It’s not day by day we witness a cloud supplier abruptly closing its doorways. But, that’s precisely what occurred when NetEase, a Hangzhou, China-based web and gaming big, introduced it was shutting down its public cloud service. As of April 7, 2025, the platform will go offline completely. Purchasers are being inspired emigrate to different companies. Though this transfer is restricted to a small variety of purchasers in mainland China, it raises broader questions on how companies ought to safeguard themselves from the dangers related to a cloud vendor shutdown.
The consolidation of the cloud computing market from 2010 to 2013, as smaller suppliers confronted difficulties competing with main gamers reminiscent of Amazon Net Providers (AWS), Microsoft Azure, and Google Cloud, displays the challenges we see at this time. After the preliminary growth within the public cloud market, many smaller, area of interest suppliers struggled to compete with the numerous investments and economies of scale achieved by the bigger gamers. Prospects started gravitating towards suppliers with strong infrastructures, world attain, and intensive service choices, leaving smaller gamers unable to scale profitably or put money into cutting-edge options.
Throughout this era, a number of cloud corporations exited the general public cloud area altogether. Notable examples embrace Nirvanix, a cloud storage supplier that shuttered operations in 2013, GoGrid, which pivoted to concentrate on knowledge companies and left the general public cloud market, and Joyent, which offered its cloud enterprise after failing to compete with hyperscalers. All of them had clients who wanted to shortly determine an exit technique.
