I’m quite surprised at today’s news that cloud-storage software provider ParaScale is reining in its operations after failing to secure a second round of funding. It’s difficult to speculate without additional details, but I suspect part of the issue might be a failure to sufficiently market the product to service providers. From IaaS-software startups to big storage vendors (like NetApp) to other cloud-storage startups, everyone has been making their livings selling to service providers. Presently, service providers have the most need for such solutions, while individual organizations are waiting to delve into cloud software. If ParaScale’s solution or sales model didn’t take this reality into account, it could explain the current funding woes.