Nirvanix has told customers they have until the end of the month to remove their cloud stored data as the company struggles with financial problems and a UK firm thinks about coming to the rescue.
Information Age quotes Steve Ampleford, CEO of UK-based Nirvanix partner Aorta Cloud, as stating Nirvanix had “gone to the wall” and will be turned off on 30 September. This is where another company owned by Ampleford, ‘investment banking boutique’ Aorta Capital, comes in.
"We are seeing if there is a chance to keep Nirvanix going," Ampleford told Information Age, when the subject was broached. "We would need customers to let us know they would like to continue using the service.”
"Nirvanix has good technology. It has a market. It has been growing aggressively. Demand is there for the Nirvanix product. But, it had financial problems,” he added during an interview with CRN.
Nirvanix, the San Jose based cloud service provider, was founded back in 2007 as a result of StreamLoad deciding to split its company into distinct business and consumer units – the former becoming Nirvanix.
After a challenging start where migration issues came to the fore, Nirvanix became a reliable cloud storage provider with IBM signing a five-year deal back in 2011 to enable it to offer an enterprise cloud storage service using Nirvanix.
The company has never had any trouble raising funding with $70 million [£43.5 million] worth of investment since it began life six years ago with the latest windfall in May 2012 giving them an extra $25 million [£15.5 million] to function.
One of the biggest problems has been holding on to high-ranking members of staff with former CEO Scott Genereux moving on to Oracle last year after a raft of others left in the past.
In terms of the Aorta Cloud rescue bid, Ampleford has already engaged with various customers and third party investors and encourages any others interested in getting involved to get in touch.