The Great Cloud Repatriation Accelerates
- Karen Bessette
- Jan 14
- 2 min read
The "cloud-first" era is officially over, replaced by a "cloud-appropriate" strategy. Utilities now exist to undertake specific tasks and solve specific problems in a cloud setup. In a landmark shift, sources say around 86% of CIOs now plan to move workloads away from the public cloud in 2026, the highest rate ever recorded.
inSync Computer Solutions has never been a "cloud-first" advocate. We take a very cost versus benefit approach to technology & have averted the pitfalls of the "cloud". We use the cloud strategically but have never migrated all of our clients' servers to the cloud. We have two cloud repatriation case studies that exemplifies our approach to technology.
The Core Hook: The "Cloud Rent" Paradox
We 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 2x to 5x the cost of raw hardware.
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.
2. A 5-Year Financial Comparison (TCO)
To show "millions in savings," you need a Total Cost of Ownership (TCO) table. Here is a typical comparison for a mid-to-large scale workload (e.g., 200–500 vCPUs and 500TB of data).
Cost Category | Cloud (5-Year Total) | On-Premise (5-Year Total) |
Compute/Servers | $1,200,000 | $300,000 (One-time buy) |
Storage (S3 vs. NAS) | $900,000 | $150,000 (Hardware + Disks One-time buy) |
Data Egress Fees | $250,000 | $0 (Internal network) |
Datacenter | Included | $120,000 |
Maintenance/Staff | $150,000 (Cloud Ops) | $450,000 (SysAdmins/Colo) |
Total Estimated TCO | $2,500,000 | $1,020,000 |
Projected Savings | — | $1,480,000 (~59%) |
We've taken several clients out of the cloud & have saved those clients millions of dollars over a 6 year period. The key is keeping your server enviroment under warranty & protected from heat, water & power surges, & is secure. We have an excellent secure
co-location facility that we recommend to our clients.
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