As businesses refine their IT strategies, many are exploring the potential benefits of cloud repatriation. CIOs are rethinking their infrastructure plans. They are choosing to move some workloads from public cloud platforms back to private or on-premises environments.
This strategic move, called “reverse migration,” is not a setback. It is a way to find a balanced and efficient approach to IT infrastructure.
What Is cloud repatriation?
Cloud repatriation is the process of moving data, applications, or workloads from public cloud services. These services include AWS, Microsoft Azure, and Google Cloud. The goal is to return them to private or on-premises solutions.
Organizations often pursue cost savings, optimize performance, and seek greater control over infrastructure with this move. By transitioning away from fully public setups, organizations can enhance their operational efficiency and infrastructure management.
The case for cloud repatriation – Key drivers:
When companies first adopt public cloud platforms, they’re often drawn by the promise of scalability and simplicity. However, as they mature in their cloud journey, some discover limitations and hidden costs. Major companies like Dropbox, Adobe, and 37signals (the parent of Basecamp and HEY) have taken this route. They realized that on-premises or hybrid models can offer significant benefits.
Rising costs
While public clouds initially appear cost-effective, their financial allure can diminish over time. Non-optimized applications can drive up expenses, and price fluctuations add to the unpredictability. Dropbox’s shift to a hybrid model, for instance, resulted in $75 million in savings over two years. This highlights the tangible financial benefits of repatriation.
Better control and oversight
Public cloud platforms offer unparalleled flexibility, but they can also introduce governance challenges. Without stringent oversight, costs can spiral and compliance can become complex. Repatriating workloads allows organizations to regain control over their infrastructure, especially when dealing with sensitive data or regulatory mandates.
Improved performance
While public cloud services provide broad global reach, specific applications might not perform as needed. Repatriating to a private or on-premises setup can improve latency and performance by allowing customization according to the organization’s unique requirements.
Avoiding vendor lock-in
Exclusively relying on a single cloud provider can restrict a company’s flexibility. To avoid vendor lock-in and maintain adaptability, many businesses opt for hybrid or multi-cloud approaches.
Storage costs and egress fees
While data storage in the cloud might be manageable, moving data out—through egress fees—can create unanticipated expenses. For many businesses, these hidden costs make repatriation an appealing option.
Real-world proof of savings
The financial case for cloud repatriation is compelling. Companies like Dropbox and 37signals have seen notable savings by transitioning from fully public cloud setups to hybrid models. Dropbox reduced their cloud costs by $75 million, while 37signals recouped nearly $2 million within a year. These examples illustrate that the right strategy can deliver substantial cost reductions and improved control.
Case Study: Overcoming cloud cost challenges in DevOps field
A company in the DevOps and CI/CD field faced a common problem. Their cloud costs had risen to an unsustainable $100,000 each month. This organization, which relies on Bazel for building iPhone applications, realized that continuing with their major cloud provider was financially untenable.
Seeking to regain control, they drew inspiration from businesses that had successfully repatriated their infrastructure. Their solution was to purchase their own hardware and co-locate it, shifting from cloud rentals to direct ownership.
They partnered with NetActuate to set up in a San Jose facility. This facility has many 100G ports. This setup helps them meet the performance standards their customers expect.
While this transition effectively supported their West Coast clients, latency for East Coast users presented a new challenge. The company recognizes that expanding their infrastructure to the East Coast and leveraging Anycast would be essential to address these performance issues.
This case shows how owning infrastructure and strategic colocation can help businesses manage cloud costs. Solutions from NetActuate support this by improving performance and scalability.
Approaches to cloud repatriation
The path to repatriation varies based on an organization’s goals, current setup, and budget. Common approaches include:
- Repatriating to an in-house datacenter
- Pros: Lower long-term costs, complete infrastructure control, access to on-prem resources.
- Cons: High initial CAPEX, ongoing maintenance, potential power/networking challenges.
- NetActuate’s Role: For those with existing data centers, NetActuate offers edge and hybrid solutions to enhance reliability and extend services.
- Repatriating to managed hardware
- What it means: Shifting to managed hardware hosted by a provider provides a cloud-like experience without the burden of hardware ownership.
- Pros: Lower initial costs, vendor-managed maintenance, customizable solutions.
- Cons: Higher operational expenses.
- NetActuate’s Role: NetActuate offers custom OpenStack or VMware deployments to help businesses tailor their infrastructure while incorporating edge computing for performance optimization.
- Repatriating to colocated hardware
- What it means:: Companies own the hardware but lease space in third-party facilities.
- Pros: Cost savings over time, hardware control, flexibility.
- Cons: Higher upfront costs, technical expertise needed.
- NetActuate’s Role: NetActuate provides fully redundant environments, complete with power, networking, and optional managed services.
Lower costs and better control with NetActuate
From startups to enterprises, evaluating cloud strategies can uncover significant cost-saving opportunities. By managing workloads strategically between public clouds and private infrastructure, organizations can enjoy both flexibility and cost predictability. NetActuate offers consulting and infrastructure solutions to guide businesses through repatriation, ensuring seamless transitions that align with their unique needs.
Conclusion
Cloud repatriation is not just a trend; it’s a strategic decision for sustainable, cost-effective infrastructure. With NetActuate’s guidance, companies can confidently navigate repatriation, leveraging customized solutions to optimize performance, security, and costs.
Get in touch with an engineer now to learn more.
Read this Forbes article by Mark Mahle, CEO & Cofounder, NetActuate to learn more about how you can take control of your coud costs today:- How To Get The Most Out Of Cloud Repatriation To Control Soaring Costs