Feeds

Cirtas dumps staff and retreats

Cloud storage supplier faces storm

Top 5 reasons to deploy VMware with Tegile

In January, we asked if cloud storage start-up Cirtas would be a rainmaker. Now its very survival is in doubt as funding is withdrawn and 21 staff are dismissed.

The news came from a senior engineer at Cirtas, Dave Graham, through his Twitter feed. "Well, the waiting is over. as of 3pm TODAY, i, along with 20 others are no longer employed by Cirtas Systems," he said on Monday.

Cirtas provides BlueJet cloud gateways and there were apparently problems of them under-delivering in terms of performance for primary storage applications, and problem fix time. A Gigaom story supplies more details.

Business results were not good enough and two backing venture capitalists, Bessemer Venture Partners and Shasta Ventures, reportedly pulled funding, three-and-a-half months after an January funding round that brought in $22.5m, taking total Cirtas funding to $32.5m.

The business apparently depends upon enterprise customers having longish proof of concept trials and these delay sales. It appears that cloud storage is no instant goldmine, and the VCS who piled in so enthusiastically in mid-winter are now walking away because spring isn't happening fast enough.

Suppliers like Nirvanix who sell cloud storage to small and medium businesses are not facing the same problems. Other cloud storage gateway product companies like Nasuni and StorSimple will have their business performance examined closely to see if they face similar problems

Earlier this month, Iron Mountain withdrew from most of its cloud storage operations, ditched its CEO, and is considering selling its digital storage business as it reaches an accommodation with disgruntled investors.

What's next at Cirtas? It's retreating from the market and regrouping. The sacking of engineering staff suggests that further development work is being stopped, and that a sale of assets might be being considered by CEO Gary Messiana, appointed in January. As he was a Bessemer man, his CEO role may be under question and co-founder Dan Decasper, whom he replaced, may find himself back in the hot seat. ®

Beginner's guide to SSL certificates

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
CAGE MATCH: Microsoft, Dell open co-located bit barns in Oz
Whole new species of XaaS spawning in the antipodes
AWS pulls desktop-as-a-service from the PC
Support for PCoIP protocol means zero clients can run cloudy desktops
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.