The Cloud’s Changing Landscape

By Kieran Chakravorty

The cloud revolution has transformed the way businesses operate, this is indisputable. However, recent trends indicate a shift in the cloud landscape, with some companies opting to repatriate their servers back to on-premises environments.

The primary driver behind this trend is the increasing costs associated with cloud subscriptions. Cloud providers have had to adjust their pricing models to continue making a profit as costs spiral out of control. This leads to higher subscription fees for businesses.

For the moment the cloud remains cheap, but the recent changes are starting to make costs deeply unpredictable. Plus, there are concerns about the growing demand for cloud resources from other sectors - it is a sellers’ market. AI companies, for instance, are looking to buy up any cloud computing they can at any cost, driving up prices further.

Beyond cost concerns, while cloud environments offer flexibility and scalability, they also introduce complexities in data management, security, and compliance. The onus is on a company to look after their own data, and make sure it’s backed up. Data in the cloud is not, by default, backed up.

The repatriation of servers doesn’t mean a complete abandonment of cloud services.

Most businesses are adopting hybrid or private cloud strategies, combining on-premises infrastructure with cloud-based services. This approach allows businesses to leverage the benefits of both worlds, reaping the cost savings of on-premises hosting while maintaining access to cloud-specific features and capabilities. This is almost certainly the future of IT.

One popular in-house solution is running Private Cloud on Linux servers, which provides improved performance, reduced latency, and predictable costs through edge computing. Edge computing, simply put, brings data storage and processing closer to the data source, offering faster and more efficient operations.

Before making the decision to repatriate servers, businesses should carefully evaluate their specific needs and requirements. Considerations include:

• Data security and compliance: On-premises hosting offers greater control over data security and compliance, which may be crucial for businesses handling sensitive information or operating in regulated industries.

• Cost-effectiveness: Businesses should compare the total cost of ownership (TCO) for on-premises hosting to their current cloud costs. Factors like hardware, software, maintenance, and IT expertise should be factored in.

• IT expertise: On-premises hosting requires a dedicated IT team with expertise in managing and maintaining physical infrastructure and network security. Repatriating often involves finding trusted professionals who can assist you in looking after your IT, or solutions like our Contract Hire which take the pain away completely. Predictable costs are enormously helpful to businesses.

Ultimately, the decision of whether to bring servers in-house depends on the specific needs and requirements of each organisation. This is where a trusted, neutral IT team will prove invaluable.