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Summary:

A Nirvanix shutdown could be the beginning of a shakeout among cloud storage providers.

cloud storage

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.

I’ve reached out for comment and will update this story as needed, but reaction is rather blase. Cloud storage, after all, has been a free for all with dozens of startups entering the fray to win corporate customers even as established giants — Google, Microsoft, and others — are carving out their piece of the pie. (We’ll talk more about that at Structure:Europe, kicking off in minutes.)

The six-year-old company has raised more than $70 million in venture capital funding to date, including a $25 million Series C round last May led by Khosla Ventures. Other Nirvanix backers include Valhalla Partners, Intel Capital, Mission Ventures and Windward Ventures.

Andres Rodriguez, CEO of Nasuni, an enterprise storage management company, said this is a wake up call to customers everywhere. “This news shows that, unless you do your homework, cloud storage can still be a scary place,” he said.

  1. Unsurprising.

    Started as Streamload, changed name to Mediamax. Lost tons of user data. Changed name to The Linkup. Then rats from that sinking ship became Nirvanix (all the while trying to deny their they were the same company, including same employees/office space).

    They seem to take all the customer/investor money they can, and just rebrand themselves as a new company later.

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  2. Well, no one has really presented any information as to why Nirvanix is shuttering their storage service. Maybe they just burned through their funding and didn’t have a sustainable revenue model. Maybe they did as the previous poster suggested, which certainly makes for an interesting back story. Let’s see if someone can get to the bottom of this.

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    1. Still waiting for a response from Nirvanix. will update when/if one is forthcoming. thanks

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  3. Ian Moyse ☁☁ Friday, September 20, 2013

    Cloud like any market will have winners and losers and customers need to do diligence on their provider which should include off boarding meaning how easy is it to get your data back in a usable format and move elsewhere should you choose or need, Good cloud providers will make this easy and are open and up front about their provision for this,. Cloud is a long term play as a provider , not a quick buck market and unless you differentiate the customer value you deliver you can rapidly become marginalised and commoditised. The issue in this case is the lack of time allowed to their customers to take the required action due to not provisioning contingency into their own business models ahead of time. Cloud in the majority is a highly positive outcome for the customer, their will be exceptions like this along the journey of cloud evolution as there was in the product world.

    Ian Moyse
    Workbooks

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