Moving Out of the Cloud – or something hybrid – The Key is Managing your Costs Carefully
Over the past decade, we have been hearing the call of the Cloud, from various vendors. The Cloud has provided a wonderful technology shift in the wider IT industry and accelerated the introduction of new technologies and more efficient ways of doing things. There were a lot of promises made or implied in migrating to the Cloud, and these are still being made.
In February 2023, Andy Jassy (CEO of AWS) highlighted: “I think it’s also useful to remember that 90% to 95% of the global IT spend remains on-premises.”. Despite all the talk, pushing customers and customers deciding for themselves to go to the Cloud, there is still a very significant percentage of IT spending remaining on-premises. If you look at the revenue growth of these Cloud providers (Microsoft, Google, AWS and yes even Oracle), if all that revenue equates to just 5-10% of IT spend, just think of the potential revenues if they can convert 1-2% of that spend. It would be Huge!
We have seen lots of competition between the Cloud vendors with multiple price reductions over the last few years. Get the customers to sign up for their Cloud services. They will sign up when things look cheap, but will it remain that way.
In more recent years, say from 2022 onwards, we have seen some questioning the value of going to the Cloud. It seems to get more expensive as time progresses and in some cases receiving surprisingly large Bills. What at first appears to be cheap and quick to spin up new services, turns out to hit the credit card hard at a later time. We have seen many articles by some well-known companies that were early adopters of the Cloud, and have migrated back to being fully on-premises.
The following are some related articles and documentary about the Cloud and exit from the Cloud.
Why companies are leaving the cloud
90-95% of Global IT spend remains on-premises – says Amazon CEO
And check out this documentary from clouded.tv.
Ora-lytics 