Nirvanix shut down raises concerns

As reported by Barb Darrow, “Nirvanix, the cloud storage provider based in San Diego, is about to shut down, according to reports in CRN and  InformationAge report which says customers have been given two weeks to migrate their data elsewhere.”

No way will enterprises be able to move their data off that cloud service in two weeks.  I suspect that many are in a downright panic right now, as their storage service goes bye-bye.  However, this could become a common story as we see more enterprise-oriented cloud services take an unexpected dirt nap.

The reasons for a cloud going away vary.  I suspect these guys just could not make a viable business around the ever-dropping prices of AWS.  Thus, their investors pulled the plug rather than send in more funding to keep this storage service moving.

Those in enterprises that leverage public cloud services for anything should be concerned by this story.  If these guys can go down, other cloud providers that are venture-backed could soon find themselves in the same situation.

Those who purchase these services should pay careful attention to the viability of early-stage cloud companies before they migrate to those providers.  You could find that you’re playing a game of musical chairs, and you’re the one left standing.

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David S. Linthicum

SVP Cloud Technology Partners

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