Australian-based cloud computing provider Ninefold has announced that it will be shutting down its operations.
In a news announcement on its website, the company said it has decided to discontinue its operations after realising that it would cost the business significantly more to take its existing platform to the "next level".
"After an evaluation of the underlying technical platform, much consideration and deep reflection, we have decided not to embark on this journey," the company said on Monday.
The company said it is no longer accepting any more signups to its platform, and its last day of operations will be January 30, 2016.
In the meantime, the company will transition existing customers to parent company Macquarie Telecom's cloud services or to an alternative provider.
"We appreciate that for some of our customers this will be a significant inconvenience and we will do what we can to make it easy," Ninefold reassured.
Since launching five years ago, Ninefold's main selling point in the market has been its locally hosted public cloud platform. However, key players such as Amazon Web Services and Microsoft Azure have since opened their own datacentres in Australia, and at typically lower prices than Ninefold's offerrings.