Why Companies Are Leaving the Cloud
InfoWorld reports:Don't look now, but 25% of organizations surveyed in the United Kingdom have already moved half or more of their cloud-based workloads back to on-premises infrastructures. This is according to a recent study by Citrix, a Cloud Software Group business unit. The survey questioned 350 IT leaders on their current approaches to cloud computing. The survey also showed that 93% of respondents had been involved with a cloud repatriation project in the past three years. That is a lot of repatriation. Why? Security issues and high project expectations were reported as the top motivators (33%) for relocating some cloud-based workloads back to on-premises infrastructures such as enterprise data centers, colocation providers, and managed service providers (MSPs). Another significant driver was the failure to meet internal expectations, at 24%... Those surveyed also cited unexpected costs, performance issues, compatibility problems, and service downtime. The most common motivator for repatriation I've been seeing is cost. In the survey, more than 43% of IT leaders found that moving applications and data from on-premises to the cloud was more expensive than expected. Although not a part of the survey, the cost of operating applications and storing data on the cloud has also been significantly more expensive than most enterprises expected. The cost-benefit analysis of cloud versus on-premises infrastructure varies greatly depending on the organization... The cloud is a good fit for modern applications that leverage a group of services, such as serverless, containers, or clustering. However, that doesn't describe most enterprise applications. The article cautions, "Don't feel sorry for the public cloud providers." "Any losses from repatriation will be quickly replaced by the vast amounts of infrastructure needed to build and run AI-based systems... As I've said a few times here, cloud conferences have become genAI conferences, which will continue for several years."
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