Yes, I am aware of that. But I never promised anyone that I would be able to keep and maintain their backups, I stored backups on the server that the clients were on as an extra feature but I haven't listed that service officially, it is down to the clients to keep backups of their files.
And I am aware about the DMCA issue, but I am running a professional business, if it comes between the choice of having a server that constantly suffers from network issues and unhappy clients or a server that requires DMCA notices to be complied with, but has much better support, much more uptime and a much more stable machine, I'm going to choose the latter.
Clients should never soley rely on their hosting company to keep backups, this is a perfect example why, I can't store all the backups on my personal computer and I don't earn no where near enough to buy a server to keep everyone's backups on, even if I did there's a chance that could break also.
Any experienced webmaster who has been in the industry will tell you that you should always backup your own files.
My business doesn't and will not revolve around shady grey areas of the law, as some people are already aware, I have removed all relations to HiloHost and "warez-linking".
I believe my clients can upload whatever material they want but if I receive a notice saying the server will be shut down or the client has to remove x content, I'm going to get the client to remove x content.
I'm a serious host, I don't plan on doing hosting for a few months, I plan on doing it for years, and then some more years after that, hiccups will happen down the road, no long-term host will say they have never received issues like hardware malfunctions, DDoS attacks, Malicious code injects etc.
Of course I do not want HiloHost down, but for me to expect HiloHost to be running 100% perfect everyday for the next 10 years, would be idiotic and it would make me a very poor server administrator.
Also by moving to a different data center I would also be able to reduce the cost of hosting again, as my number 1 priority in the hosting business is customer satisfaction, albeit, it might not be that great at the exact point in time, but I will remain here, I will carry on doing hosting, clients will leave, clients will join, people will like the company, others won't.