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

1.5k views7 Comments

Director IT | CTO Office | Digital Factory / Industry 4.0 in Hardware, 10,001+ employees
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.
2 Replies
CIO in Media, 2 - 10 employees

And it would probably take them a year to get their switches and infrastructure in place. By the time they have built their data center, it's already outdated.

Board Member in Healthcare and Biotech, 1,001 - 5,000 employees

Reflecting back on where most of us started, it would be an impossible task to move from cloud back to on-prem. There are also a lot of new cloud providers coming into the market.

Director of Engineering in Software, 11 - 50 employees
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.
CTO in Software, 11 - 50 employees
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.
Founder/CTO in Hardware, 11 - 50 employees
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. 
Director of IT, Self-employed
This can be reviewed in the lens of "How to Manage Concentration Risk in Public Cloud Services", one additional path would be going to multi-cloud model. 

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CTO in Software, 201 - 500 employees
Without a doubt - Technical Debt! It's a ball and chain that creates an ever increasing drag on any organization, stifles innovation, and prevents transformation.
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