Cloud Repatriation and Rationalization – Cloud Field Day 21 Delegate Roundtable Discussion

The roundtable discussion at Cloud Field Day 21 centered around the growing trend of cloud repatriation, where companies are considering moving workloads from the cloud back to on-premises environments. The delegates discussed the reasons behind this shift, with cost being a primary driver. Many organizations initially moved to the cloud during the COVID-19 pandemic due to the need for remote access and scalability. However, as businesses return to more traditional operations, they are reassessing the financial implications of cloud services, especially when unexpected operational expenses arise. The unpredictability of cloud costs, particularly in OPEX models, has led some companies to reconsider whether certain workloads are better suited for on-premises infrastructure, where they feel they have more control over expenses.

Another key point raised was the evolution of technology and operational models. While many applications were initially lifted and shifted to the cloud, not all of them are optimized for cloud environments, leading to inefficiencies and higher costs. The delegates noted that newer applications, especially those designed to be cloud-native, are likely to remain in the cloud, but legacy applications may be better suited for on-premises environments. Additionally, the conversation highlighted how cloud operational models, such as automation and elasticity, have been adopted in on-premises environments, blurring the lines between cloud and traditional data centers. This shift in operational models has made it easier for companies to repatriate workloads without losing the benefits of cloud-like flexibility.

The discussion also touched on the broader implications of repatriation, including the role of financial models and the importance of aligning technology decisions with business needs. The delegates emphasized that repatriation is not just a technical decision but also a financial one, driven by the need to balance CAPEX and OPEX. They also pointed out that the decision to repatriate should be based on the specific workload and its requirements, rather than a blanket move away from the cloud. Ultimately, the conversation suggested that cloud repatriation is a nuanced topic, with companies needing to carefully evaluate their workloads, costs, and operational models to determine the best approach for their infrastructure.