May 18, 2024

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Why are companies taking back ownership of their infrastructure?

Why are companies taking back ownership of their infrastructure?

  • “Back to the cloud” has become a trend for many companies that jumped into the cloud years ago

  • The reasons are varied, but one reason stands out above all of them: the cloud is expensive

The emergence of Amazon Web Services and soon after that alternatives such as Azure or Google Cloud seemed to be a boon for businesses: thanks to Infrastructure as a Service (IaaS) platforms, any company can save the hassle of maintaining its own servers and have access to dynamically scalable platforms that adapt to the modern era. What happens is that companies realized it wasn't worth it.

Back to the cloud. This is the name of this phenomenon that has been going on for a few years and consists of something simple: leaving the cloud and going back to having all services and data in the on-premises infrastructure. In the world of information They counted how 25% of companies surveyed in the UK have already taken a partial or complete step in this regard.

Various reasons. Among the reasons given by the companies that participated in the survey that brought their infrastructure back home were the security issues and the high expectations they had with this change. 33% pointed to this issue, while 24% explained that their goals and expectations were not met. because?

Going to the cloud wasn't just going to the cloud. The truth is, moving to a cloud platform is meaningless if you don't optimize your needs and workload for the cloud. Doing this with legacy applications and not adapting them to the new era or taking advantage of the advantages of containers or clustering may be counterproductive, and above all…

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The cloud is more expensive. The main reason for moving back to the cloud was specifically cost: 43% of companies surveyed explained that the original migration process ended up being more expensive than expected. It is true that the cost-benefit analysis when choosing between cloud and on-premises infrastructure varies greatly from one company to another, but many companies choose the cloud believing that doing so will save them money. In many cases this appears not to be the case.

But there are challenges. Companies that are “going back in the day” and running their own clouds Need Closely monitoring the local infrastructure to avoid security failures, experts to manage services and data and also carefully analyze the hardware resources they need. All of this imposes an economic and resource cost, which must be taken into account in the long term.

Known case. David Heinemeyer Hansson, the creator of Hey and Bascamp who has seen his ups and downs with Apple, told in October 2022 how accurate They made this decision Upon discovering that costs were rising dramatically. Months later he had How did it happen? process, and is back Somewhat later are the advantages they gain by returning to the cloud. The return movement, at least in his case, was successful.

The AWS and Azure of the world won't be affected (much). It may seem that this decision by many companies to leave these services would be a serious problem for companies like Amazon or Microsoft, but the truth is that they have a bigger horizon on the horizon: artificial intelligence, which is causing the emergence of countless new technologies. Web services that are hosted strictly in the cloud. And more to come.

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Image | Ismail Anis Ayhan

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