LeeWare Going Under

I received this in my email...
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From Lee Evans <lee@leeware.com>
Sent Sunday, August 5, 2007 8:37 pm
To admin@leeware.com
Cc
Bcc
Subject LeeWare Development UVM Service Going Dark on 08/15/2007

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YOU HAVE UNTIL 08/15/2007 TO BACKUP YOUR STUFF AND FIND ANOTHER PROVIDER
I APOLOGIZE IN ADVANCE FOR THE HARDSHIP THIS ANNOUNCEMENT HAS CAUSED YOU.
IF YOU HAVE A SUBSCRIPTION THAT EXTENDS BEYOND 08/15/2007 I CAN REFUND
YOU THE UNUSED DAYS. CUSTOMERS ON THE TZ SERIES OF VMS YOUR SERVICE WILL
CONTINUE AND YOU CAN IGNORE THIS NOTICE FOR CUSTOMERS NEEDING MORE TIME,
THE SERVERS CAN REMAIN CONNECTED UNTIL 08/19/2007 BUT NO LATER, AS I HAVE
TO MAKE ARRANGEMENTS TO HAVE THE SYSTEM REMOVED FROM THE DATACENTER
AND THAT COULD TAKE SEVERAL DAYS.
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After careful consideration and analysis I have decided to discontinue LeeWare
Development UVM Service. The Service is debt free. However, as the owner and
operator of this service it has been a lost investment. While I can
technically continue the service, I think that it is best If I cut my losses
sooner than later. There have been many successes and also some
failures.

In terms of success, I came to the VM market about 2 years late, built and
name for myself and established a niche product offering. I completely
capitalized on the good-value-for-the money aspect VM service hosting. I
invested heavily in this area and established business relationships that
while risky, were the right ones for my particular service offerings. I
saw continued growth through every quarter of each year I've been operating
the service. There are many other successes however, those are not as
important as the failures.

Let's cover some of the failures, the objective of any investment is to make a
return on that investment there are several ways to accomplish this, there
are also serveral risks associated with particular types of investments which
result in negative returns.

While I was aware of risk associated with each factor, I failed to appreciate
the costs associated with correcting what turned out to be bad decisions with
obvious consequences.

The primary failures are:

1. Failure to establish contractual relationships with vendors so that the
costs of service could be fixed for predetermined lengths of time.

2. Investing heavily in a large infrastructure with little or no control of
the auxiliary costs of the service infrastructure. (See #1)

3. Building and maintaining too much capacity for long periods of times before
I had the business to support the infrastructure so that I could get volume
pricing. The business eventually came, I had 200% growth in the first
quarter of this year. Which required additional expansion and capital
investment.

4. The decision not to pass increased costs onto existing subscribers and
carry them at a loss for long periods of time.

5. Failing to react in a timely manner to developments which threatened the
long-term viability of the service. (See #1-4)

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