The cloud is a good fit for modern applications, but most enterprise workloads are not exactly modern. Security concerns and unrealistic expectations are forcing companies to pack up.
Already 25% of surveyed organizations in the UK have already moved half or more of their cloud workloads back to on-premise infrastructures. This is evidenced by a recent study conducted by Citrix, a division of Cloud Software Group.
The study surveyed 350 IT leaders about their current approaches to cloud computing. The survey also found that 93% of respondents had participated in cloud repatriation projects in the past three years. That's a lot of repatriation. Why?
Security concerns and high project expectations were cited as the main motivations (33%) for moving some cloud workloads back to on-premise infrastructures, such as corporate data centers, colocation providers and managed service providers (MSPs).
Another important factor was failure to meet internal expectations - 24%. "Unmet expectations" describes most of the technology trends I've dealt with, including client/server, enterprise application integration, service-oriented architecture, and now cloud technologies. Respondents also mentioned unexpected costs, problems with performance, compatibility and downtime of services.
The most common motivation for repatriation that I have come across is cost. According to the survey, more than 43% of IT leaders found that moving applications and data from on-premises systems to the cloud cost more than they expected. Although not part of the survey, the cost of running applications and storing data in the cloud also turned out to be significantly more expensive than most businesses expected. The cost-benefit analysis of cloud versus on-premise infrastructure varies greatly by organization.
This should not be surprising. Cloud technologies have failed to live up to the hype that was associated with lower costs, better flexibility and better innovation.
The cloud is still the most convenient platform for building and deploying new systems such as generative artificial intelligence. However, when enterprises run workloads and datasets using traditional infrastructure patterns, such as business applications that process and store data in the same way as on-premises, the use of the public cloud has a negative impact on costs.
In other words, those who tried to use the cloud as a simple host for their workloads and didn't take any steps to optimize those workloads for their new location ended up with much higher bills than expected. Also, they didn't get any real benefit from using the public cloud for these particular workloads.
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