There is undoubtedly a vigorous hype about how public clouds are leading in IT revolution. However, an impressive number of organizations continue to migrate workloads from the cloud back to on-premises data centers, although it is a lesser percentage than before. Based on a 2021 survey by 451 Research, 48% of participants reinstated some of their workloads from cloud providers. A statistic that mirrors Gartner’s projection that “more than 50% of data migration efforts would overshoot their budget and timeline — and potentially impact the business — because of faulty planning and implementation”.
Before going into the factors, what is cloud computing; it is basically internet-based (the cloud) delivery of computing services such as software, databases, servers, and networking.
This means end consumers can use software and applications from any location. Instead of owning their own computing infrastructure and data centers, businesses can lease access to everything from applications to storage from cloud service providers.
FACTORS BEHIND THE SHIFT TOWARDS ON-PREMISES DEPLOYMENTS
This shift to on-premises infrastructure, which is being driven by an increasing number of businesses returning their data and applications to their own physical servers, is being fueled by a variety of factors.
One of the main advantages that businesses sought when they migrated to the cloud was reduced prices. Hence, they were startled to learn that their costs ended up rising due to additional services, functions, data feeds amongst others. According to Statista, waste accounts for almost 30% of overall cloud spending! Gartner expected overall cloud spending in 2022 to be around $500 billion. If we can trust these numbers, then the annual GDP of over two-thirds of the world’s countries is greater than the amount of cloud waste.
2. Security Concerns
A substantial security breach can crash an enterprise indefinitely. Although public cloud providers offer security options. it is your obligation to ensure the options are configured correctly. This means you need seasoned cybersecurity professionals on staff, and they are extremely hard to find due to a shortage of cyber security professionals in the labor market.
3.Performance
Delays often occur in the cloud. Most businesses utilize cloud-based systems over the open internet, and the multi-tenancy model slows things down by sharing processors and storage systems with many other users at the same time. Depending on what you are doing in the cloud with a particular cloud-based AI/ML system, occasional latency can cost you thousands of dollars in lost revenue annually of dollars.
4.Regulatory Compliance
For companies migrating from physical infrastructure, cloud compliance was a whole different world. They could suddenly fail or risk not meeting various standards and face fines and legal troubles.
These companies do not consider compliance a low priority. The problem is that many believe that it is the cloud provider’s responsibility to adhere to best practices. This has proven to be a fatal mistake for some and a lesson for others: compliance has always been a corporate responsibility.
CHALLENGES FOR BUSINESSES DURING THE TRANSITION
As businesses consider moving from cloud deployment to an on-premises deployment, there are certain challenges and concerns that need to be considered.
One of the biggest issues is the upfront cost associated with on-premises deployment. Organizations need to invest in hardware and infrastructure, which can be a significant capital expenditure.
2. Maintenance and Upkeep
Onsite deployments require regular maintenance and upkeep, which can be time consuming and costly. Organizations must have the resources and expertise to maintain and update their infrastructure.
Overall, Cloud computing will continue to grow. The future of on-premises and cloud deployments in organizations is a topic that continues to evolve as technology advances and businesses adapt to changing market conditions. Both deployment options have their own advantages and disadvantages, and organizations should consider these factors when deciding which method is best for their needs.
MIGRATION AT OURANOS TECHNOLOGIES
We at Ouranos Technologies collaborate with you to identify the most appropriate cloud strategy, operational framework, roadmap, and ecosystem partners. Our comprehensive range of proprietary tools and cloud factories aids in the acceleration of cloud migration and the
realization of business value.
