I expect they did something to their DNS to break it. The test setup that they use probably has the same entry in its hosts file (which is why it worked for them) and they just don't know it.
if
nslookup logiterm
does not get the right IP address when connected then it their DNS server which is to blame. The good thing about using a hosts file entry is that it is a few milliseconds quicker than using DNS. The bad thing is that if they ever change the address of the logiterm server then you will need to change it in the hosts file.
Ron