Cloud computing is proving to be a great ally for many companies and organizations when it comes to storing information and working with data. But in certain cases, which are increasingly numerous, the advantages are outweighed by the disadvantages. Among them, for the expenses. Although cloud computing initially promised notable cost savings, many companies have to invest more and more to be able to work with the cloudeliminating any past signs of savings.
This means, according to IDC, that the cloud does not meet its expectations, and that at least for certain workloads, the tendency to repatriate them from the cloud and run them again in local or private cloud environments is increasing. Meanwhile, almost half of the entities had to invest in the cloud in 2023 more than they expected, and 59% expect their cloud investment budgets to be exceeded again in 2024.
Much of the high cloud costs faced by many companies are due to the complexity of cloud environments, as well as unforeseen factors that make predicting cloud costs accurately very complex. This can lead to management problems that result in both over-provisioning of resources and the contracting of assets that end up unused or underused.
For this reason, the number of companies considering returning workloads to local or private networks is increasing. But in addition to costs, they also do it for other reasons: performance and latency problems, which make it difficult for applications that need to process information in real time to operate.
On the other hand, they also lead to AI-related and technical workloads, which often encounter bottlenecks in public cloud environments, affecting their performance.
Another cause for concern is questions about security and regulatory compliance. Especially in sectors such as finance or healthcare, where data privacy is crucial. In addition, there is the greater operational control that comes with having the workloads in your own infrastructure, with also more possibilities of adapting the systems to specific needs, as well as optimizing the use of resources.
Of course, although repatriation is a growing trend, for now there is no mass migration of public cloud platforms. Only 8% or 9% of companies plan to carry out a full data repatriation. The most common thing is for companies to return specific elements of their workloads to local or private clouds.
These include production data, backup processes, and computing resources. According to IDC, Larger companies are more likely to repatriate their workloads locallywhile the small ones are less active in this aspect. This is because they have many resources to do so, as well as detailed strategies for their workloads, something that small companies do not have.
Large cloud providers still don’t seem too concerned about this trend, but the fact that it is becoming more widespread among large companies may end up affecting their results sooner rather than later.
