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Cloud Repatriation: A Silver Lining or a Storm Brewing?

By Dick Weisinger

Cloud repatriation, the process of moving data and applications from cloud providers back in-house, is gaining momentum. As technology evolves, companies are increasingly bringing their data in-house, moving away from cloud providers like AWS and Azure. This trend is driven by a combination of security concerns, regulatory compliance, and cost savings.

One notable example is 37Signals, which implemented a cloud repatriation plan that saved them $1 million. Their cloud spending decreased by 60%, going from around $180,000 to less than $80,000 per month. Despite managing their hardware, the operations team size remained the same.

However, the decision to repatriate is not always straightforward. While it may lead to cost savings, it’s important to consider the value that cloud computing provides in terms of agility and speed to innovation. Enterprises that rush to on-premises systems to save money might overlook these benefits.

Looking ahead, 2024 could be the year of public cloud repatriation. However, it’s crucial for companies to make informed decisions based on their specific needs and circumstances. For some businesses, cost savings can be turned into value if they are in an industry that does not value innovation and speed.

While cloud repatriation may offer a silver lining for some companies, it’s essential to weigh the potential storm clouds. The decision should be based on a balanced view of technology that considers both cost-efficiency and the unique advantages of cloud computing.

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