Brand SA paid over R97,000 per month for web hosting which really cost R2,495 – CEO

phaktza

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Jun 29, 2008
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  • Server Administration Hosted with Hertzner - so there is none
  • Security This should be standard on any site!
  • Technical SEO upkeep How many hours can SEO really be after inital setup?
  • Framework updates and modifications This is Wordpress - it updates itself!
  • Technical maintenance Again, there is none
I call BS - this is not more than a few hours maximum, a month.
 

garp

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Aug 2, 2004
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The fault equally lies with whoever agreed to pay this as they obviously had no grasp of what's involved with hosting or what the costs should be. It looks like they certainly took advantage of ignorance to push up their billing.

Having said that, though, there are websites that can easily cost something approaching that kind of money (although that clearly wasn't the case here). Consider a large corporate online presence that requires a team of full time staff to run - multiply out 3 or 4 market competitive salaries, add other costs and you can easily see how it can add up. Which is why these kind of horror stories make life harder for companies that do legitimate work - suddenly your corporate client who's entire online presence you manage, encompassing dozens of sub-domains, back office systems, api's and databases, constant content updates, SOE etc, are demanding to know why you're charging more than R2495 per month. *Sigh*
 

i.got~issues

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" Carte Balance " ??

Carte Balance recently showed that Brand SA was charged R97,459 per month for hosting 3 websites – brandsouthafrica.com, globalsouthafricans.com, and brandacademy.com.
 

gamer16

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The employee (Assuming Management) who signed off on this should be held accountable, probably didn't ask to see competing pricing from other providers, maybe a dash of corruption as well.
 

Sodan

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  • Server Administration Hosted with Hertzner - so there is none
  • Security This should be standard on any site!
  • Technical SEO upkeep How many hours can SEO really be after inital setup?
  • Framework updates and modifications This is Wordpress - it updates itself!
  • Technical maintenance Again, there is none
I call BS - this is not more than a few hours maximum, a month.
Absolutely. Also, the invoice has line items:
  • Website Hosting - Additional Data brandsouthafrica.com@155,511.47 39 127.87
  • Excess Web Traffic brandsouthafrica.com@605,462.51 36 387.75

How do they explain these charges??
 

j4ck455

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Avatar said:
“It was inaccurate to compare the two costs as they are not the same thing,” Avatar said.

“The forensic report also detail that once they appointed Hetzner, they also appointed a second service provider for technical maintenance, but Carte Blanche did not factor those fees in the hosting fee comparison.”
What a load of BS that is.

If Avatar's statement was even vaguely true, the additional charges should have been made known to the client up front instead of being fraudulently billed as "additional data" and "excess usage".
 

capetownwatches

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Jul 4, 2018
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Avatar clearly saw the gap since it was dealing with either ignorant or corrupt individuals within BrandSA.
It's a disgrace and I hope somebody follows this through.
 

Bryn

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Oct 29, 2010
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Absolutely. Also, the invoice has line items:
  • Website Hosting - Additional Data brandsouthafrica.com@155,511.47 39 127.87
  • Excess Web Traffic brandsouthafrica.com@605,462.51 36 387.75

How do they explain these charges??
Maybe the email was hosted through Hetzner but the websites were running on a cellphone with out of bundle Vodacom data charges?
 

garp

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Aug 2, 2004
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Maybe the email was hosted through Hetzner but the websites were running on a cellphone with out of bundle Vodacom data charges?
The thing is, on a Hetzner Truserv Commerce dedicated server you get 6TB of traffic free, and on their web hosting package traffic is unlimited. So it looks like the company was applying their own rate to traffic, which is questionable, but if they contractually negotiated a traffic rate per GB with the client then I guess they can argue that who they in turn use as an upstream provider and what their rates are is irrelevant.
 

jeevadotnet

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Nov 8, 2018
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You can get a dedicated physical tin (cpu, memory, ssd/hdd), anti-DDoS Traffic, unlimited traffic, backups for like $5pm with kimsufi (part of OVH)
 

garp

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Aug 2, 2004
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Why is a marketing company doing webhosting?
Quite common these days. It's the "digital" part of "full-service marketing agency with digital at the core". Many ad agencies also have an internal web division.
 

konfab

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Jun 23, 2008
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ubercal

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Dec 5, 2005
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Wonder why the IT department for Brand SA werent envolved.Surely they have an IT Manager or CTO who overseas the entire IT environment
 
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