SAP rescues staff from Cloud Company

Cogshead a company of the cloud has reportedly been unable to repay a million dollar loan and consequently becomes a victim of the banking disasters. One of its backers, SAP, has picked up both the IP and the employees. Existing customers have until April 30th to extract what they can and find a new provider – not necessarily an easy task!

This rapid failure of a cloud company brings a whole new process into consideration. We all know about Escrow agreements where should the normal software provider suddenly disappear there exists the option to pass the source code to others to support you. But what happens in the world of the cloud where you are reliant on not just the software but also the complete service (hardware, staff, software, storage, networking etc etc). Anyone taking the cloud option needs to think very carefully about the continuity options. In an earlier postI remarked on the challenges for the real world with SaaS. I thought it should be more widely known as Service and Software – this confirms my views.

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