StackPath Shuts Down Operations, Liquidates Its Assets

DateJun 17, 2024

A major participant in the cloud services and edge computing space, StackPath, abruptly declared that it was going to liquidate its assets and cease all operations. With so many companies depending on StackPath’s infrastructure, the move represents a major change in the tech industry as they try to migrate their services and protect their data.

The former CEO and founder of SoftLayer, Lance Crosby, founded StackPath in 2015. A state-of-the-art Content Delivery Network (CDN) with Web Application Firewall (WAF) and Distributed Denial of Service (DDoS) protection was the company’s first offering, SecureCDN. This product, which established StackPath as a dominant force in the market, was created by combining technology that were purchased from other companies.

Emails explaining the quick decommissioning of all StackPath services were sent out on June 14, 2024, announcing the company’s closure. Clients were advised to quickly switch over to new services and create backups of their data. StackPath Edge Compute Services, Authoritative DNS Services, Object Storage, Network Transit Services, Datacenter Colocation Services, and Server Density Monitoring Services were among the services mentioned in the client letter as being impacted. One of StackPath’s partners, Wasabi Cloud, is providing help to users that need to move their storage accounts.

$400M in Funding

StackPath started out with big goals and impressive accomplishments. During its initial years, the company bought a number of businesses, such as MaxCDN and Fireblade, to provide a full range of services. In two funding rounds, StackPath raised close to $400 million. It solidified its place in the cloud services industry by launching its first wave of services by 2016. Its CDN capabilities and global reach were enhanced with the 2017 acquisition of Highwinds.

By enabling clients to install virtual machines and containers closer to end users, StackPath’s edge compute services were launched in 2018, aimed at decreasing latency and enhancing performance. Security and performance characteristics were further combined into a single service with the release of its secure edge platform in 2019. 

In August 2023, Akamai aquired select assets from StackPath, bolstering its CDN and cloud offerings. In March this year, Gcore purchased StackPath’s web application and API protection (WAAP) technology. The choice to close and sell off assets suggests that StackPath was having financial difficulties that it was unable to overcome.

The business shutdown is evocative of other disruptions in the sector, like Lumen’s withdrawal from the CDN market. Even while the CDN sector is still vital and will only become more significant, StackPath’s experience serves as a sobering reminder of the difficulties in maintaining tech competitiveness in a field that is changing quickly.

The demise of StackPath has had far-reaching consequences, affecting a great deal of enterprises and forcing a reassessment of tactics in the CDN and cloud services industries. Without a doubt, the tech community will consider this closure and learn from StackPath’s ascent and fall.  As StackPath closes down, on June 12, 2024, it will no longer be issuing customer invoices or offering technical assistance. Clients who have unpaid debts should use the company’s control platform to pay them.

 With StackPath, a chapter in the IT industry closes. The story of StackPath illustrates the dynamic and sometimes unpredictable nature of the technology industry, from its bold beginnings and rapid growth to its eventual downfall. 

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