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Some companies are withdrawing from the public cloud and running workloads on-prem again. Cost, performance, compliance and management are the main reasons. IDC blogged about a growing trend
Some companies are withdrawing from the public cloud and running workloads on-prem again. Cost, performance, compliance and management are the main reasons.
IDC blogged about a growing trend in the IT landscape: regression. This term refers to the return of workloads from the public cloud to an on-premises or private cloud. This trend is part of a broader industry movement toward hybrid, multi-cloud IT strategies.
Large organizations are at the forefront of this development. This is not illogical, as they have more resources, larger workloads and more complex IT environments.
A few years ago, the public cloud promised to be a paradise for all kinds of IT workloads. Cloud has been synonymous with scalability, flexibility and cost savings. These promises were not fulfilled in reality. IDC identifies four promises where the public cloud falls short of expectations and are also the top four reasons why companies are migrating.
The costs are stated above. In 2024, every company seems to realize that the public cloud is not always cheaper. Half of companies will have overspent on cloud technology by 2023, and nearly 60 percent expect to overspend by 2024, according to figures from IDC. Although on-premise infrastructure also comes with costs, companies feel they can better manage costs.
Reason two: performance and latency. IDC states that certain workloads do not thrive in the public cloud. Especially for workloads where latency can have a big impact, on-premise is usually the better solution. Other reasons for moving workloads from the cloud include security and compliance, as well as reducing complexity in IT management.
Companies like HPE and Nutanix rub their hands reading IDC’s analysis. However, according to IDC, the increasing trend towards repatriation does not mean that companies are turning their backs on the public cloud en masse. Less than ten percent would consider a full move back from the cloud. The cloud giants’ quarterly figures show that AI is a great reason to continue investing heavily in public cloud infrastructure.
Still, retracement could pose a threat to hyperscalers if this trend continues. Market leader AWS has already admitted this to the British market regulator. Is the golden age of the public cloud slowly coming to an end?
Source: IT Daily
As an experienced journalist and author, Mary has been reporting on the latest news and trends for over 5 years. With a passion for uncovering the stories behind the headlines, Mary has earned a reputation as a trusted voice in the world of journalism. Her writing style is insightful, engaging and thought-provoking, as she takes a deep dive into the most pressing issues of our time.
