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Cloud Repatriation: Fact or Fiction? Exploring the Trends
Cloud Repatriation: Fact or Fiction? Exploring the Trends

March 25, 2025

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Yes, cloud repatriation is indeed happening. It involves moving applications, services, and data from public clouds back to on-premises data centers, private clouds, or hybrid environments. This trend is driven by several factors, including rising cloud costs, performance issues, security concerns, and compliance requirements.

Trends in Verticals and Industry Size

  • Verticals: Cloud repatriation is observed across various sectors. Companies in highly regulated industries like BFSI often repatriate sensitive data to ensure compliance and security.
  • Industry Size: Both large and SMEs are involved in cloud repatriation. Large enterprises often adopt hybrid models to balance flexibility and control, while SMEs may favor hybrid strategies due to cost and operational considerations.
  • Trends:
    • Cost Optimization: Rising cloud costs are a major driver, with companies seeking predictable expenses and better cost control
    • Performance and Latency: Applications requiring real-time processing are being repatriated to reduce latency and improve performance
    • Hybrid and Multi-Cloud Strategies: Most organizations opt for selective repatriation, maintaining a mix of public and private cloud infrastructure to leverage the strengths of each. Like Netflix, Hulu, Uber, and Airbnb, use hybrid cloud environments for on-demand scalability and data backup, leveraging both on-premises and public cloud infrastructure.

Some examples:

  • Dropbox: Initially built on AWS, Dropbox migrated most of its data to colocation facilities to gain control over hardware and network configurations. This move significantly optimized costs, reducing operational expenses.
  • GEICO: The insurance company began repatriating workloads due to high cloud storage costs. By moving back to on-premises infrastructure, GEICO aimed to reduce latency and costs associated with accessing its large datasets.
  • 37signals: Known for Basecamp and HEY, 37signals moved off AWS to on-premises colocation, citing financial benefits.

While cloud repatriation is a growing trend across various industries, driven by cost, performance, security, and compliance concerns, it is not a wholesale abandonment of the cloud. Many companies are adopting hybrid strategies to optimize their infrastructure investments.

 

Sources:

  1. https://www.sunbirddcim.com/blog/3-companies-repatriated-workloads-cloud-and-their-results  
  2. https://www.linkedin.com/pulse/cloud-repatriation-pick-pace-2025-procyonts-ydq1c  
  3. https://www.sunbirddcim.com/blog/why-are-more-companies-repatriating-workloads-cloud   
  4. https://www.linkedin.com/pulse/cloud-repatriation-gain-momentum-2025-vinay-joosery-9ytyf
  5. https://www.puppet.com/blog/cloud-repatriation

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Current Focus Areas: IT Services, AIOps, 5G, Cloud, Project Management. Also specialises in Application Rationalization, Cost Optimization, Benchmarking, Report writing, and Market Research.

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