Nirvanix, IBM’s SmartCloud storage service from San Diego last month told customers and partners that it will be shutting down on 30th September. The customers were given just 2 weeks to migrate their data and now the company is filing for bankruptcy.

The company released this information on a post on its website that revealed chapter 11 bankruptcy filing. Nirvanix gave its customers a further 2 weeks to remove their data from its service. The new deadline for data removal is 15th October.

The website post indicates that Nirvanix sought to file a voluntary chapter 11 bankruptcy protection in order to maximize value for its creditors and search for alternatives to provide the best possible transition for its customers.

The initial indication of Nirvanix bankruptcy came as a surprise to many people. The company was formed in 2007 and had partnerships with Dell and IBM. The company was lauded for its superb funding and technical prowess.

The bankruptcy issue was first reported on the wall street journal and this week’s announcement provides some sort of closure for people who have a keen interest on the company. Nirvanix has specifically mentioned Google storage, Amazon S3, Microsoft Azure and IBM SoftLayer as possible replacements.

The bankruptcy paperwork indicates that Dell marketing L.P, formerly known as storage outfit EqualLogic is Nirvanix’s largest creditor. Other creditors include Gartner, Nimsoft and

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