Zenith Infotech planned operations shutdown

Posted by Alan Earls on Oct 6, 2014 3:32:32 PM

A report from Channelnomics states that venerable cloud infrastructure and backup service provider Zenith Infotech is planning a rapid shutdown of operations, as soon as Oct. 15.  The information is not posted on the Zenith Infotech web site but the “contact us” page is no longer functional – never a good sign.

zenithinfotechprod_logoTo be sure, the firm’s troubles have been in the news for some time. The shutdown is the ultimate fallout of a company debt crisis dating back years, which, according to Channelnomics, led it, over the Labor Day weekend, to inform its customers that it planned to cease operations in six weeks.  The India-based organization delivers managed services, backup, and cloud infrastructure services.

Zenith Infotech is certainly not the first cloud or backup company to face problems but its demise underscores the importance of selecting reliable partners and perhaps even having a second source available.

For solution providers who leveraged Zenith Infotech, the challenge ahead is to quickly make sure their cloud and backup customers are secure and taken care of. And the key to that is to be proactive, positive and, of course, provide a strong and viable alternative.

No one likes to be blindsided, so make sure customers are in the loop and cognizant of what has happened and aware of the steps you are taking or have taken to replace the service or provide something even better. This can also be an opportunity to reach out to other organizations, outside of your customer base, that may have been impacted. They will appreciate the lifeline you offer and will be ready and anxious to consider new approaches.

Next, be prepared to do some “hand holding.”  Although Zenith Infotech’s problems might make some question the whole cloud approach, in fact cloud is growing, especially for backup and recovery. For instance, a TechTarget-Computer Weekly survey of some 1300 IT professionals last year found not only that that all cloud services are expected to grow but that some, such as DR and business continuity, are expected to grow a lot –from about 18 percent of respondents to more than 28 percent. Likewise, the use of cloud storage services for disaster recovery is also set to rise from 36% currently to 51%, according to Computer Weekly.  In short, cloud is still a great choice. But the right provider is a crucial decision.

Delivering the goods is the next challenge.  If you are on this site, you are probably aware that Intronis offers a great replacement choice for many of these customers, protecting files and folders and Exchange, SQL, VMware, and Hyper-V data.

Furthermore, the Intronis ECHOplatform is expanding. Intronis says it is bringing on new partners every day and aims to fully support IT service providers left adrift by Zenith.

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Topics: Business Development, Customer Management

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