May 09, 2014

How to mitigate risk of a cloud provider going out of business?

I’ve never had to face this issue, thank goodness, but what steps should a company take to make sure they are prepared for the possibility that their cloud provider could go out of business?

Ttopp's answer is right on the mark. Research your provider very carefully before making a decision and only choose one with a top notch reputation and financial stability. If you have any doubts about the company, don't go with it.

This isn’t just some remote, not-gonna-happen possibility. It does happen, as a lot of Nirvanex customers learned earlier this year. Essentially, you need to plan for it almost the same way as disaster recovery. There was a good article about this in Networkworld earlier this year. One of the most effective and easiest things you can do to avoid a scenario where a cloud provider goes belly up is to choose the provider carefully. Google, Amazon, IBM...companies that are large and established are far less likely to suddenly go out of business than some small, undercapitalized business. 

If you want to read the entire article, here is a link to it. 


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