The Rise of Cloud Repatriation
What is Cloud Repatriation?
Cloud repatriation is a process where companies move their data, applications, services, or certain workloads from public cloud platforms like AWS, Azure, or GCP back to on-premises data centers, private clouds, or hybrid deployment models.
This shift typically occurs after businesses have initially adopted cloud services for their flexibility, scalability, and ease of access. As organizations grow and evolve, they may opt for cloud repatriation due to various factors such as rising costs of managing large amounts of data in the cloud, specific security or privacy concerns, performance optimization needs, regulatory compliance requirements, or a desire for greater control over their IT environment.
Companies may choose cloud repatriation due to changing business needs and the benefits of a tailored IT strategy. This approach can reduce costs, improve performance, and increase control over data and infrastructure. Rather than completely abandoning cloud services, cloud repatriation often creates a balanced approach combining on-premises, private cloud, or hybrid models. This shift allows companies to customize their IT infrastructure to their specific needs, moving away from a one-size-fits-all cloud solution.
Why are Companies Now Looking to Reverse Cloud Migration?
Cloud technology has matured from a young and innovative disruptor of traditional storage methods into an institutional standard, broadly adopted by companies across every industry, large and small.
From its conception over thirty years ago, the cloud promised to revolutionize the way we approach our data, services, and online applications. Public cloud storage solutions like AWS, Azure, and GCP, reached product maturity during a time when data growth was exponential and the promise to drive business intelligence and analytics was being fully realized.
An innovative data storage solution promising infinite scalability, unprecedented accessibility, and state-of-the-art data security was exactly what was needed and by 2023, approximately 60% of all corporate data was stored in the cloud.
So, with all that was promised for those who adopted a cloud-based strategy, why did a recent survey from Barclays find that 83% of surveyed chief information officers (CIOs) are reversing course and now intend to implement public cloud repatriation to some degree or another?
“The myth of cloud first is toast… When the meter never stops spinning, rational thinking eventually emerges.”
Steve Canepa, IBM’s global managing director for signature accounts
Utilizing a hybrid approach that combines both cloud and on-premises solutions can increase flexibility and control. While the public cloud delivers scalability, accessibility, and cutting-edge features, on-prem provides more predictable and lower costs, enhanced security for sensitive data, and better control over critical applications. By leveraging the strengths of both environments, organizations can optimize their data strategies, balancing performance, cost-efficiency, and security.
5 Key Drivers of Cloud Repatriation
The percentage of corporate data stored on the cloud doubled between 2015 and 2022. However, recent cloud repatriation trends suggest that we are unlikely to see a similarly sizeable increase over the next decade.
Public cloud storage is far from a perfect solution, with some of the most significant challenges including:
1. Cost shock and unexpected expenses
While many public cloud services operate on a pay-as-you-go model that can lower initial expenditure when compared to on-premises data centers, variable pricing can make month-to-month costs unpredictable and lead to sudden unexpected cost shocks. This is a problem now more than ever as more companies begin training their own Large Language Models (LLMs) and AI models, significantly increasing their computing requirements and costs.
2. Performance issues with high constant load data sets
Peak usage periods, intermittent latency issues, and physical distance from data centers are all challenges commonly faced while using a public cloud, any one of which can have a significant impact on efficiency and productivity. These issues can become particularly exasperating for high constant load data sets.
3. Data privacy and compliance challenges
Companies relinquish control over much of their data privacy and compliance control when using a cloud-based storage solution. While commonly used public clouds such as Azure or AWS promise comprehensive data integrity standards, many companies are now looking at repatriation from the cloud to implement the highest standards, tailored in accordance with their specific industry requirements.
4. Security concerns
High-profile data leaks and security breaches continue to make headlines regularly, with detrimental results for the companies involved and their customers, not to mention the irreversible damage caused to a company’s reputation. Cloud repatriation is just one way to ensure a business has the final say on security and data access.
5. Desire for greater control over infrastructure
The era of artificial intelligence is upon us and the race to develop more sophisticated LLM, ML, and AI-based models capable of outpacing the competition is in full swing. As such, companies are looking to regain greater control over how their data is stored and accessed. Bringing part or all your data storage in-house is the best way to exert maximum control and customizability.
Whether the share of cloud-based data will continue to grow at a slower pace or whether cloud repatriation is only a trend is still unclear.
What is apparent is that more than ever before CIOs and stakeholders are now seriously weighing up whether the benefits of cloud storage outweigh the drawbacks. Companies are now considering whether a more hybrid approach, with at least some form of repatriation from the cloud to on-prem, can offer the best of both worlds.
4 Challenges of Cloud Repatriation
Cloud repatriation is an enticing proposition for CIOs and companies looking to increase control over their data landscape, implement fully tailored solutions, and use their data in new and innovative ways. However, it is a process that is not without its challenges. Common challenges include:
- Technical complexities of moving workloads
Repatriation from the cloud to on-premises offers several advantages, though it is a significant undertaking. Cloud repatriation requires the company to deliver its own solution, meaning new infrastructure, cabling, staffing, and a potential shift in work practices all need to be considered. - Skill gaps and resource allocation
Bringing data back in-house also requires trained staff to both implement and maintain the storage infrastructure. Training and reallocating existing employees or hiring new staff with the correct expertise can be time and cost-prohibitive. - Ensuring data integrity and security during migration
Transferring data from one location to another can feel like a daunting task, particularly when it comes to data integrity and security during the migration process. Depending on the amount of data moved, this could be a prolonged process in which safety, backup, and failsafe protocols must be maintained. - Potential disruptions to business operations
For some companies, losing access to their data for any significant length of time is simply not an option. Be that for productivity, compliance, or security reasons. That is why partnering with a cloud reverse migration expert such as Exasol can be so important.
To overcome some of the challenges associated with data repatriation, companies may wish to transfer only certain workloads, applications, or datasets and embrace a hybrid approach. This might include those that are high-cost and high-performance or those needing the highest security standards.
3 Best Practices for Successful Cloud Repatriation
Cloud repatriation, as with any significant data migration, is a significant undertaking that requires careful planning and precise execution. This is to ensure data integrity, security, and minimal downtime. Consider the following points while performing a reverse cloud migration:
- Developing a comprehensive migration strategy
It is important to ensure that all the necessary infrastructure is already in place before beginning cloud repatriation. Also, ensure that relevant stakeholders and employees are aware of the expected downtime that can be expected and have prepared contingency plans for that period. - Ensuring proper data management and governance
Just as there are comprehensive laws and regulations governing how data can be stored and used, the same is also true of data migration. Security and failsafe protocols should be in place to ensure that, should something go wrong, all data is protected in accordance with the relevant governing standards. - Leveraging automation and orchestration tools
Manually transferring data at the levels that modern companies store would be nearly impossible to complete at any acceptable pace. It would also mean resources being redirected from other important aspects of your business. Leverage the power of automation and orchestration tools to complete the process in a fraction of the time.
Is Cloud Repatriation Just a Trend?
Despite the initial promises of public cloud services, many organizations are realizing that a one-size-fits-all approach may not be ideal for their specific needs and are undertaking reverse cloud migration. However, while cloud repatriation offers benefits like cost reduction, improved performance, and increased control, it also presents challenges such as technical complexities, skill gaps, and potential business disruptions. Successful cloud repatriation requires careful planning, proper data management, and automation tools to ensure a smooth transition.
We’d like to hear your thoughts on whether you think cloud repatriation is just a fad – take our 3-minute survey and let us know today.
