The Hyper-converged infrastructure startup Maxta is closing its doors – after being unable to obtain funding and make progress in the face of a solidifying HCI market.

Businesses are placing their bets on hyper-converged infrastructure to fulfill their business-critical enterprise applications and data center simplification needs, according to Gartner’s new Magic Quadrant for Hyper-Converged Infrastructure.

Hyper-converged vendors are expanding their strategy to embrace hybrid and multi-cloud deployments, as well as offering new software-only and reference architecture options. The IT research firm predicts that by 2022, 75 percent of enterprise generated data will be created and processed outside a traditional, centralized data center or cloud, up from less than 10 percent in 2018. To accommodate this shift, HCI leaders are beginning to target the needs of remote offices and edge environments.

According to an article in The Register

One source said 65 people were given their final pay checks, and told their healthcare benefits are ending. Two of the other sources added that staff were told of their fate at an all-hands meeting at 3pm on Monday this week – that the biz was shutting up shop, and letting them go with no special payoff packages. A Maxta spokesperson told us: “Maxta has had a reduction in force. Considering various strategic options.”

Maxta was founded up in 2009 raised funding of $10m and $35m in 2013-14. Intel Capital, Tenaya Capital and Andreesen Horowitz were two key investors.