Discover why some companies are migrating back to on-premise solutions from the cloud. Explore the key reasons, cost considerations, and a comparative analysis of cloud vs. on-premise.
The past few years have made cloud computing an undisputed king of IT infrastructure in business. Companies flocked to the cloud for cost-efficiency, scalability, and flexibility. The online survey portals show that the cloud adoption rate among enterprise organizations is over 94 percent. This is indeed a great adoption rate, and it’s also being noted that the cloud computing market will be worth around $832.1 billion by 2025.
Despite such a great cloud computing adoption rate, a counterintuitive trend of moving back to on-premise from the cloud has emerged. Yes, this is true. Now many companies have decided to reevaluate their strategies and get to on-premise solutions. This shift has raised some questions in everyone’s mind.
Continue reading and discover why companies are moving back to on-premise from the cloud. We have also included a comparative analysis of cloud vs. on-premise to help businesses make the right decision for them.Top Reasons Why Companies Are Migrating From the Cloud Back to On-PremisesReason 1: Security Concerns
In recent years, high-profile data breaches and security incidents have overshadowed the cloud. While cloud providers focus on and invest strongly in security measures, the complexity and cloud environments make them easy targets for cyberattacks. Due to this reason, some businesses are reevaluating their data security posture.
The on-premise working model provides better control over data security and compliance. Companies can implement tailored security measures and encryption protocols to safeguard sensitive information.Reason 2: Cost Considerations
Initially, the cloud computing model promised cost savings with its pay-as-you-go model, but many companies struggled with unexpected expenses. The metered pricing model can lead to budget overruns, especially when usage spikes unexpectedly or data storage needs grow exponentially. Some businesses have faced budget overruns of up to 40 percent in the past few years. Many times, ongoing subscription costs also accumulate over time.
The on-premises model requires upfront capital investment, although this can be more cost-effective in the long run for organizations with more predictable or stable workloads. It helps eliminate sudden budget overruns plus allocates resources based on the company’s anticipated needs.
