Ep.io is closing down, recommending Heroku
I think you'll see a slew of these closures.- The PaaS space is getting squeezed on all directions; from the bottom by CloudFoundry and from the top from people like Heroku, Amazon and from startups like Parse chopping off verticals.  Building a proper PaaS platform is a lot of work - tons of little edge cases, security concerns, scale concerns. All of it is very non-trivial and you can't just focus on one little scenario and hope to get away with it.I suspect you'll see more people going the Phpfog->AppFog route, give up the general PaaS platform to CloudFoundry/Amazon/Heroku and try and move up the stack to provide value on top. I have no idea how DotCloud is doing but I'll be very surprised if they're doing well. I I love the team but I think they are in a tough spot.