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25% of Cloud Providers ‘Will Be Gone’ Within a Year

Nirvanix and Symantec Backup Exec.cloud users already know from bitter experience: Just because you choose a cloud provider doesn’t mean that company or its services will stick around.

And by 2015, the problem is going to worsen. By that time, “One in four vendors will be gone for whatever reason acquisition, bankruptcy,” Gartner analyst William Maurer told a standing room-only crowd this week in Las Vegas, according to Computerworld.

Maurer advised attendees of the Gartner Data Center Conference to go easy on their vendors by giving them time to “make a reasonable return on their investments” and make some money. In other words, he cautioned partners not to pressure providers to cut costs.

“Don’t take all the money off the table, because if you do, you are not going to have a lot of them around,” Maurer said, Computerworld reported.

The industry already is seeing fallout from the cloud gold rush with the closure of Nirvanix and the shutdown of Symatec’s cloud backup service for SMBs. On a similar note, IBM recently switched its cloud users to SoftLayer from SmartCloud Enterprise.


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