Cloud Repatriation: why it’s on the rise and how to approach it

What is Cloud Repatriation?

Cloud repatriation is not about abandoning the cloud entirely. Instead, it’s part of a multicloud or hybrid strategy, where businesses move certain workloads back from the public cloud to their own data centers or private clouds. This movement is another demonstration that the cloud is not an end goal. Rather, you should treat it as one tool in your toolbelt that solves some specific problems.

Why are organisations considering Cloud Repatriation?

Several factors are prompting companies to reconsider their cloud-first strategies and explore repatriation.

1. Cost management:

One of the primary reasons companies move workloads back on-premises is escalating and unpredictable costs associated with cloud environments. Public clouds operate on a pay-per-use model, which can be cost-effective for elastic workloads (you don’t need to permanently overprovision for peak traffic needs and you can actually scale down if there is less traffic), but as operations scale, companies may face hidden costs for data transfer, storage, and egress. A CIO report found that many companies experience bill shock as cloud usage scales unexpectedly. For companies with stable, predictable workloads, running infrastructure on-premises can provide more consistent and lower operational costs.

2. Data sovereignty and compliance:

With stricter regulations like GDPR and DORA in Europe or BSI Grundschutz in Germany, organisations must ensure that certain types of data stay within specific geographical boundaries. This becomes challenging when data is stored in the public cloud, where jurisdiction over data can become murky. Repatriating sensitive data to on-prem infrastructure helps companies comply with stringent regulatory requirements while maintaining greater control over data security.

3. Performance and latency:

Some workloads, especially those requiring low-latency performance or real-time processing, may perform better in an on-prem environment. This is particularly relevant in industries such as financial services and manufacturing, where milliseconds matter. Cloud environments, while flexible, may not always offer the performance guarantees that certain applications require.

4. Private cloud solutions are better than ever

The rise of advanced private cloud solutions is another key factor driving organisations to consider repatriation. Technologies like Kubernetes have become the de facto standard for managing containerised applications, making it easier to migrate workloads between cloud environments and on-premises data centers. This flexibility allows organisations to move applications back on-premises while maintaining the agility of cloud-like operations.

Moreover, open-source solutions such as Harvester or Apache CloudStack are gaining traction. They offer the benefits of cloud-like APIs and self-service infrastructure, similar to public cloud environments, but at a lower cost than legacy systems like VMware. These solutions provide enterprises with a way to run cloud-native workloads on-premises, delivering the best of both worlds—scalability and flexibility without the high costs of traditional cloud vendors.

Bad reasons for Cloud Repatriation

While there are valid reasons to move workloads out of the public cloud, there are also scenarios where cloud repatriation may not be the right choice:

1. Reacting to short-term costs:

Cloud repatriation involves significant costs in terms of infrastructure setup, application refactoring, and operational changes. If your decision is based solely on short-term cloud billing issues, optimising your cloud usage through better cost management tools, like Cloudability or Opencost, might be a more effective solution.

2. Fear of the Cloud:

Some organisations repatriate workloads due to concerns about security or complexity without fully understanding modern cloud capabilities. Today’s public clouds offer robust security features, and there are tools available to help manage multicloud environments. Fear alone should not drive cloud repatriation.

3. Over-optimising for performance:

Not all applications require ultra-low latency or dedicated infrastructure. Moving non-critical workloads back to on-premises just for marginal performance gains might not be worth the cost or effort.

4. Hype:

Some companies, like 37Signals (Basecamp), have been vocal about their successes in fully moving back to on-premises infrastructure. Their results, which include significant cost savings, are often highlighted in cloud repatriation discussions. However, it’s important to remember that these outcomes are specific to their circumstances. Decisions should always be made on a case-by-case basis, taking into account factors like workload, scalability needs, and financial considerations. Following the hype without proper evaluation can lead to suboptimal results for your specific context.

Steps for Cloud Repatriation

Moving workloads from the cloud back to on-prem infrastructure is a complex process that requires careful planning.

1. Tech estate assessment:

Start by evaluating your current cloud infrastructure to identify which workloads would benefit from repatriation. Assess the cost-effectiveness, performance needs, and compliance requirements of each workload. This audit helps uncover which applications are better suited for on-premises. Keep the 7 Rs of migration strategies in mind (Retire, Retain, Rehost, Relocate, Repurchase, Replatform, Refactor). Make sure you identify patterns in your workloads, like common technologies, criticality of data, performance requirements, and so on. Based on these patterns you might need different target environments.

2. Prioritise workloads:

Identify high-priority workloads based on their business importance, compliance demands, and data intensity. These workloads, especially those with strict compliance requirements, should be repatriated first to limit disruptions. Don’t forget: The biggest business values are either risk reduction or cost reduction. Does the potential value justify the effort?

3. Prepare your environments:

Before moving any workloads, ensure that your on-premises environment is ready to handle the workloads. Start by assessing your existing capacity and infrastructure. Determine whether your current setup can accommodate the workloads identified in your assessment. This involves checking storage, compute, and networking resources, as well as evaluating cooling and power requirements. If a new platform is necessary, begin by building just enough to support the target environments identified in Step 1. Start small and scale only as needed to avoid unnecessary upfront costs.

4. Prepare for the migration:

Repatriation can involve challenges like data migration, downtime, and application refactoring. Prepare for these obstacles by creating a detailed migration plan. Automate the migration process as much as possible. Ensure your staff tries out this plan on a small scale initially. And remember: hope is not a strategy!

5. Scale your migration:

Once you’ve successfully migrated workloads on a small scale and tested them thoroughly, it’s time to scale out. Begin by migrating all applications that share the same target platform as initial workloads you’ve already migrated. This staged, platform-focused approach ensures consistency and minimises surprises during larger migrations. Again, automation is crucial. Automate as much of the process as possible — whether it’s provisioning infrastructure, configuring environments, or transferring data.

As you scale, focus on iterative improvements. Each migration phase offers insights that can refine the process for the next wave of applications. Continue to enhance automation scripts, identify bottlenecks, and resolve any issues that arise. By iterating, you’ll make each successive migration smoother and more efficient, reducing both manual effort and downtime. This approach not only ensures that the process is repeatable, but it also allows you to adapt quickly to any unforeseen challenges as your migration expands.

Conclusion

Cloud repatriation is a strategic decision that can allow companies to optimise costs, enhance performance, and ensure regulatory compliance. It’s not a rejection of the cloud, but rather a refined approach to workload management. For organisations considering repatriation, a hybrid strategy often provides the flexibility needed to maximise the benefits of both on-premises and cloud infrastructure. With careful planning, cloud repatriation can be a powerful tool for businesses to achieve their IT and business goals.

Ready to optimise your IT strategy?

At Think Ahead, we specialise in helping organisations find the perfect balance between cloud, on-premises, and hybrid solutions. Whether you’re exploring cloud repatriation, optimising your cloud usage, or designing a hybrid infrastructure, our experts are here to guide you through every step. Let us help you reduce costs, improve performance, and stay compliant with a strategy tailored to your business needs.

Schedule a free meeting now to discover how we can transform your IT infrastructure and unlock the full potential of your workloads—whether in the cloud, on-prem, or somewhere in between!