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Summary:

After two weeks of public silence, Nirvanix confirms what it had already told its customers: it’s shutting down.

Two weeks after reports surfaced that Nirvanix was closing its cloud storage business, the company has broken it’s silence and acknowledged that it is, in fact, shutting down. The news was posted Friday night to the company’s web site,  which was otherwise been wiped clean, (see the screen grab below.)

Customers were referred to IBM SoftLayer — a Nirvanix partner.  IBM had already told GigaOM it was working to transition customers over. Meanwhile, nearly every other cloud player in the universe has been circling to scoop up Nirvanix customers.

Earlier this week, Leo Leung, VP of marketing of Oxygen Cloud, a cloud broker service, said Oxygen had successfully migrated several joint customers to other cloud providers. One was a real estate company with several terabytes of data. (He wrote about the issue on his blog.)

Rackspace offered Nirvanix refugees free data migration to Rackspace Cloud Files, along with a month of free storage (well up to $1,500 anyway.) HP and Panzura also did some customer migrations.

Some said customers would be crazy to trust their data post-Nirvanix to anyone but the biggest cloud storage providers. To Andres Rodriguez, CEO of Nasuni, a company that manages enterprise cloud storage, that means Amazon S3 and Microsoft Windows Azure.

What concerned Nirvanix customers — and spooked others — is that the company gave so little notice, initially just two weeks, to move their stuff. In Friday’s statement Nirvanix extended that another two weeks till October 15.  Still, that’s not a lot of time to provision and move a lot of data storage.

It also put the scare into people that other cloud startups that appear to be well funded may not be all that solid after all. Nirvanix  itself had raised about $70 million in venture funding including a $25 million round just six months ago.

It makes you wonder what other cloud companies are on the cusp.

nirvanixdoa

  1. So $70 million just went down the drain, and lots of customers got screwed up. I am not familiar with Nirvanix, but the cloud storage industry has been too hot supported by so much VC money. Many companies will fail. Which companies will fail has little to do with the company size or amount of funding, it is dependent on if the company has high quality products and if it has a profitable business model.

    7 or 8 years ago, we chose DriveHQ for FTP hosting and online storage. Back then DriveHQ was a very small company, they didn’t offer phone support at that time, but they convinced us with their high quality products, and the fact that they did not rely on VC money was actually viewed as a positive point. We had seen too many VC-funded companies fail, and even large companies like Google, AOL and Yahoo keep closing some of their services. but our experience with DriveHQ was great. If you are looking for another cloud service provider, check out DriveHQ.com, or pick any other company that offers good quality service and not relying on VC funding.

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  2. Sad but probably the better.

    More surprising stories here about technology and the people behind them! — http://www.londonreal.tv/silicon/

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