Glum Economy Brings On Good Times for Joyent

UPDATED: Joyent, a Sausalito, Calif.-based cloud storage infrastructure startup, says the economic downturn is bringing on the good times. Since August its annualized revenue is up more than 25 percent. Is Joyent’s good fortune a sign utility computing will get a boost from the glum economy?
The 19-employee company provides scalable cloud storage that started out as web hosting provider has diversified into providing cloud services, becoming a default infrastructure provider to many social applications, notably the Facebook platform. Joyent got a start with a seed round four years ago and is cash-flow positive, according to Joyent VP Rod Boothby.
A very informal survey of developers at Microsoft’s Professional Developers Conference earlier this week suggested there’s still broad anxiety around the security and reliability of cloud services, including storage. But companies feeling the pinch of the credit crisis may have to forgo new, large data centers — or even just a handful of servers — and instead look to cloud-based services¬†storage is and find them to look a lot more appealing. Cloud storage infrastructure contracts don’t present the immediate or longer-term capital or staffing commitments that new server farms demand.
Economies of scale presented by cloud vendors could trump immediate concerns about reliability, but such concerns are likely to persist, and vendors will be differentiated by how they handle data security integrity.