Why are companies migrating from the public cloud back to on-premise infrastructure?

In recent years, the adoption of the public cloud has grown exponentially, with many organizations seeking to take advantage of its benefits of scalability, flexibility, and seemingly lower costs. However, this transition has not proven to be ideal for all companies, and many have returned to on-premise infrastructure. This movement, known as data repatriation, reveals complexities and challenges that were not fully anticipated by companies when they migrated to the cloud.

Below, find out how this reality has impacted organizations and how your organization can choose the best option according to its needs.

Why Are Some Companies Repatriating Their Data?

Although the public cloud offers undisputed advantages, some companies have realized that single-cloud models do not perfectly adapt to all business scenarios. Here are the main problems encountered:

Unexpected Costs 

The dependence on external services can often lead to more spending than planned. Whether through data transfers between different regions or outside the cloud network or automatic resource scaling settings to meet demand peaks, this can result in unexpected operating costs, especially if capacity planning and spending limits are not carefully managed.

Security and Compliance Issues 

In the public cloud, the perception of vulnerability increases, mainly due to resource sharing. In addition, compliance with local and international regulations can be more difficult to guarantee in a cloud environment.

Performance and Configuration Challenges

Public cloud performance can face challenges, despite improvements in latency. This includes inadequate configurations that do not meet the specific needs of applications and the possible overload due to sharing resources with other users. These factors can occasionally affect the efficiency and responsiveness of applications in the cloud.

Lack of Cost Governance (FinOps)

FinOps is a financial management practice that aims to maximize the value of cloud investment, helping organizations monitor, analyze, and optimize spending, and allowing for more informed decision-making about resource usage, budget allocations, and capacity planning.

The lack of this practice can result in wasted resources and unwanted financial surprises, leading some companies to repatriate their operations to on-premise infrastructures where costs can be more predictable and controllable.

Differences Between Public Cloud and On-Premise Infrastructure

Each organization has its own needs based on the nature of its operations, regulatory requirements, and security concerns. While some may benefit from the economy and agility of the public cloud, others may find that on-premise infrastructure is a solution more aligned with their needs for control and security. See some of their differences:

The Public Cloud

The public cloud offers unprecedented scalability and flexibility, allowing companies to quickly adjust their IT resources to fluctuating demands.

This is ideal for applications with variable demand or for companies that prefer to minimize initial investments in hardware.

On-Premise Infrastructure

On-premise infrastructure provides total control over the IT environment, offering enhanced security and consistent performance, especially for applications that require immediate response or handle sensitive data.

This control also facilitates compliance with specific regulations, a vital aspect for many organizations in regulated sectors.

Hybrid Model 

For some companies, the choice between the public cloud and on-premise infrastructure is not binary. A hybrid solution, which combines elements of the public cloud with the control of an on-premise infrastructure, allows companies to maximize operational efficiency by using the cloud for scalable and dynamic workloads, while keeping critical operations and sensitive data in a secure on-premise environment.

Choosing the Right Infrastructure with Altasnet

At Altasnet, we help you navigate these choices so that the chosen IT infrastructure not only supports your current operations but also adapts to future needs.

Our specialists are available to evaluate your specific needs and recommend the best approach, whether in the cloud, on-premise, or a combination of both.

Contact us and discover how we can help strengthen and adapt your IT infrastructure for the sustained success of your business.