StorageNetworks fires all employees, closes down

StorageNetworks Inc., the once high-flying storage service provider, is liquidating operations. The company this week fired most of its employees and announced that CEO Paul Flanagan was leaving immediately.

The troubled company had been on the market for months but failed to attract a buyer. The only thing left now is a small team whose job is to hammer closed the shutters.

In its heyday, StorageNetworks provided online storage for a bevy of primarily dot-com companies that didn’t have their own storage resources and its stock reached US$154 per share.

A number of similar service providers have gone out of business, including StorageProvider, SANrise and Scale8. Several companies remain, although most have tweaked their business models.