Although most organizations use cloud computing to some extent, there is a growing trend toward cloud repatriation, which involves conducting a reverse migration to move applications out of the cloud and back to on-premise infrastructure.
What is Cloud Repatriation?
Cloud computing is everywhere, touching our business and personal lives through almost all digital experiences. A recent study found that 98% of businesses have some or all their data and applications in the cloud, up from 91% in 2020. This nearly universal adoption was driven by the many benefits of the cloud: scalability and flexibility, remote access and collaboration, advanced security, and robust disaster recovery services, among them.
It might be surprising to learn that many companies are now interested in significantly reducing their cloud footprint, reversing the steady growth of cloud migrations over the past several years. This trend is known colloquially as ‘cloud repatriation.’ These reverse migrations involve moving data and workloads from the cloud back to on-premise infrastructure, either in a company’s data center or a co-location/hosting service.
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Reasons for Cloud Repatriation
So, with all of the expected benefits of the cloud in mind, why are businesses moving applications out of the cloud and investing time and resources in repatriation? These reasons may include:
Cost Optimization
One of the main reasons cloud computing is an attractive alternative to on-premises solutions is the low up-front investment required. Companies that run applications and store data in the cloud don’t need to purchase their own servers or hire internal staff to maintain and manage hardware. For a fast-growing company, the easy scalability of cloud services is also attractive.
However, many businesses discovered that while cloud is easy to scale, the expense of maintaining a high-growth cloud environment can erode the cost benefits gained at the beginning. This, combined with fluctuating costs of storage, ingress/egress, licensing, networking, and cloud management often lead to cloud costs spiraling out of control.
Performance
As technology is embedded into all aspects of business across industries, the cost of performance issues is greater than ever. In IT (Information Technology) services, downtime costs an average of $5,600 per minute. In the auto industry, that climbs almost 10x higher to $50,000 per minute.1 And in healthcare, the monetary costs are compounded by the fact that an interruption in service can be an actual life-or-death situation.
These concerns are leading some businesses to consider repatriation. Repatriation is expected to improve control and security while reducing costs and complexity.
Privacy and Compliance
With highly publicized data breaches happening every day, some businesses are looking for new ways to protect customer data privacy and ensure regulatory compliance. Moving data from the cloud to an on-premises environment can allow an organization to create strict protections and access controls, which may be difficult to ensure and maintain in the cloud.
Although cloud providers implement robust security measures, some businesses have specific compliance requirements or data privacy concerns that are better managed on-premises or in a private hosting environment.
Misconfiguration
Businesses operating under performance or timeline pressures have experienced less-than-optimal cloud implementations. Companies under pressure don’t have the time or resources to plan effectively. Applications that seemed at the outset appropriate for migration to the cloud have too often needed refactoring to operate effectively.
Storage Needs
Often, companies with large amounts of data find it more efficient and cost-effective to store that data on owned servers rather than paying for escalating storage costs, which are often charged on top of cloud subscription fees. Healthcare and finance are two industries that are incorporating enormous amounts of data into their business processes. And as more companies utilize AI in their applications, the amount of data used in business processes will continue to grow.
Existing Investment
Cloud repatriation allows businesses to leverage substantial, existing IT investments in on-premise infrastructure to maximize the value of these investments. This includes investment in human resources as well. If the available technical skills on a team skew to on-prem management, it can be more effective to match equipment to skills rather than replace talented people during a cloud skills shortage.
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Challenges of Cloud Repatriation
While there are many different factors that can lead a business to consider cloud repatriation, a reverse migration can be complex. Transferring large volumes of data, especially if it is varied in type or lacks standardization, can be both time consuming and technically challenging. Costs associated with cloud repatriation include setting up on-prem infrastructure which requires significant capital expenditure, as well as substantial costs associated with migration. Specialized resources tools and services and the indirect cost of disruption and downtime add to the investment.
Cost Implications
While cost control may be a factor in an organization’s consideration of a reverse migration, there are also costs associated with cloud repatriation. First, an initial investment is required: setting up the needed on-premises infrastructure often requires significant capital expenditure.
Then, substantial costs, both direct and indirect, can be associated with migration. These can include the need for specialized resources, tools, and services and the indirect cost of disruption and downtime.
Operational & Leadership Challenges
Managing and maintaining on-premises infrastructure requires skilled personnel and ongoing investment. This means a long-term commitment to sourcing and retaining the people who can manage and maintain the equipment and investing in optimization and continuous improvement.
Additionally, ensuring compatibility between existing applications and new infrastructure can be complex. For a business that has invested in a large-scale cloud migration and ongoing optimization efforts, reversing those strategies requires strong direction and commitment from leadership. Staff may require training to manage and operate the new infrastructure effectively. Moving from the cloud to on-premises may require a shift in organizational culture, processes, and strategies.
Security
Ensuring robust security measures during the transition from cloud to on-premises is complex but essential to protecting sensitive data. Maintaining compliance with industry regulations and standards is also challenging. Keeping a paper trail to prove compliance during a complex repatriation effort is an additional layer of consideration that will require investment of resources throughout the process.
Downtime and Disruption
The migration process can cause downtime and disrupt business operations, which is not only expensive but can also impact productivity and customer satisfaction. Minimizing disruption and ensuring business continuity during a transition requires careful planning and execution.
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Cloud repatriation highlights the changing nature of IT strategies, as organizations attempt to balance cost, performance, and control. As much as the cloud provides easy scalability and flexibility, repatriation reminds us that in technology, there is no one-size-fits-all solution. For some organizations, bringing workloads back on-premise unlocks new efficiencies and better aligns with their goals.
That said, repatriation isn’t without its challenges. It requires a great deal of planning and investment, along with strong leadership and strategic vision, to navigate the complexity of a reverse migration.
Whether you are considering staying in the cloud, repatriation, or a hybrid model, success comes from evaluating your organization’s unique needs and developing a strategy that optimizes resources while driving growth and innovation.
Navigating this complexity doesn’t have to be daunting. At Vervint, we specialize in helping businesses make informed decisions about their cloud journey—whether that’s optimizing existing cloud environments, transitioning to a hybrid model, or executing a seamless repatriation. Our expert team ensures that every migration or reverse migration delivers maximum value, aligns with your objectives, and positions your organization for growth.
The key to success is having the right partner. With Vervint by your side, you can confidently navigate the ever-evolving technology landscape and build a strategy that works for today and tomorrow. Contact us any time! We’d love to hear from you.
1 https://www.pingdom.com/outages/average-cost-of-downtime-per-industry
