Cloud Storage Startup Nirvanix Tells Customers, Partners It's Shutting Down

edited September 2013 in CRN Community

imageCloud Storage Startup Nirvanix Tells Customers, Partners It's Shutting Down

Nirvanix, a cloud storage startup that's used for disaster recovery and archiving, is telling cloud partners it's shutting down, in what could e a bad omen for the cloud storage market.

Read the full story here


  • Just heard back from Dell. That company no longer has a business relationship with Nirvanix.

    Joe Kovar
    Friend of the Channel and co-writer of this story
  • Well, it is nice to see the list of VCs on the losing end of that last $25M funding round at Nirvanix. The handwriting was on the wall at Nirvanix since March when the CEO and top managers ran out the exits. New CEO comes in and then no news from Nirvanix until the "going out of business" announcement last week when all employees got pink-slipped. No additional funding, no fire sale, no white knight and no way out for Nirvanix customers, some of whom were storing multiple PBs at Nirvanix. Simon Robinson from 451 Research had three plausible reasons for the demise of Nirvanix. 1) The Nirvanix business model was too capital intensive for what the company was charging and the company eventually burned through its cash. 2) The Nirvanix "Cloud File System" software did not scale-out as well as they were expecting. This eventually became problematic because Nirvanix needed to scale-out to keep growing in order to run with the big dogs. 3) Nirvanix did not evolve beyond its initial storage service offering. This limited the extent to which customers could grow in their use of cloud infrastructure with Nirvanix. There could be more to this story than meets the eye and if there is, we will have to wait until someone on the inside at Nirvanix tells their story.
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