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The Ultimate Colocation Site: HavenCo

The Ultimate Colocation Site: HavenCo. Avi Freedman <avi@havenco.com> Ryan Lackey <ryan@havenco.com> H2K2 14 July 2002 http://www.havenco.com/. Sealand. Present Status. Profitable .com Cost-conscious No negative legal challenges; working on bigger tests

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The Ultimate Colocation Site: HavenCo

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  1. The Ultimate Colocation Site: HavenCo Avi Freedman <avi@havenco.com> Ryan Lackey <ryan@havenco.com> H2K2 14 July 2002 http://www.havenco.com/

  2. Sealand

  3. Present Status • Profitable .com • Cost-conscious • No negative legal challenges; working on bigger tests • Connectivity redundant and has sufficed but working on fiber • Mainly gaming and payment systems customers • Need businesses to do: • Shared hosting; email; data haven? • Out of the startup phase with steady growth

  4. Why? • Continued trend toward regulation around the world • Specifically, CDA, RIP, DMCA, CALEA, BXA crypto regs • Provide an example to other countries of how minimal regulation can work; hope for imitators

  5. Acceptable Use Policy • No Spam • No Hacking • No Child Pornography

  6. Background - Sealand • Originally constructed 1944 as anti-aircraft fortress • Abandoned by UK in 1945, left unoccupied in international waters • Occupied by Roy Bates, pirate radio broadcaster, in 1966 • Repeatedly challenged and always positively resolved for statehood

  7. Micronation Projects • Some have been successful – Vatican, East Timor, various ex-colonial territories • Many others have been unsuccessful • Sealand is in a unique position; can’t be replicated in today’s international legal environment due to treaties

  8. Sealand’s Statehood • Initial challenges by UK Customs, virtual blockade • Weapons incidents • Social security tax ruling • “German Incident” • De facto recognition by continued existence for decades

  9. Jurisdictional Arbitrage • Countries can compete based on regulation • “Race to the bottom”; good or bad? • Most countries form cartels to avoid competition; specifically for taxes • Precedent with flags of convenience, offshore companies, banking, reinsurance • Not yet widely applied with net, but initially in mid-1990s in Anguilla and elsewhere

  10. Background – Founders • Founders had a common interest in jurisdictionally-advantaged colo, and background in IP networking, hosting, crypto, payment, international startup companies • Initial discussions considered barges offshore from US; artificial structures in Cortez bank in CA; small islands in the Pacific; indian reservations • Discussions took place early 1999-early 2000

  11. Sealand Royal Family & HavenCo • We contacted Michael of Sealand 7/99 • We first visited in 8/99 • Contract signed 2/00 • HavenCo concept was very similar in spirit to early pirate radio • Royal Family of Sealand has been very supportive • Michael is now actively involved at the executive level

  12. Founding • Havenco funding 2/00-6/00 • Plans modified • Established: • redundant connectivity • 24x7xN security + tech • supplies • international network infrastructure • Press coverage was excellent but a bit early (~ 3 months before actual launch)

  13. Business • Have a reasonable but not extremely diverse set of customers currently • Hosting prices are $750/mo for minimal Netra, 128k of bandwidth. Not more than the con artists “secure vault” charged for “secure colo” during the peak of the bubble • Continued moderate growth • Focused on current site • Open to partners for bandwidth, distribution, product partnership, legal challenges

  14. Why haven’t you been shut down? • UK doesn’t want direct legal challenge which might enhance Sealand’s sovereignty • No one willing to pay to host really controversial content • “We’re just a colo provider” • Free speech ultimately a good PR move in western world • Really bad customers just use stolen CC’s in US virtual hosting, or in-house

  15. Network Equipment Room

  16. Current Technology • Commodity gear • Standard 100bt layer 2 infrastructure • BGP/OSPF routing • Crypto tunnels • Servers: PC, Sun • OS: Prefer Unix, many customers on windows • Towards auto-provisioning • Hot-spares online and on-site • Currently, remote console + power cycle • Full low-bandwidth remote OOB management

  17. Living on Sealand • Spartan • Small on-site staff • Fast net connection, no personal expenses • Nice views • Not much money has been spent on accomodations; trailer-park level of furnishing • Most staff spend 1 week on, 1 week off

  18. NOC

  19. 22.5’ Rigid Inflatable Boat

  20. Difficulties • Remote location means on-site spares key • General market conditions; customers ok, we’re ok, vendors go bankrupt • Not many people have management experience with this kind of venture • Dealing with press is time-intensive

  21. Future Plans • Current plans are to grow current site, generating profit with growth • Potential exists in the future for additional sites and/or services, but reality suggests that radical new projects will be separate ventures or partnerships

  22. How the community can help • Keep fighting legal battles elsewhere for information freedom • Better open-source security software and operating systems; improve technical security • Anonymity and privacy protection for communications, payments, and system management • Referrals of customers

  23. Q &A

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