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Balancing the Rising Costs of Public Cloud

Ahsan Siddiqui
Arcserve

The spiraling cost of energy is forcing public cloud providers to raise their prices significantly. A recent report by Canalys predicted that public cloud prices will jump by around 20% in the US and more than 30% in Europe in 2023. These steep price increases will test the conventional wisdom that moving to the cloud is a cheap computing alternative.

Indeed, many organizations are already looking at their higher cloud bills and assessing whether it still makes sense to keep moving their infrastructure to the cloud. They do have alternatives.

For instance, for solutions used regularly and persistently, it might make financial sense to bring those in-house rather than host them in the cloud. Owning the infrastructure and managing it yourself could be more cost-effective in the long run.

On the other hand, more complex technologies, and solutions with a high entry cost, such as artificial intelligence, remain good candidates for cloud hosting because they require so much infrastructure and personnel to run in-house. The cloud also remains an excellent option for specific services and solutions where more elasticity is required. This includes technologies that need to be scaled up quickly for a defined period, such as the last few days of each month or quarter when closing the books, then scaled back down.

These are just some issues that organizations should assess when determining if they should keep their data and infrastructure in the cloud. Moving them back on-premises or transitioning to a hybrid infrastructure entails keeping some data and applications in the cloud while returning others to an on-premises infrastructure. From now on, all organizations must take a step back and assess what will work best for them to find the right balance.

The Benefits of Hybrid Cloud

A hybrid cloud has a lot of advantages. Organizations adopting a hybrid cloud approach can more easily control costs and manage their data wherever it resides — on-premises, in a public or private cloud. Many organizations now face a range of emerging trends and threats that impact how they run their business and find the flexibility of a hybrid cloud essential.

A hybrid data center is adaptable. It's a viable and practical system that enables companies to meet the growing threat of ransomware attacks while taking on today's evolving business demands — all in real time. A hybrid data center provides strong security, efficient performance, reliability, scalability, agility, and cost-efficiency.

But a hybrid data center requires work. Implementing and operating one presents several IT-management challenges. Yes, a hybrid data center allows a business to efficiently store and shift workloads according to need and better protect its sensitive data. But a hybrid data center brings more complexity to managing servers, networks, storage, and software across the IT landscape.

For instance, organizations running a hybrid cloud must secure their data and applications both on-premises and in the cloud. They also must be able to recover data and applications on-premises or in the cloud, wherever the company initially hosted the data and applications. And they must handle backup and recovery across a hybrid environment. To do all this, they must have a data management and storage solution that meets the needs of a hybrid data center.

The Rise of Data Repatriation

As the cost of the cloud continues to balloon, many companies will take the dramatic step of "repatriating" workloads to preserve precious IT budgets. Already, rising energy prices are forcing organizations to rethink their cloud strategy and start repatriating their data from the cloud to on-premises.

Indeed, market intelligence firm IDC research shows that most organizations are now shifting workloads from the cloud back to on-premises data centers. In the IDC survey, 71% of respondents said they plan to move some or all of the workloads they're now running in public clouds back to on-premises environments in the next two years. A mere 13% said they plan to run all their workloads in the cloud.

There are many reasons why companies are repatriating their workloads from the cloud to on-premises. These include security, performance, regulatory compliance, and a desire for better control of the IT infrastructure. Another reason is cost, which can rise quickly and unexpectedly. Workloads often start small and demand a manageable expenditure, but when workloads jump — which they frequently do — so does the spending, which a company may not have anticipated.

Data volumes in the cloud have increased to a point where they're often not manageable. Moving some of this data back on premises can bring benefits beyond lower costs, such as better security and enhanced performance.

But as companies move their data back on-premises, they face several challenges. They need a data-storage solution that can protect their data wherever it resides — on-premises, offsite, or in the cloud. They also need a storage solution that ensures their data is available 24/7/365, even in unforeseen circumstances.

Ideally, they also need a storage solution that provides analytics that can rapidly decide what sets of data are critical to operations and what sets are not. With these analytics, organizations can efficiently determine which datasets they can place in the cloud, which can be stored locally, and which they should bring back on-premises. Analytics also enables companies to decide which data they must back up and which doesn't. With this, organizations can maintain an intelligent, tiered data architecture that ensures quick access to critical data and saves costs by identifying data they can store in less expensive, less readily accessible media.

Your To-Do List for Cloud Deployment in 2023

As cloud costs rise, organizations must reexamine their data storage systems. They must implement solutions that enable them to manage their workloads cost-effectively and, at the same time, ensure that their data is always accessible and secure.

Ahsan Siddiqui is Director of Product Management at Arcserve

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Balancing the Rising Costs of Public Cloud

Ahsan Siddiqui
Arcserve

The spiraling cost of energy is forcing public cloud providers to raise their prices significantly. A recent report by Canalys predicted that public cloud prices will jump by around 20% in the US and more than 30% in Europe in 2023. These steep price increases will test the conventional wisdom that moving to the cloud is a cheap computing alternative.

Indeed, many organizations are already looking at their higher cloud bills and assessing whether it still makes sense to keep moving their infrastructure to the cloud. They do have alternatives.

For instance, for solutions used regularly and persistently, it might make financial sense to bring those in-house rather than host them in the cloud. Owning the infrastructure and managing it yourself could be more cost-effective in the long run.

On the other hand, more complex technologies, and solutions with a high entry cost, such as artificial intelligence, remain good candidates for cloud hosting because they require so much infrastructure and personnel to run in-house. The cloud also remains an excellent option for specific services and solutions where more elasticity is required. This includes technologies that need to be scaled up quickly for a defined period, such as the last few days of each month or quarter when closing the books, then scaled back down.

These are just some issues that organizations should assess when determining if they should keep their data and infrastructure in the cloud. Moving them back on-premises or transitioning to a hybrid infrastructure entails keeping some data and applications in the cloud while returning others to an on-premises infrastructure. From now on, all organizations must take a step back and assess what will work best for them to find the right balance.

The Benefits of Hybrid Cloud

A hybrid cloud has a lot of advantages. Organizations adopting a hybrid cloud approach can more easily control costs and manage their data wherever it resides — on-premises, in a public or private cloud. Many organizations now face a range of emerging trends and threats that impact how they run their business and find the flexibility of a hybrid cloud essential.

A hybrid data center is adaptable. It's a viable and practical system that enables companies to meet the growing threat of ransomware attacks while taking on today's evolving business demands — all in real time. A hybrid data center provides strong security, efficient performance, reliability, scalability, agility, and cost-efficiency.

But a hybrid data center requires work. Implementing and operating one presents several IT-management challenges. Yes, a hybrid data center allows a business to efficiently store and shift workloads according to need and better protect its sensitive data. But a hybrid data center brings more complexity to managing servers, networks, storage, and software across the IT landscape.

For instance, organizations running a hybrid cloud must secure their data and applications both on-premises and in the cloud. They also must be able to recover data and applications on-premises or in the cloud, wherever the company initially hosted the data and applications. And they must handle backup and recovery across a hybrid environment. To do all this, they must have a data management and storage solution that meets the needs of a hybrid data center.

The Rise of Data Repatriation

As the cost of the cloud continues to balloon, many companies will take the dramatic step of "repatriating" workloads to preserve precious IT budgets. Already, rising energy prices are forcing organizations to rethink their cloud strategy and start repatriating their data from the cloud to on-premises.

Indeed, market intelligence firm IDC research shows that most organizations are now shifting workloads from the cloud back to on-premises data centers. In the IDC survey, 71% of respondents said they plan to move some or all of the workloads they're now running in public clouds back to on-premises environments in the next two years. A mere 13% said they plan to run all their workloads in the cloud.

There are many reasons why companies are repatriating their workloads from the cloud to on-premises. These include security, performance, regulatory compliance, and a desire for better control of the IT infrastructure. Another reason is cost, which can rise quickly and unexpectedly. Workloads often start small and demand a manageable expenditure, but when workloads jump — which they frequently do — so does the spending, which a company may not have anticipated.

Data volumes in the cloud have increased to a point where they're often not manageable. Moving some of this data back on premises can bring benefits beyond lower costs, such as better security and enhanced performance.

But as companies move their data back on-premises, they face several challenges. They need a data-storage solution that can protect their data wherever it resides — on-premises, offsite, or in the cloud. They also need a storage solution that ensures their data is available 24/7/365, even in unforeseen circumstances.

Ideally, they also need a storage solution that provides analytics that can rapidly decide what sets of data are critical to operations and what sets are not. With these analytics, organizations can efficiently determine which datasets they can place in the cloud, which can be stored locally, and which they should bring back on-premises. Analytics also enables companies to decide which data they must back up and which doesn't. With this, organizations can maintain an intelligent, tiered data architecture that ensures quick access to critical data and saves costs by identifying data they can store in less expensive, less readily accessible media.

Your To-Do List for Cloud Deployment in 2023

As cloud costs rise, organizations must reexamine their data storage systems. They must implement solutions that enable them to manage their workloads cost-effectively and, at the same time, ensure that their data is always accessible and secure.

Ahsan Siddiqui is Director of Product Management at Arcserve

Hot Topics

The Latest

The enterprises that will define the next decade are not the ones that deployed the most technology. They are the ones who understood what their technology was actually doing. That distinction is not a philosophical point. It is the central operational challenge facing every organization that has spent the last five years modernizing at speed ...

AI is becoming the operating system of the enterprise. It acts as an invisible coordination layer that understands intent, connects systems, and executes work across complex SaaS environments. Previously, employees had to click through multiple systems — CRM, ERP, support tools, collaboration platforms — to complete a single task. Now, instead of navigating each application manually, they can simply state what they need to accomplish ...

In 2026, the cost of downtime or an outage is no longer just a technical inconvenience; it's a $600 billion wake up call for global businesses. As our digital ecosystems become  more interconnected, each touchpoint introduces new risks and multiplies the consequences when things go wrong. And the data is clear: aggregate downtime costs  for Global 2,000 companies have surged 50% since 2024, reaching a staggering $600 billion ...

Deloitte found that 74% of enterprises expect to deploy agentic AI solutions in the next 24 months. However, the rush to deployment is outpacing foundational work, though. Only 21% of enterprises have fully formed agent governance models in place. The result? AI agents deployed without guidance or governance begin to function as fragmented islands of complexity ...

Cloud spending is no longer viewed as a passthrough IT expense, but as a strategic financial lever that directly impacts innovation capacity, profitability and enterprise resilience, according to the CFO Cloud Cost Optimization Report from Azul ...

As AI moves from generating responses to performing actions, the need for trust increases exponentially. And as organizations enlist AI agents for increasingly sophisticated business processes, trust is going to be the single most important theme for spurring adoption. What can organizations do to build trustworthy AI agents? ...

I've spent a lot of time in the channel, and one thing I keep coming back to is this: a partner program is only as good as what it looks like in the field. Many programs look great on paper, but when a partner is in front of a customer navigating a complex hybrid environment or trying to make the case for AI-powered observability, the gap between what a vendor promises and what it actually delivers becomes very clear, very fast ...

Enterprises today operate in a real-time environment where uninterrupted access to trusted data has become a baseline expectation for users, applications and automated systems. Traditional DataOps models, built on manual effort and human triage, cannot keep pace with this always active demand. AI agents are emerging as the operational backbone, ensuring consistent data availability, reinforcing trustworthiness and enabling a level of scale that manual processes cannot achieve ...

For decades, trust in the digital workplace rested on familiar signals. We trusted faces on video calls, voices on the phone, and emails that appeared to come from people we knew. These cues felt human and intuitive. They anchored how decisions were made, approvals were granted, and access was authorized. AI-powered deepfakes have quietly broken that model ...

Cloud migration was supposed to be a one-way door. For most enterprises, it turns out it isn't. Cloud data repatriation is a real and growing trend. A new survey ... finds that 89% of organizations plan to expand their on-premises infrastructure footprint over the next two years — and 75% have already moved at least some workloads back from public cloud in the past 24 months. The findings point to a broad rethinking of where data belongs ...