In the past ten years, public cloud computing has dramatically changed the IT industry, promising businesses limitless scalability and flexibility. By reducing the need for internal infrastructure and specialised personnel, many companies have eagerly embraced public cloud services. However, as their cloud strategies evolve, some organisations are finding that the expected financial benefits and operational flexibility are not always achieved. This has led to a new trend: cloud repatriation, where businesses move some of their workloads back from public cloud services to private cloud environments.
Choosing to repatriate workloads requires careful consideration and strategic thinking. Organisations must thoroughly understand their specific needs and the nature of their workloads. Key factors include how data is accessed, what needs to be protected, and cost implications. A successful repatriation strategy is nuanced, ensuring that critical workloads are placed in the most suitable environments.
One major factor driving cloud repatriation is the rise of edge computing. Research from Virtana indicates that most organisations now use hybrid cloud strategies, with over 80% operating in multiple clouds and around 75% utilising private clouds. This trend is especially noticeable in industries like retail, industrial sectors, transit, and healthcare, where control over computing resources is crucial. The growth of Internet of Things (IoT) devices has played a defining role, as these devices collect vast amounts of data at the network edge.
Initially, sending IoT data to the public cloud for processing made sense. But as the number of connected devices has grown, the benefits of analysing data at the edge have become clear. Edge computing offers near real-time responses, improved reliability for critical systems, and reduced downtime—essential for maintaining competitiveness and profitability. Consequently, many organisations are moving workloads back from the public cloud to take advantage of localised edge computing.
Concerns over data sovereignty and privacy are also driving cloud repatriation. In sectors like healthcare and financial services, businesses handle large amounts of sensitive data. Maintaining control over this information is vital to protect assets and prevent unauthorised access or breaches. Increased scrutiny from CIOs, CTOs, and boards has heightened the focus on data sovereignty and privacy, leading to more careful evaluations of third-party cloud solutions.
Public clouds may be suitable for workloads not bound by strict data sovereignty laws. However, many organisations find that private cloud solutions are necessary to meet compliance requirements. Factors to consider include the level of control, oversight, portability, and customization needed for specific workloads. Keeping data within trusted environments offers operational and strategic benefits, such as greater control over data access, usage, and sharing.
The trend towards cloud repatriation shows a growing realisation that the public cloud is only sometimes the best choice for every workload. Organisations are increasingly making strategic decisions to align their IT infrastructure with their specific needs and priorities.
