Davis is still a huge proponent of cloud computing -- but a wiser one. "We'll be a little more wary with startups, as we realize the risk of going with one can be real," Davis said.
On Tuesday, a few days after Coghead said it was shutting down, a more widely known cloud vendor -- Google (Nasdaq: GOOG) -- had a brief outage of its Gmail service because of a data center problem. Undaunted, Google announced that same day that it will start charging for Google App Engine, its Web-based application platform (or platform as a service).
No one should expect cloud computing to be infallible; software and servers never are, no matter where they reside. But Coghead's closure lends sobriety to the excitement surrounding cloud computing, which has attracted entrepreneurs big and small and fueled a new wave of venture capital in recent years.