[LINK] itNews: 'Cloud provider evaporates'
Roger.Clarke at xamax.com.au
Wed Sep 18 13:49:06 AEST 2013
[I've warned about cloud risks in a series of papers:
[One was specifically on unreliability and survival issues, at:
[Here's an excellent example of the problem. The article notes two
other providers that have previously disappeared into the ether.
[And note that data-format interoperability standards are things that
the industry waffles on about, not things that they deliver.]
Enterprise cloud storage provider to shut down
Sep 18, 2013 10:13 AM (3 hours ago)
Gives customers two weeks to move data.
US-based cloud storage provider Nirvanix has given its customers two
weeks to re-locate their data as it prepares to surrender to reported
The enterprise startup has instructed its staff to tell customers
their service will be switched off on September 30th, according to
multiple reports. The company is yet to comment.
Many Nirvanix customers may be unaware their data is hosted with the service.
Two years ago Nirvanix signed a five-year original equipment
manufacturer (OEM) deal with IBM under which the software giant
white-labelled the Nirvanix platform as the foundation of its
SmartCloud Enterprise storage service.
This deal may have soured in recent months after IBM purchased
Nirvanix competitor, SoftLayer, in July 2013.
Customers of Dell, Symantec and Commvault also bundled interfaces
into their storage products to allow for multiple snapshots of data
from their physical devices to be copied into Nirvanix's storage
In the US, Nirvanix counts the likes of Fox News, National Geographic
and the University of Southern California as direct customers.
Nirvanix isn't the first cloud storage provider to surrender to a tough market.
Iron Mountain and EMC announced the termination of their respective
cloud storage services in 2011 and 2010 respectively. Both cited
intense price competition from the likes of Amazon, Microsoft and
Google as the reason for shutting up shop.
Mark Randall, director of sales and marketing at Australian hosting
company Bulletproof Networks said it was "highly likely we'll see
more casualties in the coming years."
"The bigger picture here is the disruption in the industry, caused
primarily by Amazon Web Services."
Bulletproof recently signed on as a managed service provider for
cloud services hosted in AWS and offers hosting services
cross-connected to one of AWS' Sydney instances.
"Cases like this reinforce that customers have to do a more thorough
due diligence on their cloud providers," Randall said.
"You not only have to think about the viability of the provider, but
also who your provider is relying on to offer the service. It is rare
that any one provider owns the full stack - cloud service providers
usually lease data centre space from co-lo providers, and then there
are folks like ourselves supporting third party platforms like
Amazon. You have look at the complete picture."
Randall said large customers have usually conducted thorough
financial due diligence on Bulletproof, asking for the balance sheet
and profit and loss over successive years.
"I expect more of these questions will be asked into the future," he said.
One of Nirvanix's partners, Aorta Cloud, is reportedly hoping to
raise more funding to keep Nirvanix in operation. Nirvanix has raised
a total of US$70 million from capital partners since its inception.
Aorta is among a swarm of cloud providers offering discounts to
Nirvanix customers. Google staff this morning took to Twitter
offering US$1000 to use on its Cloud Storage product to "get
started", while others have touted tools that purport to help shift
virtual machines from one cloud platform to another.
Nirvanix is yet to reveal what will happen to the data of those
customers which fail to move off its services by the September 30
Roger Clarke http://www.rogerclarke.com/
Xamax Consultancy Pty Ltd 78 Sidaway St, Chapman ACT 2611 AUSTRALIA
Tel: +61 2 6288 6916 http://about.me/roger.clarke
mailto:Roger.Clarke at xamax.com.au http://www.xamax.com.au/
Visiting Professor in the Faculty of Law University of N.S.W.
Visiting Professor in Computer Science Australian National University
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