Cloud

Yikes! Cloud storage service Nirvanix apparently tells customers: We’re shutting down in two weeks

Image Credit: http://www.flickr.com/photos/karsund/5602039700/

Nirvanix, a cloud-based storage service for enterprise-level customers, reportedly told customers that it would be shutting down effective Sept. 30, according to Information Age.

If true, this means the clients who rely on Nirvanix’s cloud services have about two weeks to move all their data off of Nirvanix’s services and on another, hopefully more reliable, cloud-storage service. And in case you’re wondering, this is by no means an easy task in such a short amount of time.

We’re reaching out to Nirvanix and will update this post with any new information.

Nirvanix has previously proven itself as a credible cloud storage provider, having formed partnerships with many notable tech firms, including Symantec, IBM, Dell, Ooyala, and many others. It’s positioned itself as an alternative to the far better known Amazon Web Services (AWS). According to a recent Gartner estimate, AWS has more than five times the combined capacity of its 14 largest rivals.

The rapid shutdown of such a large cloud storage service would not bode well for other smaller or lesser-known cloud storage providers, either, I would imagine. Why risk going with a smaller company if it could wind up going out of business with only two weeks’ notice?

The information about Nirvanix’s shutdown comes after several of its clients were notified yesterday, according to Information Age’s report. One of the company’s partners, Aorta Cloud, is said to be exploring the idea of raising new funding for Nirvanix, which would presumably allow the company to continue operating. And another thing that isn’t easy to do in the span of two weeks? Raise significant funding in the millions of dollars range.

Nirvanix has previously raised $70 million in funding from Khosla Ventures, Valhalla Partners, Intel Capital, Mission Ventures, and Windward Ventures. Its last round was for $25 million, in May, 2012.