Many business leaders are taking a clear-eyed view of the cloud’s benefits and drawbacks. Technical debt may be at the root of many repatriation decisions.
The cloud has dominated enterprise technology provision for a decade or more. Public cloud services, with huge capacity, commitments to security, and assurances that the latest and greatest technologies are running underneath, offer a compelling value proposition. In the age of artificial intelligence (AI), capacity is critical. However, a new survey suggests evidence of a movement away from public provision.
Close to seven in 10 companies (69%) have moved at least some apps off the cloud and back to on-premise systems or private clouds, the survey of 1,420 IT executives from Rackspace finds. Reasons given for this retrenchment back to on-premise environments include data security and compliance concerns, cited by 50%, better integration with existing on-premise systems, mentioned by 48%, and cost savings and budget constraints, cited by 44%.
Industry experts and business leaders also recognized a reconsideration of the value of public clouds. For one, the rising costs of cloud subscriptions — with accompanying sticker shock — means many finance chiefs have paused for thought. “Enterprises are just spending too much on public cloud services, given applications they may have migrated to the cloud years ago,” said David Linthicum, a leading consultant, author, and former CTO with Deloitte.
Reference: ZDNet