Why cloud repatriation is gaining momentum: A comprehensive guide

Cloud computing has transformed business operations, but for many organisations, the initial enthusiasm for public cloud solutions is evolving into a more nuanced approach, including cloud repatriation.

But what exactly is cloud repatriation, and why are so many businesses considering it?

This guide will dive into why cloud repatriation is gaining traction, the key drivers and challenges, and practical insights for businesses contemplating the move back to data centre or hybrid models.

What is cloud repatriation?

So, what’s it all about – and does it signify a move backwards?

For CIOs, this concern is twofold: they want to maintain forward momentum in innovation while avoiding the perception that moving away from public cloud solutions is regressive. In reality, repatriation is less about abandoning the cloud and more about tailoring infrastructure to fit evolving needs.

At its core, cloud repatriation is the process of moving workloads, applications, or data from public cloud providers back to on-premise infrastructure or private clouds.

For example, a company might shift its storage and compute resources from a public cloud provider to an in-house data centre. This move enhances data control, cost predictability, and alignment with specific regulatory needs.

In fact, 61% of organisations are contemplating workload repatriation, a strategic shift where workloads or data are moved from the cloud back to data centres infrastructure or a different cloud provider, according to ADAPT.

Rethinking public cloud: Finding the right fit for modern business needs

Public cloud services have delivered substantial benefits to organisations and continue to be an essential part of many business strategies. However, as organisational demands become more complex, some limitations of a public cloud-only approach—such as rising costs, data control issues, and performance needs—are prompting businesses to explore hybrid or multi-cloud solutions, as well as cloud repatriation, to gain greater flexibility and control over their infrastructure.

But it’s important to understand that this significant shift isn’t a rejection of the cloud itself. As highlighted in a CIO article titled The Great Repatriation? IT leaders are re-evaluating their cloud strategies to optimise value by moving certain workloads back from the public cloud.

Rather than abandoning the cloud, they are fine-tuning their approach to achieve a better balance between cloud and data centre infrastructure, focusing on cost, performance, and security improvements.

Natalya Yezhkova, Research Vice-President at IDC, reinforces this point: “Repatriation is a good option to keep.” She explains that CIOs should continuously reassess whether the public cloud is delivering value, as workload needs, regulations, and cloud offerings—both in terms of price and functionality—evolve. “Organisations shouldn’t close the door to either option, public cloud or a dedicated environment,” she adds.

Key drivers of cloud repatriation

As organisations reassess their cloud strategies, several key drivers are influencing the trend toward cloud repatriation.

Cost

Unsurprisingly, cloud expenses can skyrocket quickly, particularly with variable pricing models and fees for data retrieval. A recent survey revealed that 67% of businesses reported unexpected cloud expenses, prompting a search for more predictable solutions. Repatriating workloads can significantly reduce operating costs, especially when leveraging existing infrastructure or adopting a hybrid approach.

Storage needs

At the same time, data storage requirements continue to rise exponentially, and public cloud storage fees often grow alongside them. With repatriation, businesses can scale storage affordably, using dedicated hardware or more economical storage solutions.

Compliance and Security

Undoubtedly, stricter regulations, such as GDPR and Australia’s Privacy Act, demand greater control over data. Many organisations find that on-premise or private cloud infrastructure offers better control for meeting these stringent standards. A 2024 IDC report found that 80% of companies expect to repatriate some level of compute and storage resources in the next 12 months due to security, privacy, and compliance concerns.

Control

Interestingly, public cloud environments often lack customisation, leading to inefficiencies for businesses with unique infrastructure needs. Moving certain workloads back data centre allows companies to regain control over their IT environment and customise it to meet specific demands.

Challenges of cloud repatriation

Initial migration costs

Returning to a data centre model requires upfront investments, including hardware purchases and infrastructure setup. Businesses need to assess the potential cost savings over time to justify the initial expenditure.

Rebuilding infrastructure

Repatriating workloads demands the re-establishment of physical infrastructure, from servers to storage solutions. This can involve significant time and investment, especially for organisations that had downsized their data centre capabilities.

Talent acquisition for data centre IT management

Shifting back to data centre operations requires skilled professionals to manage and maintain the infrastructure. As demand for specialised IT talent grows, companies may find it difficult to recruit and retain experienced personnel.

Considerations for cloud repatriation

Understanding the cost tipping point for Cloud repatriation

Cost management is often a decisive factor for repatriation. Analysis of data transfer, storage, and compute costs can reveal a tipping point where data centre becomes more cost-effective than the cloud. Identifying this threshold is key in determining if repatriation will yield long-term savings.

Justifying the upfront migration expenses

The initial investment required to repatriate can be substantial, but for many organisations, the expense is offset by future savings. Detailed financial planning and ROI analysis can help secure stakeholder support for this transition.

Analysing the costs: Cloud vs. Data Centre

While public cloud services offer flexibility, the cumulative costs can add up. Data Centre infrastructure, although involving higher initial capital expenditures, may present cost advantages over time, especially for stable workloads that do not require cloud elasticity.

Can a CIO recommend Cloud repatriation and maintain credibility?

CIOs may face scrutiny for shifting away from a public cloud-first strategy. However, a well-supported case that highlights cost savings, improved compliance, and operational control can demonstrate the value of repatriation as a strategic decision. In fact, a CIO’s credibility can be reinforced, not weakened, by positioning cloud repatriation as a response to the company’s evolving needs. As enterprise demands shift, CIOs increasingly recognise that a public cloud solution may not be the best fit for every workload. By framing cloud repatriation as a strategic, workload-specific adjustment rather than a retreat, CIOs not only maintain their credibility but also demonstrate their foresight and flexibility in adapting to complex, dynamic requirements.

Cloud options after repatriation

Repatriation doesn’t imply abandoning the cloud entirely. Hybrid and private cloud solutions allow businesses to integrate data centre control with the flexibility of the cloud. A hybrid approach enables companies to maintain mission-critical workloads on-premise while still leveraging cloud benefits for non-sensitive workloads.

Experts like Natalya Yezhkova from IDC, as reported in the recent CIO article, emphasise that repatriation is part of a broader hybrid cloud strategy, where businesses retain the flexibility to leverage both public and private clouds. IT leaders are now pursuing hybrid models that combine the strengths of both worlds, allowing for dynamic workload allocation based on performance, cost, and compliance needs. With 90% of enterprises expected to adopt multi or hybrid cloud by 2024, according to IDC, these strategies are rapidly becoming the norm, empowering businesses to optimise their infrastructure in line with evolving demands and strategic goals.

Optimising IT infrastructures doesn’t always mean cloud

At Interactive, we understand that your business needs a tailored IT strategy. Cloud repatriation is one path to optimise your IT environment, but we offer end-to-end IT services that cover everything from cloud management to on-premise infrastructure. If you’re considering cloud repatriation, our experts can guide you through every step.

Visit Interactive to learn more about our services, including data centres, cloud support, and private cloud.