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Data Center News > Blog > Cloud Computing > Cloud repatriation: Why companies are leaving the cloud
Cloud Computing

Cloud repatriation: Why companies are leaving the cloud

Last updated: February 13, 2024 5:51 pm
Published February 13, 2024
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Why companies are leaving the cloud
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Don’t look now, however 25% of organizations surveyed in the UK have already moved half or extra of their cloud-based workloads again to on-premises infrastructures. That is in keeping with a current examine by Citrix, a Cloud Software program Group enterprise unit.

The survey questioned 350 IT leaders on their present approaches to cloud computing. The survey additionally confirmed that 93% of respondents had been concerned with a cloud repatriation undertaking up to now three years. That’s loads of repatriation. Why?

Price, not cloud

Safety points and excessive undertaking expectations have been reported as the highest motivators (33%) for relocating some cloud-based workloads again to on-premises infrastructures corresponding to enterprise information facilities, colocation suppliers, and managed service suppliers (MSPs).

One other important driver was the failure to fulfill inside expectations, at 24%. “Unmet expectations” describes most know-how tendencies I’ve been concerned with, together with shopper/server, enterprise utility integration, service-oriented structure. and now cloud. These surveyed additionally cited surprising prices, efficiency points, compatibility issues, and repair downtime. 

The most typical motivator for repatriation I’ve been seeing is price. Within the survey, greater than 43% of IT leaders discovered that transferring functions and information from on-premises to the cloud was dearer than anticipated. Though not part of the survey, the price of working functions and storing information on the cloud has additionally been considerably dearer than most enterprises anticipated. The fee-benefit evaluation of cloud versus on-premises infrastructure varies drastically relying on the group. 

None of this ought to be stunning. The cloud had no approach of delivering on the hype of 2010 to 2015 that gushed about decrease prices, higher agility, and higher innovation.  Effectively, two out of three will not be unhealthy, proper?

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The price of the cloud is the place issues normally go off the rails. The cloud continues to be essentially the most handy platform for constructing and deploying new methods, corresponding to generative AI, and it additionally has the most recent and best of just about every thing. Nonetheless, when enterprises run workloads and information units utilizing conventional infrastructure patterns, corresponding to enterprise functions that course of and retailer information the identical approach they did when on-premises, there’s a damaging price impression to utilizing a public cloud.

In different phrases, those that tried to make use of the cloud as a easy host for his or her workloads and took no steps to optimize these workloads for his or her new location had a lot bigger payments than anticipated. Furthermore, they didn’t acquire any actual benefit by leveraging a public cloud for these particular workloads.

The cloud is an efficient match for contemporary functions that leverage a bunch of providers, corresponding to serverless, containers, or clustering. Nonetheless, that doesn’t describe most enterprise functions.

Don’t really feel sorry for the general public cloud suppliers

The cloud suppliers could also be dropping workloads and information units that by no means ought to have been on a public cloud within the first place, however they may nonetheless take pleasure in explosive development. Thank the AI gods that shone down upon them the truth that they’re essentially the most handy place to construct and host generative AI functions and information.

Any losses from repatriation might be shortly changed by the huge quantities of infrastructure wanted to construct and run AI-based methods. This contains new functions in addition to present functions that might be AI-enabled. Enterprises are additionally increasing their use of the cloud as a result of AI methods are processor and storage pigs and want state-of-the-art frameworks, genAI ecosystems, and enormous language fashions that cloud suppliers are completely happy to host. Cha-ching!

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As I’ve stated just a few instances right here, cloud conferences have grow to be genAI conferences, which can proceed for a number of years. The cloud suppliers perceive the place their bread goes to be buttered.

That is all wholesome if you happen to ask me. I might be involved if enterprises understood that the cloud was draining cash from IT with no return and saved transferring in that path. Enterprises are course-correcting for some functions and information units that by no means ought to have moved to the cloud within the first place. They didn’t hassle to do the mathematics earlier than making the transfer. I did, and now they’ve an costly “I informed you so” coming.

Copyright © 2024 IDG Communications, .

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Price, not cloudDon’t really feel sorry for the general public cloud suppliers

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