{"id":76487,"date":"2015-04-07T22:04:52","date_gmt":"2015-04-08T02:04:52","guid":{"rendered":"http:\/\/rbach.net\/blog\/index.php\/"},"modified":"2021-08-01T15:38:15","modified_gmt":"2021-08-01T19:38:15","slug":"another-cloud-goes-bust","status":"publish","type":"post","link":"https:\/\/rbach.net\/index.php\/another-cloud-goes-bust\/","title":{"rendered":"Another Cloud Goes Bust"},"content":{"rendered":"<p><a href=\"http:\/\/varsitytents.com\/watching-the-clouds-go-by\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-106389\" title=\"Another Cloud Goes Bust\" src=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/cloud_storm-2.png?resize=112%2C79&#038;ssl=1\" alt=\"Another Cloud Goes Bust\" width=\"112\" height=\"79\" srcset=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/cloud_storm-2.png?resize=150%2C106&amp;ssl=1 150w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/cloud_storm-2.png?resize=75%2C53&amp;ssl=1 75w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/cloud_storm-2.png?w=361&amp;ssl=1 361w\" sizes=\"auto, (max-width: 112px) 100vw, 112px\" \/><\/a>On April Fools day, another <strong>cloud provider closed down without any warning<\/strong>. <a title=\"FierceBigData\" href=\"http:\/\/www.fiercebigdata.com\/\" target=\"_blank\" rel=\"noopener noreferrer\"><em>FierceBigData<\/em><\/a>\u00a0<a title=\"Spotlight: Cloud vendor Nebula collapses without notice\" href=\"https:\/\/web.archive.org\/web\/20150411130835\/http:\/\/www.fiercebigdata.com:80\/story\/spotlight-cloud-vendor-nebula-collapses-without-notice\/2015-04-06\" target=\"_blank\" rel=\"noopener noreferrer\">reports<\/a> that <a href=\"http:\/\/openstack.org\/\" target=\"_blank\" rel=\"homepage nofollow noopener noreferrer\">OpenStack<\/a> cloud vendor <a title=\"Nebula\" href=\"https:\/\/web.archive.org\/web\/20160504140227\/https:\/\/www.nebula.com\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Nebula<\/strong><\/a><strong> ceased operations<\/strong> on April 01, 2015 without ever a heads-up.<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-106391\" title=\"shut-down operations without ever a heads-up\" src=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/face_palm1-2.jpg?resize=85%2C100&#038;ssl=1\" alt=\"shut-down operations without ever a heads-up\" width=\"85\" height=\"100\" srcset=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/face_palm1-2.jpg?w=95&amp;ssl=1 95w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/face_palm1-2.jpg?resize=64%2C75&amp;ssl=1 64w\" sizes=\"auto, (max-width: 85px) 100vw, 85px\" \/>The firm, founded in 2011 by former <a title=\"NASA\" href=\"http:\/\/www.nasa.gov\/\" target=\"_blank\" rel=\"homepage nofollow noopener noreferrer\">NASA<\/a> CTO, <a title=\"Chris Kemp\" href=\"https:\/\/web.archive.org\/web\/20210102072511\/https:\/\/www.crunchbase.com\/person\/chris-kemp\" target=\"_blank\" rel=\"crunchbase nofollow noopener noreferrer\">Chris Kemp<\/a>, appeared to have it under control. According to <em><a title=\"Nebula, OpenStack cloud vendor, just shut down with no notice\" href=\"https:\/\/web.archive.org\/web\/20160304041358\/http:\/\/blogs.csc.com\/2015\/04\/02\/nebula-openstack-cloud-vendor-just-shut-down-with-no-notice\/\" target=\"_blank\" rel=\"noopener noreferrer\">CSC<\/a><\/em>, they seemed to have customers for its <strong>Nebula Cloud Controller<\/strong>, an appliance that integrated up to <strong>forty x86 white-box servers into a turnkey OpenStack cloud<\/strong>.\u00a0Customers of Nebula have included <strong>Lockheed Martin,<\/strong> Shutterfly, <strong>Sandia National Laboratories<\/strong>, and Genentech.<\/p>\n<p>The company also had a fat war-chest of almost $<strong>40 million from top-tier VCs<\/strong>. <em><a title=\"OpenStack hardware startup Nebula closes after burning through $38.5m in venture capital\" href=\"https:\/\/siliconangle.com\/2015\/04\/03\/openstack-hardware-startup-nebula-closes-after-burning-through-38-5m-in-venture-capital\/\" target=\"_blank\" rel=\"noopener noreferrer\">Silicon Angle<\/a><\/em>\u00a0reports that Nebula managed to burn $38.5 million in venture capital prior to its closure, from investors including <a href=\"http:\/\/www.winfunding.com\/\" target=\"_blank\" rel=\"homepage nofollow noopener noreferrer\">Webb Investment Network<\/a>, Comcast Ventures, <a title=\"Scott McNealy\" href=\"http:\/\/replay.waybackmachine.org\/20100104071457\/http:\/\/www.sun.com\/aboutsun\/executives\/mcnealy\/bio.jsp\" target=\"_blank\" rel=\"homepage nofollow noopener noreferrer\">Scott McNealy<\/a>, <a title=\"William Hearts II\" href=\"https:\/\/web.archive.org\/web\/20131001081315\/http:\/\/www.crunchbase.com\/person\/william-hearts-ii\" target=\"_blank\" rel=\"crunchbase nofollow noopener noreferrer\">William Hearts II<\/a>, <a title=\"Kleiner Perkins Caufield &amp; Byers\" href=\"http:\/\/www.kpcb.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Kleiner Perkins Caufield &amp; Byers<\/a>,<span class=\"apple-converted-space\">\u00a0<\/span><a title=\"Highland Capital Partners\" href=\"https:\/\/web.archive.org\/web\/20211104103332\/https:\/\/www.hcp.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Highland Capital Partners<\/a>, and others.<\/p>\n<p>Despite its well-stocked war-chest, <strong>customer support ended immediately<\/strong>. The defunct company told its former customers to turn to \u201cOpenStack products from vendors including <a title=\"Red Hat\" href=\"https:\/\/www.redhat.com\/en\" target=\"_blank\" rel=\"noopener noreferrer\">Red Hat<\/a>,\u00a0<a title=\"IBM\" href=\"http:\/\/www.ibm.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">IBM<\/a> (<a title=\"NYSE : IBM\" href=\"https:\/\/www.nyse.com\/quote\/XNYS:IBM\" target=\"_blank\" rel=\"noopener noreferrer\">IBM<\/a>),\u00a0<a title=\"HP\" href=\"http:\/\/www.hp.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">HP<\/a> (<a title=\"NYSE : HPQ\" href=\"https:\/\/www.tradingview.com\/symbols\/NYSE-HPQ\/\" target=\"_blank\" rel=\"nofollow noopener\">HPQ<\/a>) and others.\u201d<\/p>\n<p><strong><em>rb-<\/em><\/strong><\/p>\n<p><em><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-106393\" title=\"burned $38.5 million in venture capital prior to its closure\" src=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/data_center_trouble.jpg?resize=174%2C120&#038;ssl=1\" alt=\"burned $38.5 million in venture capital prior to its closure\" width=\"174\" height=\"120\" srcset=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/data_center_trouble.jpg?resize=150%2C103&amp;ssl=1 150w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/data_center_trouble.jpg?resize=75%2C51&amp;ssl=1 75w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/data_center_trouble.jpg?w=418&amp;ssl=1 418w\" sizes=\"auto, (max-width: 174px) 100vw, 174px\" \/>The stability of cloud providers is really questionable. I have covered other cloud provider implosions;\u00a0<a title=\"Cloud Exit Plan\" href=\"https:\/\/wp.me\/p2wgaW-gpw\" target=\"_blank\" rel=\"noopener\">MegaCloud<\/a>, <a title=\"The Nirvanix Failure: Villains, Heroes and Lessons\" href=\"http:\/\/www.networkcomputing.com\/storage\/the-nirvanix-failure-villains-heroes-and-lessons\/a\/d-id\/1234483?\" target=\"_blank\" rel=\"noopener noreferrer\">Nirvanix<\/a>,\u00a0and\u00a0<a title=\"Another Cloud Implosion\" href=\"https:\/\/wp.me\/p2wgaW-ieK\" target=\"_blank\" rel=\"noopener\">Code Spaces<\/a>.<\/em><\/p>\n<p><em>In the end, it is as simple as the author says the moral of the story is &#8220;that you should look very carefully at your partners &#8230; you must be able to count on your system integrator, value-added reseller, whoever, to be there when you need them.\u00a0<\/em><\/p>\n<h6>Related articles<\/h6>\n<ul>\n<li>UPDATE 1-Juror in gender lawsuit sympathized with Pao, sided with Kleiner (biztechclass.com)<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><em><a title=\"Ralph Bach\" href=\"http:\/\/rbachnet.wwwmi3-ss40.a2hosted.com\/index.php\/new-resume\/\" target=\"_blank\" rel=\"noopener noreferrer\">Ralph Bach<\/a>\u00a0has been in IT long enough to know better and has blogged from his\u00a0<a title=\"Bach Seat\" href=\"https:\/\/rbach.net\/\" target=\"_blank\" rel=\"noopener noreferrer\">Bach Seat<\/a> about IT, careers, and anything else that catches his attention since 2005. You can follow him on <a href=\"https:\/\/www.linkedin.com\/in\/rb48334\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">LinkedIn<\/a>,\u00a0<a href=\"https:\/\/www.facebook.com\/ralph.bach.14\" target=\"_blank\" rel=\"noopener noreferrer\">Facebook<\/a>,\u00a0and\u00a0<a href=\"https:\/\/twitter.com\/rbach48334\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter<\/a>. Email the Bach Seat\u00a0<a href=\"mailto:\/\/bach.seat@gmail.com\" target=\"_blank\" rel=\"noopener noreferrer\">here<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Another cloud provider goes under with no notice can you count on your cloud provider to be there when you need them<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[3277,1741,173,168,43,2424,15,2425,2366,2423,2422],"class_list":["post-76487","post","type-post","status-publish","format-standard","hentry","category-networking","tag-3277","tag-bankruptcy","tag-cloud-computing","tag-hp","tag-ibm","tag-nebula","tag-networking","tag-openstack","tag-red-hat","tag-vc","tag-venture-capital"],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO 4.9.8 - aioseo.com -->\n\t<meta name=\"description\" content=\"Another cloud provider goes under with no notice 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