Advances in technology can lead to the formation of new business ventures, often with an eye toward perfecting advances and profiting handsomely. The last several years have seen advances which have had a huge impact on a whole way of life for many Escondido residents, whether it is from the development of smartphones, added perks in an automobile or simply smaller, faster computers. When it comes to technology, it almost seems like a new product is obsolete before a costumer can get it out of the box.
One San Diego-based company, Nirvanix, sought to build a business model around "cloud" computing. Cloud-based storage is probably fairly new, in relative terms, to most people. The idea is that digital files are not saved directly to a device's hard drive, but rather to a server so that the files can be accessed from any device with an Internet connection. Business people are already finding that this is a very useful concept, but so is the average citizen - usually by way of saving music and pictures to a cloud-based storage service.
It appears that Nirvanix had the right idea, but, unfortunately, the company could not sustain the business model. A recent article reported that the company has filed for Chapter 11 bankruptcy.
Any of our Escondido readers who have seen previous posts here regarding Chapter 11 bankruptcy probably know that this type of bankruptcy filing is intended to be utilized when a business is going to attempt a reorganization and try to return to profitability. Nirvanix does not intend to pursue that route, opting inside to "wind down" operations. It appears that this company is going through Chapter 11 in order to stay open so that when pieces of the business are sold it is at "maximum value" for the company's creditors.
Source: U-T San Diego, "Nirvanix lands in bankruptcy court," Mike Freeman, Oct. 2, 2013