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The Last Big Reveal

2011 has been the year of revelations from InstallAware’s “secret history”. From Viresh’s behind-the-scenes puppet mastering of InstallAware to the CodeProject scandal, I have revealed many a secret this year. What better way then, than to end the year with yet another big reveal?

 

Cautious Optimism over the Fate of Delphi

 

Our story this time starts in 2006, when Borland spun off their IDE businesses into a newly formed CodeGear unit back in 2006.

At that time, many of us were cautiously optimistic, hoping that this new formation would help improve the fortunes of this magnificent product. As you may know, InstallAware itself is authored in Delphi – so we certainly wanted nothing other than the greatest of success for the compiler that our business is based on.

 

The Best Working Month of My Life was at CodeGear

 

A most happy development for InstallAware at this time was the adoption of InstallAware – over InstallShield – for the first-ever CodeGear branded release of Delphi. CodeGear replaced both the setup program they were bundling with Delphi, and the setup program that installed Delphi itself: InstallShield was out, InstallAware was in.

As part of this transition, I worked personally out of Scotts Valley for about a month, shoulder-to-shoulder with the people who had become my legends over the years, helping them build their new setup program using InstallAware.

I relished taking in all of the Borland history, sitting in David I’s office, looking at product boxes over a decade old but still in their shrink-wrap. I relished having the opportunity to listen to Allen Bauer’s stories of how he was tasked with working on Borland’s first-ever 32 bit DOS compilers, when the project was canned in favor of Delphi. Here were, and still are, my heroes. Working together with them was truly the best working month I have ever had in my life.

Here were found the pioneers of modern software – the true heroes of the computing revolution, those who may not have profited from it as much as other companies like, say Microsoft – but those who by all indicators worked to indeed better computer science (as opposed to profit).

 

Embarcadero’s Successful Acquisition of CodeGear

 

A little while down the road, Embarcadero acquired CodeGear for a mere fraction of an offer that Borland had apparently refused a few years ago. I retained my cautious optimism that still, everything would be in the best interests of Delphi.

To be sure, Embarcadero sounded like far less of an interesting brand name than CodeGear – I did find myself wishing they had kept the separate brand name intact. This is a thought that I also continue to reflect on recent version releases of Delphi. Delphi XE? Delphi XE2? Surely there could have been a better way to name the first multi-platform, 64-bit release of Delphi than “XE2”, where the meaning of “XE” itself is in question.

And while we never renewed the software bundling agreement we had signed as Borland and InstallAware, since to all intents and purposes everything was the same, the bundling of InstallAware with Delphi continued as-is.

 

Embarcadero’s Failed Acquisition of InstallAware

 

In 2009, InstallAware and Embarcadero entered into negotiations to acquire InstallAware. I thought so highly of my heroes, that I could not conceive of any ill coming through any of this. I openly shared all kinds of InstallAware trade secrets with Embarcadero – including the full source codes of InstallAware’s then-upcoming application virtualization product, ThinAware.

In hindsight, maybe this wasn’t the best decision of all. It turns out Embarcadero was owned by the same investment group that also owned InstallShield at the time. Needless to say, InstallShield is InstallAware’s primary competitor, and I find myself wondering whether any InstallAware trade secrets made their way back to InstallShield. InstallShield have recently cloned three previously unique InstallAware features…

Leaving speculation aside, Embarcadero’s offer for InstallAware was underwhelming. Written up on corporate letterhead, using rich verbiage such as “an all cash payment made in a single installment,” their actual valuation of InstallAware came out to only 25% of CodeProject’s valuation, where both were made in the same time frame. This was quite a shock, so much so that I asked Holden Spaht, the head-honcho at Embarcadero, to provide me with a written offer when I first heard of it: it just had to be a problem with the connection or my hearing. But needless to say, value lies in the eye of the beholder.

Of course, the acquisition failed. I chalked it all up to experience. Even though it was very unsettling that Embarcadero had valued InstallAware at only a meager fraction of CodeProject, it was their value to assign. They had done the same thing with Delphi too, after all.

 

Declining Optimism

 

Over the years, my cautious optimism about the eventual fate of Delphi began to decline. Product naming conventions aside, it seemed to me that the momentum Delphi had gained under CodeGear was bleeding off at Embarcadero. Moreover, my contacts at Embarcadero seemed less and less happy over time.

I know their dedicated installation engineer was let go, which certainly didn’t help the state of the InstallAware setup for Delphi I had originally built a few years ago. I noticed the installer gradually atrophy – of course, it was quite sad that InstallAware got all the blame for this; since no one could know that Embarcadero hadn’t even assigned a dedicated installation engineer to what might be considered one of their flagship products.

It also came as a big surprise that the partner serial keys, issued to vendors actively supporting Delphi with components and utilities such as InstallAware itself, were made to expire after only one year under the Embarcadero regime. These were perpetual during the Borland/CodeGear times.

We didn’t have much to be concerned about this at InstallAware, because our product was (and still is) being built using a CodeGear branded version of Delphi that had a non-expiring serial key. However, this level of growing stinginess was unsettling, to say the least.

 

Escalating Concerns

 

InstallAware was almost hit by a frivolous patent troll lawsuit in 2010. The summary of the allegations was that InstallAware’s ability to create password protected setups infringed on prior art.

While InstallAware wasn’t directly targeted by the patent trolls, MicroFocus – who had recently acquired Borland – were the active targets of the patent trolls. And MicroFocus threatened to come after InstallAware because, in their opinion, the expired bundling agreement between Borland and InstallAware made us liable.

InstallAware turned to Embarcadero for help, since they were our active partners in the bundling. Embarcadero did nothing to aid InstallAware in this potential lawsuit. InstallAware had to absorb the cost of the legal defense all on its own.

I was definitely unsettled with the ease in which Embarcadero disowned the entire relationship given the threat of the lawsuit – “it’s a hot potato, we’ll throw it right back” was the exact remark of one Embarcadero employee. But again giving Embarcadero the benefit of the doubt, I let this one slide as well.

 

A Very Stingy Owner for Delphi

 

While I could chalk everything up so far to this or that, inventing some excuse or the other for the benefit of Embarcadero, in 2011 things started to truly get out of hand.

In 2011, InstallAware decided to – for the first time since 2007 – acquire non-expiring licenses for an Embarcadero branded Delphi.

And InstallAware failed to do so.

Now just to put things in perspective: back in 2004, when InstallAware wasn’t even an Integrated Partner, Borland had sent us full product boxes of all requested Borland IDE products, at their expense, and very promptly, just for the asking.

In 2011, it took us about two months of emails back and forth to squeeze a non-expiring license out of Embarcadero. And when they did issue the license, it was the wrong edition, valid for a single user, and with just three activations permitted.

And we haven’t been able to get them to issue the correct product edition license ever since!

All the while, of course, Embarcadero continue to use the latest versions of InstallAware to build their setups – without paying us a dime for it.

Again, putting this all in perspective – while InstallAware was nothing to Borland in 2004, they went out of their way to support us. In 2011, Embarcadero uses InstallAware for their installations and bundles our product (making us an Integrated Partner), and while one might expect at least the same level of courtesy that we were shown by Borland in 2004, if not more; what we have ended up with is something significantly worse.

 

Embarcadero Lies Shamelessly

 

Keep in mind that all this while, Embarcadero hadn’t even bothered to renew the expired software bundling agreement between Borland and InstallAware (one that they were all too quick to disown in the first sign of trouble, as was the case with the patent trolls).

All the same, InstallAware continued supporting Embarcadero out of good faith. We even issued an updated version of InstallAware to Embarcadero for their bundling in 2011, on the condition that we could issue further updates to the bundle version as necessary.

However, when we did try to issue another update, Embarcadero shocked us with nothing other than a shameless lie: they claimed they did not issue inline updates for Delphi at all, something which we knew to be factually false given our working relationship!

When I personally escalated the matter to Wayne Williams, the Embarcadero CEO, instead of owning up to this shameless lie, he threatened InstallAware with legal action – over an expired contract at that, and again, one which they had disowned a little over a year ago.

 

A Stingy Embarcadero Takes Liberties with Third Party Intellectual Property

 

The latest we have heard from Embarcadero’s lawyers is that they intend to forcefully bundle all current and future versions of InstallAware with their Delphi releases, regardless of our consent. They have made this absurd claim which sounds like InstallAware at some point entered into indentured service with Embarcadero, for life.

Their current bundling of InstallAware is without our consent.

Moreover, Embarcadero are refusing to pay us for the copies of InstallAware they use to build their own installers, while simultaneously refusing to issue InstallAware with non-expiring licenses of their products.

This means that Embarcadero are not only distributing unlicensed copies of InstallAware with their products; they are also using unlicensed copies of InstallAware to build the installers for their products.

 

What Are You Doing, Embarcadero?

 

At best, Embarcadero is engaging in willful abuse of InstallAware.

At worst…connect the dots above! From a hostile purchase offer that suggests Embarcadero never intended to buy us, to stealing the source codes of ThinAware, the sky seems to be the limit.

 

How Should InstallAware Respond?

 

For now, we’ve stopped hosting web media blocks on the bundled version of InstallAware. Even by the terms of the expired license agreement, we are under no obligation to do so. If you are affected by this issue, contact Embarcadero and ask them to provide you with a download URL for the single file build of the bundled version of InstallAware.

We also declined to activate the bundled version of InstallAware over a 24-hour period, hoping that Embarcadero gets the message:

We will not tolerate Embarcadero’s abuse of InstallAware. Embarcadero have abused our good will and our concern for the well-being of the Delphi eco-system for far too long.

We continue to explore legal and other options to protect our interests in this matter.

While we will do our best to ensure our mutual customers are not affected by this dispute, we may need to decline activations on the bundled version of InstallAware based on how things move forward with Embarcadero.

If you are affected by any of this, please feel free to contact your Embarcadero representative directly.

And last but not least – what would you do if you were in our shoes? Please don’t hesitate to share your thoughts, as always.

24 Responses to “The Last Big Reveal”

  1. Lex Li Says:

    I still found my old review on InstallAware and InstallShield listed under one page of InstallAware web site, which always reminded me of the sweetness I got from InstallAware years ago. Therefore, every time I hear that Delphi **** installer sucks, I always wonder what happens. Thank you for clarifying that. I fully understand how you feel at this moment, and wish that Embarcadero can treat InstallAware fairly soon before it is too late.

  2. Peter Hamilton-Scott Says:

    That’s the price of success, I’m afraid. We’ve seen it with Microsoft, Apple and others. Competition is healthy and vital if the products involved are to be better; software leapfrog by another name. What Embarcadero have done is to take a brisk run down a slope they will never climb back up. Once you have replaced integrity with dishonesty you are tainted for life. I read somewhere that the definition of honour is that which you give yourself and which nobody else can take away. Between the words only you can give it and only you can lose it. Embarcadero have clearly lost it. What I do wonder is at what price IA will be sold to someone? I think that was in the under-current at CodeProject and it seems to be there in the dealings with CodeGear and Embarcadero. It’s right to look at deals. We’ve seen it with Borland but that was perhaps because they had to. Does IA need to be sold? I don’t think so. For sure, selling it is the right of the owners and there’s nothing wrong with that. But where it gets sold to is different. The difference between profit orientation and profit motivation is very wide. Embarcadero saw it from the perspective of profit motivation first, IP second. Both are necessary in the case of IA. It’s too good. It’s too successful. I’m optimistic that the board of IA will see things different from this time and will have the savvy to see between the lines and to smell the fox before it’s seen again.

    I read a story on a news website some months ago. It was about a woman whose child was injured in a car accident. The owner of the car was a wealthy business woman. The police naturally attended the incident and later the concerted weight of the car driver’s legal counsel bore down on the injured child’s mother. It was her fault so they claimed. Through simple attrition they started to grind her down. The mother pleaded guilty and the driver’s statement was read by proxy. The mother was asked by the magistrate if she understood the implication of her plea and she replied “that she has little money and the driver could crush her financially if she tried to stand against it.” I’m not sure exactly what followed but it seems a passing lawyer interceded for her and sought an adjournment. He referred her to a QC who took up her case for free. Collectively, the battle was fought and the mother won her day in court as the driver’s team opted to avoid more of their own blood-letting and settled privately.

    I’ll let you draw your own conclusion about this sort of metaphor. I’ve always respected IA immensely. The product deserves success. I’m sure Embarcadero are toasting their so-called victory. My final thought on this is what my mum once told me. She said, “always tell the truth, there’s less to remember if you do.”

  3. Paul Says:

    That makes for a painful read, but a company is only responsible to its shareholders and to maximize benefit to them. Of course that duty is interpreted differently by different corporations. Some will seek to exploit every loophole in a contract to maximum immediate benefit, others will play the long game and nurture partners in the belief that doing so is mutually beneficial in the long run.

    “Plan for the worst, hope for the best”…. Draw up the best contracts you can in the first place, they are the ultimate arbitor in these things. Then of course, live your relationship within the terms of those contracts. It’s an easy thing to forget, but in order for corporations to exist, they have been given many of the legal priviliges of individuals. What they can never be given is a soul or a conscience.

    Back when I was a young teenager I had a school friend who was a technology wizard – writing printer drivers for the early Amstrad machines. He was about to enter a contract that stipulated he’d be paid for all copies of software sold on magnetic tape. Even back then I advised he at least added other terminology to cover magnetic disks and any other media used to distribute the software. In the event, he did do that and of course, there never was any software sold on magnetic tape, it was all distrubuted on disc. Whether or not the software company would have honoured the spirit of the original contract we’ll never know, but he duly received all his royalites from the disc media that was sold.

    I do sympathize with your position, but I’m sure we’ll never get such a personal view of the Embarcadero side of the story as you’ve given here. They’re a corporate body and of course do not have a “personal” view, which is the crux of the matter. I do hope you’ll find a way forward with the relationship though.

  4. Sinan Says:

    One of the major problems with the legal system today is that corporations have the same rights that sentient people do, but very little of the accountability. This has been covered in great detail by writers such as Naomi Klein (No Logo, etc.), so I won’t rehash it here.

    As President Clinton recently said, “The American Dream has been under assault for 30 years.” It’s easy to see why – when honest, hard-working people, who take all the risks for the sake of delivering genuine innovation, are repeatedly abused and assaulted by non-sentient entities who are unaccountable and disproportionately advantaged in the legal system…how could one expect the dream to survive?

    Embarcadero have demonstrated bad faith towards InstallAware, even if we bend over backwards to give them the benefit of the doubt. At the end of the day, all we can hope is that by bringing this issue to light, we have given them reason to change.

  5. Curly Says:

    This software patent ( troll ) problems forces software companies to behave the way that they first have to look for their own healthyness. This is pure logic if you see what amounts of money is involved in penalties for software patent infringements.

    This is less the guilt of the tech-companies then that of a leagal juristic system that sets itself on top of all tech innovation to press money out of it. Also trying to do in Europe, where software patents actual are not allowed, but legal firms and lobbying groups try to establish this, see ffii dot org

    As long as the tech world is willing to conform with this game and is willing to deliver inbelievable wealth to law firms etc, nothing will change.

    A german juristic professor, living in Japan, did a analysis about the benefits of software patents.
    The clear result: they are clearly a detriment for national economies.
    Only useful for special law firms.

    Its time that the tech firms awake.

  6. Michael Thuma Says:

    This is business … get used to it. Get Rid of Delphi Love and face the facts. The real Head Honcho is very likely Adam Smith. See it from this perspective.

    I cannot comment on the matter because I have no background info. One side of the medal is not enough and judgment finally defeats us anyway. Put aside emotions, focus on the essential.

    Maybe it’s tactics. Assuming they don’t prepare a switch to another installer, and because of this don’t invest into the past, the conclusion for me is – tactics. If you have the impression that the offer given to you was a nice and friendly ‘No’ you should rethink if it could have meant ‘and very likely forever’ independent from the agenda.

  7. Sinan Says:

    While I agree with your astute observation on judgement, the relationship here has devolved to the point where we are being forced to take a stand for our IP. I have no expectations at this point other than they drop InstallAware as a bundle and build the Delphi install using a licensed installer.

    That’ll preferably be one that is not InstallAware, since their buggy setups are reflecting rather poorly on the InstallAware brand. In 2007 they had to use InstallAware, but now they can go InstallShield since InstallShield has copied some of the unique InstallAware features Delphi needs for enabling their ecommerce.

  8. Michael Thuma Says:

    My original post was longer. I was assuming what you described. Always under the restriction only one side has been heard.

    2 paragraphs … from the original

    The crucial point is – very likely forever? See all what happened since this point in time from this perspective. This would be my intention. Maybe they will switch to their trusts product. This is the third option. Assuming the information given matches the facts. On one hand would strengthen your second conclusion on the other you have nothing to loose in this case but a lot less to win.

    In general I don’t think customers make Installaware responsible for the Delphi installers. Of course the communication to an upper management will be a different one than the reallity is very likely assuming your installer is not the problem.

    I hope you respect that I cannot comment on things I don’t know about in the very detail, in this case I have no idea, but try to figure out a picture. It is a mixture of contracts and situations and this one is already a wired one better said a muddle*). The evolution/escalation of a situation is unpredictable and so managements tend to cut off potential risks. Counts for both sides. Of course you must make sure to be in the position to use the features you invented, indepent if the trust’s preference can make use of. I don’t know in how far this risk is covered already … maybe it is not a valid point but would be a good opportuntiy for a straight hit into the a competitor’s mouth (sorry for the wording but I avoided term balls anyway), at least to keep you busy.

    On one hand I understand a technology trust’s position to control the developments and the rights in order to protect themselves, btw. selling to the own trust is also good business, left pocket right pocket but excluding real third-party spendings. This is understandable. But treating you as a partner this way is not acceptable. It is not for Delphi, Delphi is not your fight. InstallAware is your fight.

    *) In this case the divorce is usually the better option. In business it happens that partners realize that they simply don’t fit together. Wondering what you will do, switch the development environment?

    The Delphi + EMB discussion is an interesting one in general, but honestly, I am also doing hard to take the measure of EMB. It is not this important if and when specific features work, at least not to me, but the quality of the hand shake at every level must go beyond a High Five in their sales department.

  9. Delphi Haters' Blog Says:

    Hi Sinan, you are not the only person shafted by them.
    http://delphihaters.blogspot.com/2012/01/installaware-trouble-in-delphi-paradise.html

  10. David vs Goliath (Embarcadero vs InstallAware) | Andy's Blog Says:

    [...] recently come across this blog post on the InstallAware blog; detailing a current legal spat that has developed (or is developing) between these two companies – and I have to say, I am [...]

  11. Sinan Says:

    I’d also like to take a moment to respond to the following post:

    https://forums.embarcadero.com/thread.jspa?threadID=66999

    which is linked to from:

    http://delphihaters.blogspot.com/2012/01/installaware-trouble-in-delphi-paradise.html

    First, it seems InstallAware owes an apology to Igor Pavlov. While we are indeed within our legal rights to use the 7-Zip source code, InstallAware has certainly failed to credit him for enabling our superb compression engine. Back in 2004, InstallAware was the first and only 7-Zip based installer. Now everybody’s doing it – even InstallShield – but it sure helped us make a difference back then.

    For the record, Igor and I were in correspondence even before InstallAware ever existed. I have had an interest in data compression for a couple decades by now; maybe he wouldn’t remember me from back then, but I still have our emails and of course could not ever forget his accomplishments in the compression field. To the best of my knowledge, 7-Zip still is the best compression algorithm out there.

    So Igor if you ever get to read this, I hope you would accept InstallAware’s official apology for having failed to explicitly credit your inventions that have been empowering our product from day one!

    Next, I would like to respond to the comments raised on pricing – where some people suggested that I may have an over-inflated sense of what InstallAware is worth (naturally, as any founder might). However, they have completely missed an objective metric of comparison – the offer that CodeProject made in the same time frame for InstallAware, which valued InstallAware at exactly FOUR (4) times Embarcadero’s offer. In other words, if they’re really out to get you, you’re not paranoid :)

    Last but not least – our firm stand against this abuse remains unchanged, even though it may cause material harm to InstallAware. We are not looking to profit or benefit in any way from this dispute, which should be a key indicator that we are not here to make more money but we are here to stand for what is the truth. Lies and and concealment may serve business interests – isn’t this what Embarcadero’s professionalism amounts to? But I believe those may not be one’s best interests at the end of the day.

    You will always get the truth from InstallAware, even if it is shocking; and you will always know where you stand with us – for only the truth survives.

  12. DHR Says:

    Hi Mr. Sinan,

    Our correspondents and foreign correspondents in DHR blog did some fact-finding and discovered, if there was paid-royalties, it is estimated that within Delphi XE, Delphi XE2 (upto update4) era, InstallAware would have collected at least an estimated $1.5 million to $6 million* total.

    The $6million is an estimated revenue amount, if Embarcadero received double digit growth according to their PR release http://edn.embarcadero.com/article/41532 .

    If InstallAware did not collect any money, you can see how stingy company Embarcadero is. Just the royalties on InstallAware would make-up for the 75% reduced valuation.

    In latest version of Delphi XE3, InstallAware is not included in Delphi XE3 bundle. They recently dropped the ball on iOS support (it will be a beta in XE3 and hived-off as Mobile Studio to be seperate product), they were so stingy that they want unpaid marketing and sales people to provide marketing support for Delphi instead of getting good marketing team to do PR, trainings and promote Delphi and C++ Builder.

    Delphi Evangelism (see the part about InstallAware)
    http://delphihaters.blogspot.com/2012/08/delphi-evangelism.html

    One wonders what exactly Delphi developers are paying for, since there is always annual upgrades and few (or little benefits) in the new version of Delphi… People are not being paid well and Embarcadero always wants free work.

    Embarcadero AppWave is based on GPL technology – Magneto Commerce. Good luck with keeping that a secret since they engage in systemic wilful IP abuse.

    What are we paying for?
    http://delphihaters.blogspot.com/2012/08/delphi-what-are-we-paying-for-corruption.html

  13. Sinan Says:

    Last I checked they were still using InstallAware to install the Delphi XE3 product family.

    An unpaid copy of InstallAware!

    And they’re still not providing InstallAware with a copy of their most recent compilers.

    They’ve again ignored my efforts at communication.

    It’s probably time to make some noise about this! Maybe that’s why they left the BSA – their own piracy :)

  14. Sinan Says:

    I just checked the final version of RAD Studio XE3.

    Still using InstallAware to install :)

    No further comment…

  15. DelphiHater NY Says:

    Mr. Sinan,

    Take look at this unfair contract. They (Nevrona Designs) collected over a decade, almost US$1.5 million. But people buying Nevrona Reports had to buy add-ons (e.g., Gnostice eDocEngine Add-on, Llion for correct PDF report). It does not work with Web, so you have to get something else. Even their Nevrona team members abandoned them.

    http://delphihaters.blogspot.co.uk/2012/09/smells-like-team-spirit-nevrona-two.html

    AToZed collected almost over 10 years, US$3 million. Not bad for a company whose product is used by 0% of the whole web.

    (Please note, if you want to take legal action against Emb. you will have to do your own research to validate our claims.)

    In other words, parent company of Embarcadero wants InstallAware technology for improving InstallShield, but they don’t want to pay for it.

  16. DelphiHater NY Says:

    Mr. Sinan,

    http://delphihaters.blogspot.com/2013/05/embarcaderos-compiler-business-for-sale.html

    They lost over US$45 million over AppWave trying to make an InstallAware clone.

  17. Lauren Goodson Says:

    Thank you very much for this imformative blog post.

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