Author(s): Terri McClure

Published: December 29, 2011

Reflections on 2011: Nirvanix's Management Moves Paid Off

Sometimes in this business it is hard to separate the real stuff from the marketing fluff.  One of the big questions I've been asked in 2011 is whether or not there is any momentum behind cloud storage.  That is a tough question to answer - the biggest players, Amazon and Microsoft, are mammoths that don't break out storage services revenue - we hear about adoption but understanding just how much is from storage services can be tough.  That is why it is easier to look past the mammoths and look at the standalone companies.  And that is what makes it interesting to look at Nirvanix.

Nirvanix had some pretty impressive wins in 2011, and has done a good job getting its customers to go public.  It has been roughly a year since the new management took over, and their diversification strategy seems to be working.  Nirvanix sells both software and storage services.  Notable wins in 2011 include:

  • Relativity Media-next gen studio behind hits like "Immortals" and "Limitless"; will leverage NVX public cloud for content collaboration to bring movies to completion faster.
  • NBC Universal is deploying 2+ Petabytes (videos, photos, movies; leveraging Nirvanix public cloud for content archival and collaboration).
  • Advocate Healthcare has 500TB (healthcare content files; NVX public cloud).
  • USC deployed 8.5 Petabytes (Videos, Photos; USC will also resell NVX Private Cloud as the USC Digital Repository).
  • Cerner Healthcare for 2+ Petabytes (for PACs, radiology, clinical systems, patient records; Cerner will also resell NVX Private Cloud as Cerner Skybox Public Cloud).
  • IBM is deploying a Multi-Petabyte Global Private Cloud; NVX is essentially building a replica of its Cloud Storage Network for IBM to sell as its own public cloud-IBM SmartCloud Enterprise.
  • DRFortress is offering an onsite physical node federated with Nirvanix public cloud, providing its customers with a hybrid cloud storage deployment.

The first three are true public cloud users that are leveraging Nirvanix to accelerate business (because, as Steve D. mentioned in his blog last month, doing all the storage stuff yourself stinks, or something to that effect).  But the rest are resellers as well as users.  Now, this is a pretty impressive list - names we know and love.

I've actually talked to a few of the resellers and there seems to be strong momentum in the channel.  I don't think it would be too risky to say that the strategy Nirvanix management laid out a year ago and has been executing against since is paying off for them.  Granted, Nirvanix adoption is only a microcosm in the larger cloud universe - but it is proving that the business model can work and there is money in IaaS.  Rumors of Nirvanix's demise were swirling a mere 18 months ago, rumors which the new team seems to have silenced.

Looking forward to 2012, it would not be surprising to see Nirvanix gobbled up by a bigger player who can leverage the current cloud delivery network infrastructure, cloud software, and hybrid cloud model to offer both public and virtual private cloud services.  There are a lot of variables - a lot depends on the economy, and it is sure to be a shaky year because of the elections.  But Nirvanix is one I will be keeping an eye on.

You can read Terri's other blog entries at IT Depends.


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ESG Senior Analyst Terri McClure focuses on network attached storage, file systems, unified storage, cloud storage, and enterprise mobility, including enterprise file sync and share solutions. Since joining ESG, she has become a much-sought-after analyst in the storage space. Terri brings more than 20 years of data storage industry experience to her role.

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