The Trend of Cloud Repatriation: Moving Back to On-Premises Infrastructure

In recent years, a shift in IT infrastructure strategies has seen many companies moving workloads away from public cloud services and back to on-premises setups or private cloud environments. This movement, known as “cloud repatriation,” is driven by various factors that range from cost management to performance, security, and compliance concerns. While public cloud adoption surged over the past decade, the limitations of this model have led organizations to reconsider their approach, resulting in a hybrid IT strategy combining both on-premises and cloud resources.

Why Companies Are Moving Back to On-Premises

1. Cost Considerations

One of the most prominent factors driving cloud repatriation is the realization of the high costs associated with public cloud services. While the cloud offers scalability and flexibility, many companies face “bill shock” due to unpredictable costs and frequent price changes. For instance, egress charges for data transfer, unpredictable scaling costs, and the expense of managing complex cloud environments can add up quickly, leading some organizations to question the cost-efficiency of remaining in the cloud.