Blog
Back to your own data centre: when cloud repatriation pays off for companies
Storing data in clouds has long been ubiquitous - both privately and professionally. But while an individual uploads photos from the last family holiday to their private cloud, clouds have a much deeper significance for companies. A large number of companies of all sizes have long been relying on cloud-based solutions in order to benefit from their flexibility and scalability, among other things.
Despite the advantages of using the cloud, there are reasons why companies are increasingly taking a step back and moving workloads back to on-premises infrastructures. This step is known as ‘cloud repatriation’ or ‘cloud repatriation’. It is derived from the Latin ‘repatriare’, which means ‘to return to the fatherland’.
And that's exactly what it's all about: moving data back from external clouds to the company's internal IT infrastructure. In this article, we explain the reasons that motivate companies to repatriate and show how a hybrid strategy can be the optimal solution.
What is cloud repatriation?
Cloud repatriation describes the process by which companies move workloads, data or applications that were originally migrated to the cloud back to their own data centre. According to a recent study by cloud service provider Citrix (as of February 2024), 42 per cent of the 350 companies surveyed in the US have already repatriated some of their workloads from the cloud or are considering doing so. In a study commissioned by the US software company Cloudera (as of June 2023), three quarters of the 200 German companies surveyed would like to bring data back from the cloud to their own data centre.
There are many reasons for returning to on-premises infrastructures – including security concerns, unexpected costs and performance problems.
Why are companies switching back to their own data centre?
1. cost control
The flexible pay-as-you-go principle (usage-based pricing model) is one of the main reasons why companies decided in favour of the cloud in the first place. The costs are comparatively low, especially for smaller workloads and start-ups. However, the larger the data volumes, the more efficient the traditional, internal data centre becomes. In practice, the price transparency promised by the cloud is often less clear than expected. Hidden costs, unforeseen fees and the difficult management of cloud resources have prompted many companies to re-evaluate the financial efficiency of their own data centres.
2. Security and compliance
Security is the be-all and end-all of IT infrastructure. And although clouds are becoming increasingly secure, many organisations feel more comfortable storing sensitive data and workloads on their own servers. According to the Cloudera study, half of the companies surveyed have initiated cloud repatriation due to data protection concerns. Especially in the financial or healthcare sector, it is advantageous to keep control of data in-house.
3. Performance and control
Performance is another common reason why companies are switching back to on-premises. Processing large amounts of data in real time is a challenge for many companies. They realise that their cloud infrastructure cannot keep up in terms of performance and speed. 55 percent of respondents in the Cloudera study stated that performance issues caused them to bring workloads back from the cloud to their own data centre.
Companies want to have the best possible control over their IT environment. Although the cloud has many advantages, it is not always as adaptable as an on-premises infrastructure, which is better tailored to specific requirements.
Hybrid solutions as a model for the future
However, almost all companies do not see the return to on-premises as a complete departure from the cloud. Instead, they are focussing on hybrid solutions that combine the best of both worlds. This allows companies to utilise the flexibility, scalability and global availability of the cloud for certain projects while controlling critical data and workloads in the in-house infrastructure.
A hybrid model offers the option to choose between cloud and on-premises solutions - depending on the requirements.
Soft & Cloud supports companies in implementing these hybrid approaches. We offer more than just Microsoft original licences from remarketing, with which companies can achieve significant price advantages. Our extensive portfolio includes a high availability of audit-proof licences - including both the latest versions shortly after their release as well as older versions. The licence transfer process is TÜVIT-certified.
Conclusion
The trend towards cloud repatriation is growing and growing. It shows that the cloud is not always the final solution. Companies are moving their workloads and data to their own IT infrastructure, particularly for reasons of cost efficiency, security and performance. But instead of choosing between cloud and on-premises, a hybrid strategy is the perfect middle ground. With this combination, companies can utilise both the benefits of the cloud and the control and cost efficiency of their own infrastructures. Soft & Cloud also supports your company in developing and successfully implementing a flexible IT strategy and benefiting from the price advantages.
Used software costs you little. Asking costs you nothing.
Contact us.
