Govind Davis, a Coghead customer, didn’t see its sudden closing coming. Enticed by the cloud computing vendor’s low-cost service, Davis built some of his customers’ applications using Coghead’s online database. Now his company, MCF Technology, has nine weeks to extract data from Coghead and build new applications for it, some of which will run on Intuit”s QuickBase, also in the cloud.
Amid the growing interest in cloud computing, Coghead’s collapse provides a reality check. SAP is providing a safety net for Coghead’s intellectual property and its employees, but Coghead’s customers are left to fend for themselves.
The promise of cloud computing has launched many startups. It would be unfair to link them to Coghead just because they’re startups, as some of them may grow into huge success stories. Still, others will not. And with any cloud computing effort, it’s up to users to have an emergency exit strategy in place. Just in case.
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