UII UPDATE 179 | Q1 2023
Intelligence Update

High costs drive cloud repatriation, but impact is overstated

18 Jan 2023
4 min read

Unexpected costs are driving some data-heavy and legacy applications back from public-cloud to on-premises locations. However, very few organizations are moving away from the public cloud strategically — let alone altogether.

The past decade has seen numerous reports of so-called cloud “repatriations” — the migration of applications back to on-premises venues following negative experiences with, or unsuccessful migrations to, the public cloud. These reports have been cited by some colocation providers and private-cloud vendors as evidence of the public cloud's failures, particularly concerning cost and performance.

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