Cloud services terminating or scaling down in 2016

2016 will be the year of truth for cloud computing. On one side organizations express a growing understanding and interest in cloud computing. On the other side some vendors are downscaling or even terminating services.

The gap between the hyperscale cloud providers Amazon AWS and Microsoft Azure and niche players will become bigger.

Just less than two months old, 2016 saw already a couple of cloud services bit the dust or scaling down.

VMware vCloud Air scales down 
vCloud Air is VMware’s public IaaS offering. It is based on vSphere technology offering IaaS, DRaaS and DaaS services. End of January VMware announced it will cut jobs in the vCloud Air team. While the exact strategy is unclear, VMware vCloud Air will probably focus on niche services and will not expand to more datacenters. It for sure will not compete with Azure and Amazon, if it ever did so. One of the problems was that hardly any customer knew about vCloud Air and the unique selling point. Contrary to Azure and Amazon, vCloud Air supports the pet-type of application which depends on availability of a single VM.

Deutsche Börse Cloud Exchange (DBCE) discontinues operations

DBCE was a unique IaaS cloud exchange. It allowed cloud consumers to consume IaaS resources from various cloud providers using a common contract and management portal. However the German market did not adopt this new model of exchange. The service will be terminated in March 2016. More on DBCE here. German news on the termination of DBCE here.

Verizon Verizon’s Public Cloud and Reserved Performance Cloud services terminates
Two of Verizon’s cloud services will be terminated. Customers have two months to move their services to other providers. After 12 April Verizon will shut down virtual services and delete data. The reason for termination is not known but likely based on a strategy of Verizon to concentrate on other services.

cloudControl PaaS platform terminates
cloudControl is a German based PaaS platform based on Docker. The company bought dotCloud technology from Docker. dotCloud announced at January 22 that it will terminate its service. The around 500 customers have until February 29 to move their applications and data to a different platform. One of the reasons for the financial problems of dotCloud was the scaledown of one of the biggest customers. A February 16 the mother company cloudControl also announced it will terminate its services.

HP Helion Public Cloud 
HP Helion Public Cloud offering will terminate at January 31 2016 as announced in October 2015.  HP believes competing with Amazon and Microsoft does not make sense.

Cisco confirms it’s killing Intercloud public cloud in March 2017

Cisco has confirmed that it will stop offering its Cisco Intercloud Services public cloud infrastructure in March 2017. Cisco will move workloads to other infrastructure, “including in some cases public cloud,” a spokesperson told VentureBeat in an email. The spokesperson would not specify which public clouds will be taking the additional workloads. More info.

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