Navigating the Process of Cloud Repatriation for Optimal Cost Savings
- Karen Bessette
- Jan 9
- 4 min read
Many organizations move their workloads to the cloud expecting lower costs & greater flexibility. Yet, some find that cloud expenses grow faster than anticipated or that performance & control needs are not fully met. In our experience, cloud costs double in 5 years, financially crippling businesses. This leads to a growing trend called cloud repatriation, where companies bring data & applications back from public clouds to on-premises or private environments. Understanding how to navigate this process can help businesses reduce costs while maintaining the benefits of cloud computing.
What Is Cloud Repatriation and Why Does It Matter?
Cloud repatriation means moving workloads, data, or applications from a public cloud environment back to a private data center or on-premises infrastructure. This shift often happens when companies realize that cloud costs are higher than expected or when compliance, latency, or security concerns arise.
Many organizations initially choose the cloud for its scalability and speed. However, over time, expenses related to storage, data transfer, & computer resources can add up. For example, a company running large databases with frequent queries might face steep charges for cloud storage & egress fees. By repatriating these workloads, they regain control over infrastructure costs and can optimize spending.
Identifying When Cloud Repatriation Makes Sense
Deciding to repatriate is not a simple choice. It requires careful analysis of current cloud usage & future needs. Here are some signs that repatriation could be beneficial:
Rising cloud bills that exceed budget forecasts
Performance issues due to network latency or cloud resource limits
Compliance or security requirements that demand tighter control over data
Stable workloads that do not require cloud elasticity
Long-term data storage where cloud costs are higher than owning hardware
For example, a financial services firm might find that regulatory rules require data to stay within specific geographic boundaries. Public cloud providers may not meet these constraints, prompting repatriation to a private data center.
The Core Hook: The "Cloud Rent" Paradox
Start by addressing the misconception that the cloud is always cheaper. While the cloud is excellent for "bursty" startups, for mature companies, it’s like renting a house forever instead of buying one.
The Problem: Public cloud markups can be 5x the cost of raw hardware.
In our experience, the 1st 12 months of cloud costs is equal to the hardware & software for an on premise solution.
The Opportunity: By moving to owned hardware, companies can shift from endless OpEx (Operating Expenses) to a one-time CapEx (Capital Expenditure) that depreciates over 5 years.
And we now know that the Cloud is not a 24/7/365 solution. The cloud goes down as recently demonstrated by M365 & AWS. We can create a 24/7/365 solution at a datacenter at a fraction of the cost of the cloud.
Steps to Plan a Successful Cloud Repatriation
Moving workloads back from the cloud involves more than just copying data. It requires a structured approach to avoid downtime, data loss, or unexpected costs.
1. Assess Workloads and Costs
Start by analyzing which applications & data sets are the best candidates for repatriation. Look at:
Cloud spend per workload
Performance metrics
Compliance needs
Future growth projections
Use cloud cost management tools to get detailed reports. This helps prioritize workloads that will yield the most savings or operational benefits.
2. Design the Target Environment
Decide whether workloads will move to on-premises servers, private clouds, or hybrid setups. Consider:
Hardware and software requirements
Network capacity and security
Backup and disaster recovery plans
For instance, a company might choose a hybrid cloud model where sensitive data stays on-premises, while less critical workloads remain in the public cloud.
3. Plan Data Migration
Data migration can be complex, especially for large databases or real-time applications. Plan for:
Data transfer methods (physical shipment, network transfer)
Synchronization to avoid downtime
Testing and validation after migration
Using incremental migration techniques can reduce service interruptions.
4. Update Operations & Monitoring
Once workloads are repatriated, update operational processes to manage the new environment. This includes:
Monitoring tools for performance and security
Staff training on new infrastructure
Adjusting backup & recovery procedures
Automation can help maintain efficiency and reduce manual errors.
Real-World Example of inSync's Cloud Repatriation
Cloud to co-location facility migration
Saved $1.5 million net over a 5 year period.
Their hosting fees went from $32,000/month to $1,500/month for the co-location facility.
Cloud to on-premise migration
Saved $2.8 million net over a 5 year period.
They were paying over $48,000 per month on Cloud computing. That cost was eliminated.
Avoiding Common Pitfalls
Cloud repatriation can deliver savings but also carries risks if not managed carefully:
Underestimating migration complexity can cause downtime or data loss
Ignoring ongoing cloud costs if some workloads remain in the cloud
Failing to update security policies for the new environment
Not involving all stakeholders such as IT, finance, and compliance teams
Clear communication and thorough planning reduce these risks.
Final Thoughts on Cloud Repatriation
Cloud repatriation is a strategic move that can help organizations regain control over costs and infrastructure. It requires careful evaluation of workloads, detailed migration planning, and ongoing management adjustments. Companies that approach repatriation thoughtfully can achieve significant savings while maintaining the flexibility and performance they need.
inSync's Thoughts on Cloud Repatriation
We take a very cost versus benefit approach to technology. We use the cloud thoughtfully. We have never put all of a clients' servers in the cloud. When the cloud became popular, all of our engineers wanted to put our clients' servers in the cloud. As inSync's CFO, I said no. I wasn't even for M365 until Microsoft made it cost prohibitive for the on premise solution.
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