Why organisations are repatriating workloads from the cloud
Cloud computing is seen as a promising solution to today's IT challenges, but many organisations are finding that the reality does not always live up to their expectations. This is leading to a growing trend of cloud repatriation, where workloads are moved from public cloud environments back to on-premises infrastructure or private clouds.
Unexpected costs: A key driver of this return to on-prem, also known as cloud repatriation, is unexpected cost overruns. According to an IDC survey, nearly 50% of cloud users reported spending more on cloud services in 2023 than originally planned. These budget overruns are often due to the complexity of cloud environments, rising costs for third-party services and other external factors. Organisations are finding that on-premises solutions often offer better cost control.
Performance bottlenecks: In addition, many applications with high performance requirements, such as engineering and AI workloads, struggle in public cloud environments where performance bottlenecks are common.
Compliance concerns: Security and compliance concerns are also critical factors, especially in highly regulated industries such as finance and healthcare, where protecting sensitive data is paramount.
Complex management: The complexity of managing multi-cloud and hybrid cloud environments can also reduce the benefits of using the cloud. Organisations often struggle to integrate different cloud services and ensure consistent security policies.
Cloud repatriation is a growing trend, but only 8-9% of organisations plan to move all their workloads back from the cloud. Many are instead adopting a selective approach, moving specific workloads back on-premises. Larger organisations are more active in this regard as they have more resources and more complex requirements. Overall, many organisations are moving toward hybrid IT strategies to achieve a balanced distribution of workloads across public and private cloud environments, as well as toward on-premises infrastructure.
- Storm Clouds Ahead: Missed Expectations in Cloud Computing (Daniel Saroff, IDC-Blog, 28.10.2024)
- The Big Cloud Exit: Warum HEY und Basecamp die Cloud verliessen (DE, aspectra-Blog 18.01.2024)
- Dedicated Private Clouds at aspectra