Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation
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Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation
#2Seems like CIOs are finally listening to the Grey beards.
Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation
#3I would guess that all of these companies that are moving back are throwing in the towel on their cloud migration/modernization plans under the guise of "repatriation" when it's really poor execution without any responsibility.
Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation
#4I don't know that 37Signals counts as a "major enterprise". Their Cloud exodus can't have been more than a few dozen servers, right?
Meanwhile AWS is growing at 20%/year, Azure at 33% and GCP at 35%. That doesn't seem compatible with any kind of major cloud repatriation trend.
Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation
#5"Major organizations like 37signals and GEICO". Sorry, what? Citing two companies? And how does a $37bn company compare to 37signals?
Such an odd pair of companies to choose. Is DHH friends with the author?
I'd be more interested in statistics about total cloud vs onprem spend across all companies, over time, to support assertion that "companies are ditching the cloud"
A very poor article
Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation
#6I don't know that 37Signals counts as a "major enterprise". Their Cloud exodus can't have been more than a few dozen servers, right? Meanwhile AWS is growing at 20%/year, Azure at 33% and GCP at 35%. That doesn't seem compatible with any kind of major cloud repatriation trend.
How much of that is what technologists would consider "cloud" (IAAS, PAAS) versus what someone on the business side of things would consider "cloud" - office365, google gsuite, etc?
Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation
#7Almost any story about cloud repatriation is a story about a failure of the market to act competitively rather than someone actually able to do it for less money than the cloud providers can.
The big providers margins are crazy, like over 50% which is normal for a software / service business but they are essentially hardware businesses.
Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation
#8I don't know that 37Signals counts as a "major enterprise". Their Cloud exodus can't have been more than a few dozen servers, right? Meanwhile AWS is growing at 20%/year, Azure at 33% and GCP at 35%. That doesn't seem compatible with any kind of major cloud repatriation trend.
How much of that is what technologists would consider "cloud" (IAAS, PAAS) versus what someone on the business side of things would consider "cloud" - office365, google gsuite, etc?
Given that AWS is doing $100B in annual revenue and still growing at 17% YoY ... and they do NOT have a collaboration suite (office/gsuite) - it'd say at least for AWS it's nearly all IaaS/PaaS.
Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation
#9Earlier quoted context omitted.
How much of that is what technologists would consider "cloud" (IAAS, PAAS) versus what someone on the business side of things would consider "cloud" - office365, google gsuite, etc?
Given that AWS is doing $100B in annual revenue and still growing at 17% YoY ... and they do NOT have a collaboration suite (office/gsuite) - it'd say at least for AWS it's nearly all IaaS/PaaS. https://www.theregister.com/2024/05/01/amazon_q1_2024/
I'd agree on IaaS/PaaS being the main driver. Id guess that everyone is running away from serverless offerings from all the main cloud providers. It's just day 1 lock in to a platform with no shared standards. It's very uncompetitive and kind of slow to innovate.
Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation
#10The article is incredibly thin on details.
In my experience, it comes down to two factors:
1. Egress cost. Cloud hosting providers have absolutely insane egress pricing. It's beyond stupid at this point, if you want to host anything bandwidth-intensive.
2. Storage pricing.