Cloud Costs. The cloud has transformed how businesses manage IT, offering convenience for document creation, file sharing, and communication. Yet, for CFOs managing budgets, cloud expenses often feel as unpredictable as "how long is a piece of string." Unused servers and poorly managed data drive up costs, turning the cloud into an expensive IT solution.
Master Your Cloud, Cut The Costs.
Cloud cost unpredictability
This unpredictability is causing many businesses to rethink their cloud strategies, with some opting for cloud repatriation—moving data and services back to on-premises infrastructure. Why? Here are the key drivers:
Cost Management: Cloud usage unpredictability and hidden fees can lead to ballooning expenses. On-premises solutions often provide better cost control.
Performance Optimisation: Applications requiring minimal latency or high-speed processing often perform better on dedicated hardware.
Data Privacy: On-premises storage can simplify compliance with regulations like GDPR.
Security: Direct control over infrastructure can enhance security.
Avoiding Vendor Lock-In: Flexibility in IT systems becomes easier when businesses aren’t tied to one cloud provider.
A 2024 Barclays survey revealed that 83% of enterprise CIOs plan to repatriate workloads, up from 43% in 2020. High-profile companies like Dropbox and Adobe have already made the shift.
But this isn’t a one-size-fits-all solution. Transitioning back requires significant investment, strong IT resources, and a clear understanding of operational complexity. Hybrid models, blending cloud and on-premises systems, are increasingly popular.
To address rising cloud costs, businesses must evaluate their workloads, utilise cost calculators, monitor expenses, and seek expert advice. Small, incremental changes can help refine strategies and predict costs more effectively.
Ultimately, whether through cloud repatriation or hybrid solutions, organisations are prioritising smarter, more predictable IT investments. Explore this evolving trend further on our page: The Challenge of Predicting Cloud Costs.
