Public Cloud
New innovations have transformed businesses, such as cloud computing, and there are no signs of slowing down. However, while companies initially jumped on the cloud bandwagon to maximize scalability and flexibility, many are rethinking that approach. A survey from Citrix revealed that 42% of companies have moved at least half their cloud-based workload out of the public cloud.
Why is this happening? What’s driving the cloud migration to hybrid or on-premises solutions? There are multiple reasons why businesses are leaving the public cloud behind, with cost, data privacy, and performance at the top of the list.
Cost Optimization
The number one reason businesses are leaving the public cloud is that it’s expensive—sometimes really expensive.
Major players like AWS, Microsoft Azure, and Google Cloud use a pay-as-you-go model that might initially seem affordable. However, charges can quickly skyrocket when you incur additional fees or fail to optimize usage. For example, you might have to pay egress fees to move your data out of the public cloud. Using the public cloud costs significantly more than owning or leasing private cloud infrastructure, and planning for expenses is harder.
Companies are also switching to on-premises solutions to avoid vendor lock-in. Relying on a single provider can simplify some aspects of cloud management, but it can also be cumbersome and expensive to move to another vendor better suited to your needs. Putting all your eggs into one basket might result in spending more money for less flexibility.
Data Privacy and Security
Data protection and privacy are non-negotiable, especially in industries with strict regulations, like healthcare, education, and finance. Your business cannot afford a security incident, whether a data breach or ransomware. Attacks cost money but can also torpedo your company’s operations and reputation.
Unfortunately, the public cloud environment has some major security risks, especially regarding access control, compliance, and overall data privacy. Many companies are no longer willing to accept these risks.
Stepping away from the public cloud into a private or hybrid cloud environment gives you more control over your company’s data. You can also implement customized security solutions that better address evolving cybersecurity threats.
Improved Performance
For some businesses, like financial trading, every millisecond counts, and you need an ultra-low latency environment to stay competitive. Poor performance in this area is another reason businesses are leaving the public cloud behind. The distance between your users and the public cloud’s data centers, plus the shared workload on these networks, can lead to frustrating delays that have a ripple effect on the bottom line.
Moving workloads that cannot tolerate delays to a private data center or on-premises solution closer to the actual users provides faster and more consistent performance.
Get Your Arms Around the Future
If your company wants to regain control and contain costs, understanding why businesses are leaving the public cloud behind might help you include cloud migration in your strategic plan. Review your public cloud spending, conduct a risk assessment, and evaluate whether a private cloud could improve performance to determine whether it's time to switch.
Additional Information for You
AWS: What’s the Difference Between Public Cloud and Private Cloud?
Microsoft Azure: Public Cloud vs Private Cloud vs Hybrid Cloud
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By Denis Wilson
Thanks for reading this post. I always take into mind that your time and attention are precious. And these posts need to be timely, to the point, and short. For more tips on thriving with small business technology, check out the other blog posts at DWPIA Blogs. You can also find me on LinkedIn, YouTube, and Facebook.
I am also a published author and speaker on cloud computing, remote-work, cybersecurity, and AI. I work extensively with business and professional associations to provide small business technology education programs.
Contact me if you have any questions about the subject. I'd be happy to spend 15 minutes discussing it with you.
