Cloud repatriation: why some companies are moving back to data centres

Posted on in

The rise of cloud repatriation

Cloud computing has been the go-to solution for many businesses seeking scalability and innovation. However, in recent years, some organisations have begun to reassess their strategies and are now moving some workloads, applications, and data from public cloud environments back to private data centres or hybrid setups. This shift highlights that while public cloud solutions continue to bring immense benefits, they’re not always the best fit for every company, all of the time.

This cloud repatriation doesn’t mark the end of cloud innovation – it represents a shift towards smarter, purpose-driven infrastructure decisions. In-house deployments and flexible colocation providers are back on the agenda for businesses when it comes to realising the greatest control and efficiency from their IT estate.

The case for repatriating workloads

For some businesses, public cloud services have reached a point of diminishing returns, prompting them to seek alternatives that provide better cost-efficiency and control, such as off-premise data centres/colocation facilities combined with private cloud. When companies repatriate workloads to data centres like ours, they often cite significant benefits that are difficult to achieve in the public cloud or hyperscale environments.

Several factors are driving this movement to data centres like ours:

  • Cost pressures: in some circumstances, public clouds can lead to unpredictable and rising operational costs, especially as workloads grow. Our clients benefit from controlled and predictable spending.
  • Reconsidering hyperscale: one trend we’re observing is organisations leaving hyperscale data centres in favour of more agile providers. One distinct challenge with hyperscale data centres is their shift towards property-led models – many are property companies that prioritise long-term contracts with lease covenants. This inherently limits flexibility for businesses that need to adapt quickly to emerging operational demands. This rigidity is particularly problematic for organisations repatriating workloads that prioritise control and customisation, which are often stifled by the hyperscale model. Our clients continuously highlight that they value flexibility in both infrastructure design and contract terms – something hyperscale providers frequently lack.
  • Data control: some organisations, particularly those operating in sectors where data sovereignty and compliance are paramount, require greater visibility and control over their data than public clouds can offer. Additionally, some businesses may need to maintain a data centre presence in a single geographic location, with the added assurance of being able to directly access and manage their own hardware
  • Performance optimisation: the ability to adapt infrastructure to workload requirements, rather than trying to fit into predefined models proposed by more off-the-peg hyperscale solutions, facilitates improved performance and reliability.
  • Hardware-as-a-Service (HaaS): this model provides flexibility similar to that offered by public cloud services, but with the ability to support far more complex requirements. When combined with our adaptable colocation services, organisations can enjoy the best of both worlds – cloud-like flexibility alongside robust infrastructure control and the capacity to tackle greater operational complexities.
  • Good working relationships: our business model prioritises close working relationships based on collaborative working to create bespoke solutions over and above a tenant/landlord relationship.

Scalability and flexibility offered by colo

For businesses choosing colocation, the transition doesn’t need to mean compromising on agility – data centres like ours offer scalable, configurable environments that can adapt to specific business needs. We understand the importance of customer-centric contracts that avoid the rigidity of traditional models, and we also understand that cloud resources are part of the equation for the right workloads. As such, our on-ramps to the industry’s top public cloud providers such as AWS, Google Cloud, Microsoft Azure, and Oracle facilitate public cloud connections for our clients who require them.

This flexibility makes it easier for companies to move out of public clouds or hyperscale facilities and into a more bespoke environment, or to get the best of both worlds by combining cloud with our colocation:

  • Flexible contracts and footprint: contract flexibility and the ability to flex footprint up or down based on changing requirements – solutions that grow with your business.
  • Ease of collaboration: collaborative partnerships – so much more than a tenant/landlord relationship.
  • Customised solutions: by tailoring infrastructure to meet specific workloads, we can help companies manage costs and achieve their performance goals.

Making your choice

If you’re currently exploring your options for migrating workloads, we’d love to show you how our facilities and flexible approach can help you make the most of your infrastructure investments. Get in touch with our team to learn more about simplifying cloud repatriation for your business.

Talk to us
Back to Insights