Nirvanix bowed to the diverse services of Amazon and Microsoft

In the startup environment, it is a habit to talk about successes to keep our hopes alive for the future, but it is a big mistake to forget the failures of the past and not benefit from the experiences of the past. For this purpose, the Ecomotive team has collected the experiences of a series of failed startups, so that reviewing their failed stories may be a basis for the success of new startups in Iran’s startup community. This collection will be published and made available to the audience in the form of the story of failure. We review the twenty-sixth part of this series, which deals with the story of Nirvanix’s startup failure.

Nirvana by name streamload by Steve Iverson in San Diego; California was born and was one of the first Internet storage services. The main product of the company with the title Mediax In 2007, it separated from it and changed its name to Nirvanix.

Not long after, in August 2008, the company faced a big crash; The crash resulted in the loss of data for 20,000 users who had paid to keep their data. By denying its responsibility in this matter, Nirvanix blames its subsidiary ie link up He said that he was responsible for hosting the program and the database.

Finally, with the continuation of the downward trend of the company, on September 16, 2013, Nirvanix announced the end of its activities, warning users that they have until September 30 to remove their data from this service. On September 28, this warning was fulfilled and the company’s website was disabled. Of course, the team IBM It helped users migrate their data from Nirvanix infrastructure. In early October 2013, the company announced its bankruptcy.

Nirvanix had a very experienced and strong management team and renowned industry support, and had a relatively large customer base that included reputable organizations in the fields of economics, health, media, and education. The question is why such a startup failed?

Niranix’s business model was based on providing storage space on a fixed price per gigabyte basis, which made it easy for customers, but in a market where the company had to compete with giants such as Amazon and Microsoft, which constantly kept prices competitive with They reduced each other, it did not create a distinct value for him.

Furthermore, the only service Niranix offered was storage, while competitors such as Amazon bundled other apps and services into their storage. Because of this, Nirvanix could not act as a supplier Infrastructure services compete in the market.

On the other hand, the company never disclosed the details of its infrastructure architecture and was believed to have a relatively small software base and basically no real IP. In addition, Nirvanix is ​​committed to providing important aspects of its service and meeting the needs of its many customers to its partners such as Panzura relied on Of course, the company had its own innovations and capabilities, but not enough.