The cloud backlash has begun: Why big data is pulling compute back on premises
Cloud-first strategies may be hitting the limits of their efficacy, and in many cases, ROIs are diminishing, triggering a major cloud backlash.
What is driving the cloud backlash?
The cloud backlash is largely driven by rising costs, increasing complexity, and vendor lock-in associated with cloud services. As enterprises migrate more workloads to the cloud, expenses can double compared to on-premises systems. Additionally, new regulations around data sovereignty complicate cloud environments, making it challenging for companies to manage compliance across multiple regions.
How are companies responding to the challenges of cloud computing?
Many companies are shifting towards hybrid multicloud strategies, which involve using multiple public cloud providers alongside on-premises systems. This approach allows for greater flexibility and cost savings. For example, Walmart has diversified its infrastructure to include edge computing, resulting in an estimated 18% annual savings on cloud expenditures.
What should companies consider when developing their cloud strategies?
Companies should prioritize avoiding vendor lock-in by opting for vendor-agnostic solutions and ensuring that their applications are designed for hybrid compatibility. It's also advisable to conduct architectural reviews to assess the portability of workloads and consider pilot projects for on-premises deployments, especially for resource-intensive tasks like AI training.

The cloud backlash has begun: Why big data is pulling compute back on premises
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