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It’s not each day we witness a cloud supplier abruptly closing its doorways. But, that’s precisely what occurred when NetEase, a Hangzhou, China-based internet and gaming giant, announced it was shutting down its public cloud service. As of April 7, 2025, the platform will go offline completely. Shoppers 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 corresponding to Amazon Net Companies (AWS), Microsoft Azure, and Google Cloud, displays the challenges we see as we speak. 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 sturdy infrastructures, world attain, and in depth 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 house altogether. Notable examples embrace Nirvanix, a cloud storage supplier that shuttered operations in 2013, GoGrid, which pivoted to concentrate on information companies and left the general public cloud market, and Joyent, which bought its cloud enterprise after failing to compete with hyperscalers. All of them had prospects who wanted to shortly work out an exit technique.
