How To Get The Most Out Of Cloud Repatriation To Control Soaring Costs

Article originally published on Forbes.com. Image courtesy of Getty.

As IT landscapes continue to evolve, many businesses are compelled to reassess their cloud strategies. While public cloud platforms like AWS, Microsoft Azure and Google Cloud once promised unmatched flexibility and scalability, a growing number of organizations are opting for cloud repatriation. This strategy involves moving data, applications and workloads back to private or on-premises environments. However, it is crucial to note that this shift isn’t about rejecting the cloud; rather, it’s about finding a smarter, more balanced approach that aligns better with the business’s infrastructure, costs and control.

What Is Cloud Repatriation?

Cloud repatriation involves moving workloads from public cloud platforms to private data centers or on-premises infrastructure. You may pursue this strategy for various reasons—including cost savings, enhanced performance and increased security.

For many, it’s about striking the right balance between leveraging cloud capabilities and maintaining control over critical resources.

Why Are Companies Repatriating?

Well, just like technology, businesses also evolve. And while cloud platforms offer convenience and scalability, they also bring new challenges that can impact your bottom line and operational control.

Here’s why companies are choosing repatriation:

Rising Costs

Public clouds are initially attractive for their scalability and pay-as-you-go pricing. However, as your business expands, costs can spiral out of control. Unoptimized applications often contribute to budget overruns, requiring constant management to avoid unforeseen expenses. Dropbox, for example, saved $75 million over two years by adopting a hybrid cloud model that balanced on-premises and cloud usage.

Control And Oversight

While the ease of deploying cloud resources can spark innovation for your team, it can also lead to governance issues. Without clear controls in place, it’s very common for organizations to face unexpected spending and compliance challenges. In fact, some companies, especially those with regulatory requirements, may find it necessary to move to private or sovereign cloud solutions to regain oversight of their data and infrastructure.

Storage Costs And Egress Fees

While data storage is a known cost in the public cloud, many businesses are surprised by the egress fees—the charges that come with transferring data out of the cloud. These often-overlooked expenses can quickly add up, making repatriation an attractive option if you’re looking to reduce your financial burden.

Misconfiguration And Security Risks

The shared responsibility model of public cloud providers means you are responsible for securing your own data. Misconfigurations are a leading cause of data leaks, and many companies are realizing the value of moving workloads back in-house, where they can directly manage and secure their infrastructure.

Performance Optimization

While global cloud platforms are vast and far-reaching, they aren’t always optimized for every use case. If your business applications require low latency or highly tailored configurations, you may benefit from a private infrastructure. Here, you will have full control over performance and can avoid the limitations of a one-size-fits-all solution.

Avoiding Vendor Lock-In

Relying solely on one cloud provider can limit your flexibility and tie your business to long-term dependencies. By adopting hybrid or multi-cloud strategies, you can avoid vendor lock-in and have more freedom to pivot and adapt as needed.

But how does cloud repatriation work in action? Let’s look at a real-world example.

Real-world Case Study: Navigating Cloud Costs In The DevOps Sector

A DevOps and CI/CD (Continuous Integration and Continuous Delivery) company focused on building developer tools with Bazel for iPhone apps found their cloud costs skyrocketing to an unsustainable $100,000 per month. Recognizing the strain, the leadership team looked to examples of cloud repatriation for inspiration.

Their solution? They bought their own hardware and moved to a colocation facility—a shift that promised better cost control, more predictable expenses and greater operational independence.

Their new setup at a West Coast colocation facility worked well, delivering the service quality they needed. However, latency issues soon began affecting their East Coast clients.

Although they knew they needed more infrastructure and advanced networking to fix this, other projects kept pushing those upgrades down the priority list. Meanwhile, cloud expenses continued to weigh heavily on their budget, highlighting the importance of thorough planning and timely action in repatriation efforts.

This example shows how essential it is for organizations to balance cost-saving goals with strategic infrastructure investments like Anycast to keep performance high and service steady.

The Path Forward: Balancing Public And Private Infrastructure

When considering cloud repatriation, there’s no one-size-fits-all solution. Depending on your company’s goals, infrastructure and financial situation, there are several ways to go, including in-house data centers, managed hardware solutions or colocated facilities.

The key is to find the right combination that helps you balance cost, control and scalability.

Your options include:

Repatriating To An In-House Datacenter

If you are willing to invest in long-term infrastructure, in-house data centers provide maximum control. However, it is important to note that this option often comes with higher upfront costs and ongoing maintenance responsibilities.

Utilizing Managed Hardware

You could also opt for managed hardware solutions, which offer the benefits of a private environment without the hassle of hardware management. This option provides you with flexibility while avoiding the complexities of ownership.

Opting For Colocation

Purchasing hardware and housing it in third-party data centers is another viable option. This allows you to maintain control over the hardware while benefiting from the expertise and facilities of the hosting provider. While an initial investment is required, colocation can lead to significant long-term cost savings.

Conclusion

Cloud repatriation is more than just a cost-saving measure—it’s a strategic decision that can help you align your business’s IT infrastructure with its long-term goals. By carefully weighing your options, you can achieve better cost control, enhanced security and optimized performance.

As for the future of cloud strategy, it certainly seems to lean towards hybrid. Businesses are likely to selectively use public cloud resources while repatriating key workloads to private environments. This will help them combine the best of both worlds for maximum flexibility and adaptability in a fast-changing digital landscape.