Is the Pendulum Swinging Back to On-Prem?
| Reason for Return to On-Prem | Explanation |
|---|---|
| Unexpectedly High Cloud Costs | Cloud computing is more expensive than initially anticipated, adding more to the bottom line than expected. The US dollar and fluctuating exchange rates exacerbate this, especially in certain regions. |
| Security Concerns | Cloud environments introduce security risks that are causing some companies to reconsider their cloud strategies. |
| Underperformance of Cloud Services | Cloud services aren’t always performing to expectations, leading to dissatisfaction and a reevaluation of on-premises solutions. |
| Lack of Cost-Effective Workloads | Not all workloads are more cost-effective in the cloud; some companies find on-premises solutions to be more efficient for specific tasks. |
| Inadequate Strategy and Planning | Companies are returning to on-prem due to a lack of proper planning and strategy in their initial cloud adoption. Without a clearly defined strategy outlining workload demands, costs, efficiencies, and use cases, organizations risk incurring unexpected expenses and operational inefficiencies. |
| Unmet Expectations | Amorphous promises about cost savings and unfulfilled expectations are contributing factors to companies reconsidering their cloud investments. |
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