Cloud Repatriation and Why Businesses are Leaving Public Cloud

Cloud Repatriation and Why Businesses are Leaving Public Cloud post image

Despite the continued efforts of businesses to migrate to the public cloud, a recent trend of ‘cloud repatriation’ has signalled that the move might not be for everyone.

While migration to the public cloud has been shown to deliver many short-term savings, some businesses have identified longer-term implications to their cost-benefit ratio, which they have addressed through a migration back to on-premises or private cloud infrastructure. 

A 2022 survey by 451 Research showed that 54% of surveyed businesses had moved all or part of their workloads back to local infrastructure as part of a ‘repatriation’ effort.

The reasons for cloud repatriation are varied, but they often revolve around three key factors: cost, performance, and control.

Why Leave the Public Cloud?

While the public cloud has undoubtedly transformed the way companies operate, enabling greater agility, scalability, and cost efficiency, some businesses claim it is not a one-size-fits-all solution.

For some companies, the cost savings anticipated from a move to the cloud may not materialise as expected due to hidden expenses, data egress fees, or the cost of managing multiple cloud environments.

In other cases, companies may find that the performance of their applications and services is not as robust in the cloud as it was on-premise, or within a smaller private cloud.

Businesses might also choose cloud repatriation to regain control over their infrastructure and data, particularly in industries with strict regulatory and compliance requirements.

What Does This Mean?

The fact that companies are undertaking cloud repatriation does not signify that the public cloud is a failing technology. Nor does the phenomenon indicate that it is the right course of action for all businesses, or that it would provide more cost-savings versus cloud migration.

It’s even arguable that those advocating most for cloud repatriation are on-premise server vendors with something to gain from businesses making the switch.

The key factor highlighted by the discussion around cloud repatriation is the importance of understanding your company’s specific technology needs and developing an effective strategy, whether you’re moving to the cloud or switching back to on-premise.

Companies seeking an optimal cost-benefit ratio from their technology must assess whether a public cloud, private cloud, on-premise, or hybrid solution best aligns with their objectives, budgets, and performance requirements.

If they are considering cloud repatriation, they must accurately identify whether the potential long-term cost saving outweighs the shorter-term resource and time commitment of migrating back to local infrastructure.

No matter which path you take, developing a comprehensive cloud strategy is critical for mitigating potential risks and ensuring successful migration or repatriation.

If you’re looking for a technology partner to assist with your cloud project, speak to the team at YourShortlist to receive a free, bespoke list of providers suited to your specific needs.