Cloud Storage Company Nirvanix Files for Bankruptcy – Pull Your Data By October 15th

Nirvanix, the American-based provider of cloud storage services, filed for Chapter 11 bankruptcy protection on October 1st and customers have until October 15th to get all your cloud data downloaded or moved to another cloud storage solution!

Here is the statement that can be found on the Nirvanix website.

For the past seven years, we have worked to deliver cloud storage solutions. We have concluded that we must begin a wind-down of our business and we need your active participation to achieve the best outcome. We are working hard to have resources available through October 15 to assist you with the transition process, and have set up a rapid response team that can be reached at (619) 764-5650 [press 2 for customer support during normal business hours] or (888) 791-0365 after business hours.

Nirvanix might not have been a household name, but over the years they raised $70 million from companies like Intel Capital, Mission Ventures Valhalla Partners and Khosla Ventures.

nirvanix logo

You might not have had an account with them, but it turns out some big name companies like Seagate were using them for their customers cloud storage services.  

Hello Seagate Cloud Storage user,

Seagate Dashboard cloud storage service is going through some updates. As a result, the upload capability of the cloud service will be unavailable for a few days (October 3rd – October 18th) while the updates are processing and testing. This means any backups scheduled during that time will be suspended or may result in errors.

Data already stored on the cloud service is still available via and should be available throughout the update.

To prepare for this update, it is recommended that any files stored on the cloud storage be copied to a local drive before October 3rd. Upload and backup capability are expected to resume on October 18th.

For your patience we are preparing a special offer and will provide details of this offer in a separate email next week.

Seagate Cloud Storage Team

This could just be a coincidence, but it sure appears that Seagate was a customer of Nirvanix and is having to move all the users of Seagate Dashboard cloud storage service to another cloud storage company.  Being without the ability to upload or backup your data for over two weeks is pretty bad, but what about the safety of your data as it is being moved around to different cloud storage companies.

UPDATE 10/04/13 7PM CT: Here is the official statement on the Seagate Cloud Service Issue:

“Seagate Dashboard backup software is included on every Seagate Backup Plus and Slim external storage device, offering traditional local backup, as well as integrated cloud storage. Nero, Seagate’s third-party software vendor for this cloud storage, informed us on September 18th that their back-end storage service provider was abruptly shutting down. As such, Seagate and Nero quickly investigated options to minimize the impact on our customers. The result of this is a solution that requires temporary suspension of user data upload while the back-end service is swapped and data is migrated to the new provider. Once the migration plan was finalized, Seagate sent an email on October 2nd informing our customers of this brief data upload interruption. Customers were also informed that their data would continue to be available for download during this maintenance period and advised to make a copy of any content stored in the cloud merely as a precautionary measure.” Seagate PR