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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

#11

Post by Izikiel43 »

WaxProlix wrote: post #6
jsnell wrote: post #4

I 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?

Afaik, MSFT shows growth in Azure and Office as separate things during earning reports, so the % mentioned before is just Azure, and 31% is huge.

Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation

#12

Post by discodave »

Meanwhile, from Q3 Amazon earnings:

* AWS segment sales increased 19% year-over-year to $27.5 billion.

That means AWS brought in $4.3 BILLION more dollars in Q3 2024 vs 2023.

That's a huge amount of incremental revenue growth. If the net movement of workloads were out of the cloud, then it would have to show up in the results of Intel / TSMC / Equinix et. al.

I just took a look, and Equinix quarterly revenue is $2.1B.

Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation

#13

Post by kjellsbells »

Kjell's Law: the cost of a platform eventually exceeds the cost of the one it replaced. But each cost is in a different budget.

We seem to have replaced cooling and power and a grumpy sysadmin with storage and architects and unhappy developers.

Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation

#14

Post by discodave »

gonzo41 wrote: post #9
tiffanyh wrote: post #8

Earlier quoted context omitted.

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.

Amazon loves it when you run idle EC2 instances ($$$) rather than using Lambda.

Most real workloads I've seen (at 3 startups, and several teams at Amazon) have utilization under 10%.

Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation

#17

Post by toomuchtodo »

candiddevmike wrote: post #3

I 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.

It was easy when everyone was spending cheap money for marketing and other vanity around moving to the cloud. But now that money costs something, and everyone has to control costs, repatriation is the new hotness when you want to save opex with capex. Cloud margins are org savings.

The trick is to not care, and be proficient as a technologist; you make money either way riding the hype cycle wave. Shades of Three Envelopes for the CIO and whomever these decisions and budgets roll up to.

https://kevinkruse.com/the-ceo-and-the-three-envelopes/

(If you genuinely get value out of premium compute and storage at a cloud provider, you're likely going to keep doing that of course, startups, unpredictable workloads, etc)

Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation

#18

Post by discodave »

switch007 wrote: post #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

The statistics can be found in the public earnings of AWS vs the companies that would get paid for on-prem workloads (Equinix, Dell/HP/IBM, Intel etc).

Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation

#19

Post by tschellenbach »

Chat, feeds and moderation run on AWS for us. Video on the other hand is bandwidth intensive. So we run the coordinator infra on AWS, but the SFU edge network on many different providers.

I think the cloud is good for some things, and not so great for others. S3 is fairly cost effective. RDS is expensive, bandwidth is crazy etc.

(5M a year spend on AWS atm.)

Re: Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation

#20

Post by deely3 »

discodave wrote: post #12

Meanwhile, from Q3 Amazon earnings: * AWS segment sales increased 19% year-over-year to $27.5 billion. That means AWS brought in $4.3 BILLION more dollars in Q3 2024 vs 2023. That's a huge amount of incremental revenue growth. If the net movement of workloads were out of the cloud, then it would have to show up in the results of Intel / TSMC / Equinix et. al. I just took a look, and Equinix quarterly revenue is $2.1B…

Oh, correlation.
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