ARCserve Makes Sudden Cloud Services Exit: Analyzing the Unexpected Move

Overview

Arcserve, a well-known storage and data protection software developer, has unexpectedly halted sales of its Arcserve Cloud Services and Arcserve OneXafe Solo offerings. This has left managed service providers (MSPs) scrambling to find alternative solutions for their customers.

On February 12, Arcserve informed its MSPs via a memo that sales of the two aforementioned technologies were ending through the company’s website. Sales via distribution channels were set to continue until March 8. Support for these products is scheduled to cease on July 31.

Was The Decision Strategic?

Arcserve stated that the decision to discontinue these offerings was strategic. They also explained that it allowed redirecting resources and investments to better serve partners and customers. However, this change has been met with frustration from MSPs.

Some MSPs have expressed disappointment and disbelief regarding Arcserve’s sudden exit from the cloud services market. They argue that this abrupt change leaves them little time to find alternative solutions for their clients. Additionally, Arcserve has informed its MSPs of a necessary price adjustment across all applicable service tiers, effective from March 8, 2024.

In 2021, Arcserve acquired data protection developer StorageCraft, strengthening its MSP market presence. Despite this seemingly positive move, the recent decision has left many MSPs questioning their continued partnership with Arcserve.

In response to the situation, Arcserve’s executive vice president of worldwide sales and marketing, Vitali Edrenkine, has stated that the company is aware of this decision’s impact on its MSP partners and that it wasn’t made lightly. Arcserve plans to provide guidance and support to its partners as they migrate away from the affected cloud services.

ARCServe Future

As for the future, Arcserve will remain a channel-first company, focusing on maintaining their partner relationships and portfolio offerings. One of their offerings, ShadowProtect SPX, remains unaffected by these announcements. However, the transition may prove challenging for MSPs as they adapt to this new reality and look for other cloud service providers to meet their customers’ needs.