Will rising cloud costs lead to a reverse migration, from cloud to on-prem?

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I don't think rising costs will make people migrate back to on-prem because they're too invested. If you're already in the cloud, you would have to bring everything down and set up an on-prem environment, which is too costly. We're using a hybrid environment at Flex; we've always been on-prem and have been slowly moving into the cloud. We're not 100% on the cloud, but for the companies who are cloud-native, reinvesting isn’t feasible. It wouldn’t just incur infrastructure costs, you also need resources to support it, etc. Redundancy isn't built-in, so you now have to create redundancy within your system and absorb the cost of getting it up and running. Those costs outweigh what it would cost you to stay on cloud and pay a bit more. When I think about the startups of the world that consist of 20 to 30 people who wrote software in the cloud, they wouldn’t switch to on-prem even if cloud costs have doubled.

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There might be cloud migrations due to rising costs, but people won’t migrate to on-prem environments. Those who are finding AWS too expensive might move to a cheaper solution, but they will still stay on the cloud. They’ll have to deal with a bit of downtime and handle security issues themselves, but people might decide they’re okay with that.

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There are often plenty of inefficiencies in the cloud setup where you can trim fast or migrate those tasks that can be deprioritized. You could probably outweigh any cost increase by investing in optimizing what you already have.

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No, rising cost will not make people migrate back since they already committed to cloud for those things they have moved. Rising costs and availabilty equipment might make people considering moving more off depending on what it is and any data sensitivity issues, or business impacts.

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This can be reviewed in the lens of &#34;How to Manage Concentration Risk in Public Cloud Services&#34;, one additional path would be going to multi-cloud model.

Will rising cloud costs lead to a reverse migration, from cloud to on-prem?

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