IDG News Service - Another cloud storage operation shut down last week when startup Cirtas Systems, which developed a controller for storage in the cloud, announced it was leaving the market to regroup.
The company, founded in 2008, sold data-center systems designed to make public cloud storage behave like onsite arrays. The Cirtas Bluejet Cloud Storage Controllers were designed to let enterprises use services such as Amazon S3 (Simple Storage Service) for primary storage. Amazon and venture capital firms invested $10 million in Cirtas last September, and the company completed another funding round for $22.5 million in January.
However, cloud storage, a relatively new concept, has had a rocky start in the market. Archiving vendor Iron Mountain plans to close its Virtual File Storage and Archive Service Platform services, though the company says it has other plans in the cloud storage business. Storage systems giant EMC launched a cloud storage service in 2009 but shut it down the following year, before making it generally available for production use.
In a statement, Cirtas held out the possibility of relaunching in the future.
"Cirtas has decided to pull back from the market at this time. Through our deployments we've learned a significant amount about what is required by the market and believe it is in the best interest of the company, our partners, and customers to focus on what we've learned," the company said. A spokeswoman confirmed that Cirtas, based in San Jose, California, had laid off staff and was undergoing a reorganization.
Startups and established vendors all are jumping on the cloud storage bandwagon today, but as with the dot-com boom, reality is setting in, according to analyst Arun Taneja of The Taneja Group. As many as 70% of the cloud storage companies that have been created in the last three years eventually will disappear, he believes. Many other companies have built gateways for cloud storage, including Nasuni, StorSimple and TwinStrata.
"That's what happens when you to through this hype cycle," Taneja said.
The Taneja Group tested Cirtas's product earlier this year and found it worked as promised. But when tested in enterprises at large scale, it failed to bring the needed performance, he said. "Our testing didn't go far enough."
Cirtas may be able to re-emerge, but to succeed, it will probably have to reposition the Bluejet in terms of both technology and marketing, Taneja said. Only a very small percentage of enterprises are ready to use cloud services for primary storage, so a better bet would be to target archiving backup, he believes.
"The fundamental work that they've done is actually still going to be very usable," Taneja said.
- Best iPhone, iPad Business Apps for 2014
- 14 Tech Conventions You Should Attend in 2014
- 10 Desktop Apps to Power Your Windows PC
- How to Add New Job Skills Without Going Back to School
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- Three Best Practices to Help Government Agencies Overcome BYOD Challenges This paper highlightschallenges facing government IT in a BYOD environment and discusses strategies for network preparation, ongoing support, and securing information to enable...
- Analyst Report-Mixed All Flash Arrays Delivers Safer Higher Performance What is the impact of an all-flash array with enterprise features and reliability on the mainstream data center? In the mainstream environment, storage...
- Embracing Flash Storage Exec Brief Flash storage can deliver impressive performance, especially for random I/O, by eliminating rotational and seek latencies that are common in all hard disk...
- Embracing Tiered Storage Exec Brief All data is not created equal and thus all data need not be treated the same by the storage system. IT executives must...
- Make or Break: New Auto Products Must Go To Market On Time This Webcast quantifies the value of time to market for the auto industry and highlights how Primavera Enterprise Portfolio Management can help organizations.
- IBM Flash Webcast: Optimizing your Datacenter for Efficient Storage & ROI Register for this webcast to learn the benefits of flash storage from IBM Customer, Leonardo Irastorza of Royal Caribbean Cruise Ltd and Storage... All Data Storage White Papers | Webcasts