the hardware myself for the same price in USD as you're charging in Pounds.

Electricity cost with my 7x7950's running 24/7 is only $130/month... interesting concept you want to do but since no one keeps the hardware except you.. the prices should be half.

if that. Your right about the hardware its like renting. You rent an apartment not for the 200K a month that it cost... only a fraction per month like 500 a month.

IMO if I could find someone that would rent out a card and let me have the ability to mine whatever coin whenever I wanted for like 20 a month I would be all over it.

This is a novel idea... just way to fucken expensive

Edit... a good example is for like seedboxes or dedicated servers. Rent server space for hosting web traffic ect.

[Wilderness]

it doesn't feel that the model is quite there with that pricing, but keep working on it.

people need an incentive to use the service over just buying straight coins

[spoid]

hmm, was hoping for a bit more input from op here.

[bitdwarf]

I'd keep an eye on YAC's price, since you could try to get refurbished server hardware for cheap if YAC becomes profitable, then rent it at better rates than Amazon or whoever. Hardware used for mining wouldn't need to be very new nor extremely reliable I guess.

[seocrow]

Thanks for the input guys. So basically you are saying you like the service just the price is too high. The prices werent set in stone.
We will look to see if we can drop the prices. Perhaps we should keep it simple and just offer a hosting service where we buy our own hardware and charge a nominal fee for miners to mine with each card. Or offer a credit system where you can mine with 1 , 2 , 3 or 4 cards for an hourly rate.