Data protection and management firm Iron Mountain is to wind down its public cloud storage business and shut it for good in the first half of 2013.
The firm stopped accepting new customers from 1 April, but will service existing customers until 2013, according to a Gartner research note.
"Virtual File Store customers that stay with Iron Mountain will be transferred to a higher-value offering, File System Archiving, in 2012," Gartner said.
"The new offering will be a hybrid that leverages policy-based archiving on site and in the cloud with indexing and classification capabilities."
Meanwhile, Archive Service Platform customers will not be offered the choice to upgrade and Iron Mountain will help them to move to another provider or return their data.
Gartner analysts had previously predicted that less than a third of cloud investments would see a return on investment in 2011. The research firm also pointed out that profit considerations influenced Iron Mountain's decision to drop the cloud service.
Iron Mountain is the third vendor to quit the cloud storage market in the past 12 months, following startup firm Vaultscape and EMC, which closed its Atmos Online service owing to conflicts with ISPs.
All three service providers had strategies that focused purely on delivering cloud storage unaccompanied by any cloud compute services.
Public cloud infrastructure-as-a-service offerings have had modest uptake, according to Gartner, and only Nirvanix and Zetta remain as pure-play public cloud providers of network attached storage.
Iron Mountain sent a statement through to V3.co.uk confirming its decision to exit the public cloud market as offering had a seen modest level of adoption.
"Iron Mountain did recently notify customers of our Virtual File Store and Archive Service Platform that we are retiring these two commodity cloud-storage solutions," the firm said in a statement.
"This decision only affects those using Virtual File Store, a low-cost cloud storage option for inactive files, and technology partners who use the Archive Service Platform as a general purpose cloud for storing their customers' data."
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