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9/17/2013
05:05 PM
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Nirvanix Tells Cloud Storage Customers: Move Your Data

Cloud storage pioneer Nirvanix, in danger of closing without further financing, warns customers to retrieve data.

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The cloud storage market appeared to be consolidating around market leaders as Nirvanix, a San Diego-based pioneer in the field, reportedly started advising customers to move their data elsewhere.

Attempts to contact both corporate public relations and the office of the CEO Debra Chrapaty at Nirvanix went unanswered, but InformationWeek's sister publication, CRN, reported Tuesday that Nirvanix partners have been informed of the company's need to find more funding within days or close down.

In addition, Nirvanix is informing its cloud partners that starting Wednesday their customers will no longer be able to replicate their storage to the Nirvanix cloud, CRN reported.

Its account followed on the heels of the U.K.'s InformationAge story Monday that Nirvanix partner Aorta Cloud, a U.K. service provider, had been informed by Nirvanix executives that it has "gone to the wall" on its financing and a shutdown would have to kick in by Sept. 30.

[ Looking for insights into the cloud storage price wars? See Google Counters Amazon Storage Price Cut. ]

Steve Ampleford, CEO of Aorta Cloud, a U.K. service provider, is exploring the possibility of finding new funding for Nirvanix. "We are seeing if there is a chance to keep Nirvanix going," he told InformationAge, an online publication for IT managers, Monday. His firm also runs a boutique venture capital operation, Aorta Capital.

For customers using petabytes of Nirvanix storage, the pending two-week deadline to vacate might not be enough time. Data movements in the cloud are dependent on the speed with which the service provider can write data to an external source and the amount of bandwidth made available to do so.

A test of various services by Nasuni, a Nirvanix competitor, found that moving 12 TB of data from one Amazon S3 bucket to another took four hours. Moving the same amount from Amazon S3 to Microsoft Azure took 40 hours, and from S3 to Rackspace, "just under one week." Moving data from Rackspace into Amazon took only five hours.

Nirvanix is a storage service layered on top of several other cloud service providers as well as its own data center. It added Switch SuperNAP in Las Vegas to its global network of 10 data centers in June 2012.

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Lorna Garey
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Lorna Garey,
User Rank: Author
9/18/2013 | 4:21:51 PM
re: Nirvanix Tells Cloud Storage Customers: Move Your Data
Charlie, What's the top-line lesson for IT here? It's not safe to go with a smaller or new provider - stick with the Amazons of the world? Periodically get backups of data stored in the cloud?
hstiles
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hstiles,
User Rank: Apprentice
9/20/2013 | 2:23:05 PM
re: Nirvanix Tells Cloud Storage Customers: Move Your Data
The lesson here is don't put all your eggs in one basket! Resilience in depth is the key. With the move from hardware to 'The Cloud (tm)', the focus moves up the chain from the tin on which your data is sitting to the provider hosting your data. You wouldn't keep critical data on a device with a single point of failure - you would have redundant hardware or replicate it across multiple locations. So, why should it be any different with a cloud provider?
KawiMan
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KawiMan,
User Rank: Apprentice
9/18/2013 | 5:15:25 PM
re: Nirvanix Tells Cloud Storage Customers: Move Your Data
I have been an IT professional for 30 years.
This is a classic example why I would never trust my data in "The Cloud" Period!
I will always keep my data in local control. If you trust your data elsewhere, then you are at the mercy of others and have lost control of your data, regardless of all of the hype and spin to sell this as the contemporary panacea for data management and storage.
Laurianne
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Laurianne,
User Rank: Author
9/18/2013 | 5:25:43 PM
re: Nirvanix Tells Cloud Storage Customers: Move Your Data
The overwhelming response on Twitter has been clear: Two weeks is not enough time. But let's not indict all cloud storage services because one company's revenue/funding model fell short.

As Charlie notes: "Nirvanix is a storage service layered on top of several other cloud service providers as well as its own data center." The established storage players get some marketing ammunition from this, certainly.
cbabcock
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cbabcock,
User Rank: Strategist
9/18/2013 | 6:46:21 PM
re: Nirvanix Tells Cloud Storage Customers: Move Your Data
Storage turned into a lead generation machine for cloud customers. New customers for cloud computing often emerged from users of cloud storage. So it became a point of intense competition between Google, Rackspace, Microsoft and Amazon. Nirvanix got caught in the cross fire. This is just a theory, but I think it's what happened.Nirvanix invested early, got caught with first generation business model in a loss leader environment.
stevyrino
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stevyrino,
User Rank: Apprentice
9/18/2013 | 7:47:37 PM
re: Nirvanix Tells Cloud Storage Customers: Move Your Data
When you put your privates in the hands of others, you are hooped!
JohnnyD076
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JohnnyD076,
User Rank: Apprentice
9/19/2013 | 3:34:22 AM
re: Nirvanix Tells Cloud Storage Customers: Move Your Data
Exactly. The closest that I get to 'the cloud' is an external hdd. Why make the NSA's job any easier than it already is? Encrypt everything and trust no one with your data.
cbabcock
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cbabcock,
User Rank: Strategist
9/19/2013 | 10:11:22 PM
re: Nirvanix Tells Cloud Storage Customers: Move Your Data
I think specialty cloud vendors can compete, but they must never stray from the notion that they are in a commodity market. Amazon seems to have understood this from the start and refuses to add highly engineered, people intensive, highly supported services. It stays in commodity IaaS, lets others innovate on top. Nirvanix to some extent was a sophisticated storage engineering team caught in a commodity storage world -- with declining prices. Like EMC Atmos and Iron Mountain before it, it found it hard to make any money.
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