Customers Scramble as Cloud Services Provider Goes Out of Business
Nirvanix Cloud Services Provider Closes Leaving Clients Stranded and without company data
Nirvanix cloud customers are facing their worst nightmares. On September 17th Nirvanix started taking steps to close their doors.These sent all of Nirvanix’s customers in a panic. They have to move all of their off of Nirvanix’s servers by October 15th or they will lose it forever
According to Sonia Lelii from TechTarget, The plan is to close two or three of the data centers Nirvanix leased from CoreSite co-locations and Equinix data centers located in the United States, Asia and Europe. The rest of the Nirvanix data centers will be used to pull data out of the systems. Nirvanix has a program called Direct Connections, in which customers could use the Internet or the LAN for high bandwidth to move data.
Some of Nirvanix’s partners are trying to extend the deadline an additional two months. This deadline is more practical for customers to get all of their data off before the servers are shut down.
IBM Global Services has an OEM deal with Nirvanix, but IBM’s acquisition of Nirvanix competitor SoftLayer is considered one of the triggers of Nirvanix’s demise.
In the end Nirvanix could not compete on price with public cloud giants such as Amazon, Google and Microsoft. Nirvanix filed for bankruptcy. Their website says, “Nirvanix voluntarily sought Chapter 11 bankruptcy protection in order to pursue all alternatives to maximize value for its creditors while continuing its efforts to provide the best possible transition for customers.”
The end of such a big Cloud Services Provider raises the question: What do you do when your Cloud Services Provider goes out of business?
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