It sounds like they're being pretty respectful to their existing user base. Despite facing growing costs of their updated infrastructure they're still keeping existing cloud projects (despite this misleading post title). They cite not receiving support and funding from larger orgs using their work for free. They're keeping it open to new users to engage with their tool using their own infrastructure. The fact that their own article headline is "Free is not always so free" suggests they are painfully aware of the unfortunate circumstances of the decision. If I was in their position I don't know if I could find a more tactful response to the situation.

It sounds like they had plans for expansion if they were granted the capital they expected, but it sounds like that funding never came.