Over the years, companies have experienced several significant changes in their attitudes towards IT infrastructure. However, the public cloud has long been hailed as the ideal solution for those seeking rapid scalability and flexibility.
Gartner predicts that end-user spending on the public cloud will exceed $675 billion this year, and its popularity continues. The emergence of modern technologies such as generative AI means that reliance on cloud computing is likely to continue its upward trajectory.
However, some companies are actively bucking this trend and openly discussing moving data and applications out of the public cloud in a move commonly known as cloud repatriation.
Vice President of Advanced Solutions at GTT.
Going against the murky current
As an increasing number of companies rethink their strategies and move certain workloads to on-premises, private, and hybrid environments, the trend toward cloud repatriation (or declouding) may be gaining momentum. Companies are pursuing cloud repatriation initiatives due to costs, such as 37 Signals, which says it expects to save $7 million in cloud computing costs over the next five years by moving workloads from the cloud to its own private data centers.
This shift is being driven by several factors that reflect the changing needs and challenges that businesses face when it comes to cloud computing. For example, costs can be unpredictable and difficult to manage in the cloud. While cloud services are often marketed as cost-effective, many businesses face unexpected expenses, such as network traffic costs or charges for moving specific services. Over time, these can add up significantly and must be balanced against the many other merits of why workloads were moved to the cloud in the first place.
Another concern that many organizations struggle with when it comes to the public cloud is dependence on a technology provider. This can happen when a company becomes too reliant on a single cloud provider for its services. It can make it difficult and expensive to switch to another supplier, limiting flexibility and potentially creating other challenges in terms of integration and innovation.
The move away from the cloud also includes some new workloads that you might assume would go to the cloud, but don’t. This may occur, for example, in highly regulated industries such as finance or healthcare, where some sensitive workloads have not been moved to the public cloud due to tighter controls over data and security protocols. Because these systems and data still need to interact with the rest of the business, scenarios arise where placing new workloads outside the cloud, adjacent to others, makes more sense than growing the cloud estate.
The path to repatriation
Regardless of the reasons for moving away from the public cloud, the path to repatriation can be complex to navigate. Whether it’s technical or talent issues, financial costs, or compliance challenges, companies making the change must be prepared to spend time planning and executing an effective strategy. Within this strategy there are three areas that require special attention: observability, compliance, and employing a holistic technology strategy.
Observability is crucial in cloud repatriation because to move data and applications internally, a company must understand it and how it is used. Only in this way can you guarantee a smooth and effective transition. For example, there may be shadow IT or AI that employees use to bypass IT policy and help them get their work done faster. Sometimes these technologies store data in a cloud service, so businesses should be aware of them before making the switch. By leveraging observability, organizations can mitigate risks, optimize their infrastructure, and achieve successful repatriation that meets their strategic objectives.
Compliance is also important as it is a major area of focus for European and UK regulators, with new and emerging regulations such as DORA and NIS2 coming to the fore. Companies should have a solid understanding of the types of data that are stored in the cloud services they use and what special processes are needed to move this data to a private or on-premises environment. Ensuring compliance throughout the repatriation process is essential to avoid legal penalties, maintain customer trust, and safeguard data integrity.
Another key piece of the puzzle is creating a holistic technology strategy. Companies should avoid thinking only about where data will be housed at the end of the migration. Instead, they should view the technology stack as a constantly evolving operation where planning for the future is as important as planning for the present. The widest radius (the network that will transfer data back and forth) must be secure, fast enough, and usable. A comprehensive approach is essential when repatriating to maintain operational efficiency and optimize long-term performance.
After this, as data returns to the private cloud, essential security plays a key role in this strategy. Protecting data with firewalls and DDoS protection from the start means the risk of breaches and vulnerabilities is reduced, and IT teams can continue to repatriate it without having to dedicate additional resources to threat defense later.
A company may not know the solution, but it should consider using virtual data centers (VDCs) as part of its repatriation strategy. This is where you can get the benefits of the public cloud, while having the predictable costs and control of a private cloud. Managing workloads in VDC and connecting to public clouds means data remains secure and compliant, but accessible as on-premises computing.
Stay one step ahead
While the public cloud remains an integral part of most IT strategies, the shift toward repatriating specific workloads underscores the importance of flexibility and control in the ever-evolving digital landscape.
When it comes to whether or not to cloud, there is no right or wrong answer. Each company should do what works best for them. However, for those who decide to take this journey, thinking about observability and compliance while taking a holistic approach to technology and talent resources from the beginning can help make the road smoother.
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