Nirvanix Files for Bankruptcy, Works with IBM to Migrate Customer Data

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Nirvanix filed for Chapter 11 bankruptcy on Tuesday, and an announcement on the company’s website said that it will continue to be available for data retrieval until Oct. 15.

Nirvanix shutdown was initially reported in mid-September, and it was first thought that data stored with it would only be available for transfer until the end of that month.

Nirvanix previously existing partnership with IBM is now one of data migration assistance, according to the announcement on the website, and a “rapid response team” has been established and can be reached by phone.

The disposal of Nirvanix servers and the data on them will be another potential source of headaches for the company’s customers.

Khosla Ventures and TriplePoint Capital are the largest equity holders in Nirvanix, and are positioned to provide debtor-in-possession financing to keep the company operational while customer exits are dealt with. Nirvanix unsecured creditors include Dell, Nimsoft, and Equinix, and the amounts owed to them range from just over $400,000 in the case of Dell to just over $15,000 to Gartner.

Nirvanix’s claim includes checked boxes for having between $10 and $50 million in both estimated assets and liabilities, but the company does not estimate it will be able to pay back any of the unsecured creditors.

The implications of Nirvanix’s bankruptcy for the hybrid cloud industry are the subject of current debate in the IT and hosting communities. 451 Research’s Michelle Bailey discussed the future of digital infrastructure at the Hosting and Cloud Transformation Summit, and the company’s history is receiving attention and analysis such as this informative post on Tom’s IT Pro.

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