Over the years, companies have gone through several significant changes in their attitudes towards IT infrastructure. However, the public cloud has long been hailed as the best solution for those looking for rapid scalability and flexibility.
With Gartner predicting that end-user spending on public cloud will exceed $675 billion this year, 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.
Still, some companies are actively bucking this trend and openly discussing moving data and applications away from the public cloud in a move commonly known as cloud repatriation.
VP for advanced solutions at GTT.
Going against the cloudy grain
As an increasing number of companies rethink their strategies and move certain workloads back to on-premise, private and hybrid environments, the trend of cloud repatriation – or de-shadowing – may be gaining momentum. Companies are undergoing cloud repatriation initiatives due to cost, such as 37 Signals, which states 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 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 encounter unexpected expenses, such as network traffic costs or fees for moving specific services. Over time these can add up significantly and must be balanced with the many other benefits of why workloads moved to the cloud in the first place.
Another concern many organizations struggle with when it comes to public cloud is technology vendor lock-in. This can happen when a business becomes too dependent on a single cloud provider for their services. This can make switching to another provider difficult and costly, limiting flexibility and potentially leading to 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 can occur, for example, in highly regulated industries such as finance or healthcare, where some sensitive workloads have not moved to the public cloud due to tighter controls over data and security protocols. Since these systems and data must still interact with the rest of the enterprise, scenarios arise where it makes more sense to place new workloads off-cloud, alongside the others, than to expand the cloud estate.
The road to repatriation
Regardless of the reasons for moving away from the public cloud, the road to repatriation can be complex to navigate. Whether it’s technical or talent issues, financial costs or compliance challenges, companies making the switch should 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 the application of a holistic technology stack strategy.
Observability is critical in cloud repatriation because in order to move data and applications internally, a business must understand them and how they are used. Only then can you ensure a smooth and efficient transition. For example, there may be Shadow IT or AI that is used by employees to circumvent IT policy and help them get their work done faster. Sometimes these technologies will store data on a cloud service, so companies need to be aware of them before making the switch. By leveraging observability, organizations can mitigate risk, optimize their infrastructure, and achieve a successful repatriation that meets their strategic goals.
Compliance is also important as it is a major focus area for European and UK regulators with new and emerging regulations such as DORA and NIS2 coming to the fore. Businesses should have a strong understanding of the types of data stored on the cloud services they use and what specific processes are required to move that data to a private or on-premises environment. Ensuring compliance throughout the repatriation process is essential to avoid legal penalties, maintain customer confidence and protect data integrity
Another important piece of the puzzle is creating a holistic technology stack strategy. Companies should avoid thinking only about where the data will be hosted at the end of the migration. Instead, they should see the tech stack as a constantly evolving operation, where planning for the future is as important as planning for today. The wider radius – the network that moves data back and forth – must be secure, fast enough and fit for use. A comprehensive approach is essential in repatriation to maintain operational efficiency and optimize long-term performance.
After this, as data is brought back to the private cloud, it is important that security plays a central role in this strategy. Securing data with firewalls and DDoS protection from the start means that the risk of breaches and vulnerabilities is reduced, and IT teams can continue their repatriation without having to devote additional resources to threat defense later.
A solutions company may not be aware, but should be considered, as part of their repatriation strategy is the use of virtual data centers (VDCs). This is where the benefits of the public cloud can be realized while having the predictable costs and control of a private cloud. Managing workloads on VDCs and connecting to public clouds means that data remains secure and compliant, but available as local computing.
To be one step ahead
While the public cloud remains an integral part of most IT strategies, the shift toward repatriation of specific workloads underscores the importance of flexibility and control in the ever-evolving digital landscape.
When it comes to whether or not you should decloud, there is no right or wrong answer. Each business must do what works best for them. But for those who decide to take on this journey, thinking about observability and compliance while taking a holistic approach to the technology stack and talent resources from the start can help make the road less bumpy.
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