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The Cloud Is Expensive. But Don't Kid Yourself - You Can't Just Repatriate

Shawn Petty
CloudBolt

There's been a lot of talk lately about cloud repatriation, including a recent piece by Will Kelly that resonated with a lot of us who remember the data center days.

Will raised some hard truths: most organizations don't have the muscle memory or staffing to even attempt going back on-prem. And as someone who lived through that era and now works with CIOs navigating the complexity of hybrid cloud, I'd say he's absolutely right.

But there's more to the story. Because the question isn't just can we go back. It's should we — and if not, what should we do instead?

The Cloud Gave Us a Lot - But at a Cost

The cloud, for all its challenges, gave us a lot.

It gave developers access to resources they could only dream about in the data center days: scaling infrastructure on demand, testing new services with a click, modernizing apps without months in procurement. You don't get Netflix without the flexibility cloud enables.

But that kind of freedom isn't free.

Cloud costs have ballooned. And for many companies, the ROI story just doesn't add up. Not because cloud doesn't offer value, but because that value is buried under sprawl, mismanagement, and workloads that were never a good fit in the first place.

Some organizations have started to rethink their strategy — and for a lucky few, that includes moving certain workloads back on-prem.

And I do mean lucky, because most companies can't even consider it.

But Most of Us Can't Go Back

There's no such thing as "moving back on-prem" unless you never left completely.

The only companies remotely positioned to evaluate repatriation today are the ones that still own and operate their own data centers or maintain co-located infrastructure. These are usually large, stable enterprises in industries like banking, insurance, or government — organizations that never fully bought into the "cloud-only" hype and kept legacy infrastructure around for regulatory, technical, or financial reasons.

For them, bringing a few workloads back on-prem isn't some multi-year transformation. It's a cost-savings play. They already have the physical space, the equipment, the staff (at least some of them), and the financial model to support CapEx. Repatriation is still an option.

For everyone else, it's not.

It's Not About Tools. It's About What's Missing.

Repatriation isn't hard because it's technical. It's hard because the industry forgot how to do it.

Over the last decade, companies didn't just migrate to the cloud — they erased the institutional knowledge required to run anything else. They downsized infrastructure teams, rewrote CapEx budgeting processes, and outsourced resiliency to the vendor. Now they're left holding the bill with no fallback plan.

I've worked with CIOs walking into environments where even a basic question like, "Could we run this on-prem?" can't be answered. Not because it's a bad idea, but because nobody remembers what it takes. There's no financial model. No ops staff. No crash cart in the closet. Just cloud-native apps built on managed services they can't unplug from.

It's like trying to rip out your foundation after the house is already built. Possible, maybe — but few are prepared for it.

Cloud Was Easy to Enter. Harder to Leave.

Getting into the cloud was easy. Some vendors would literally ship a semi-truck full of storage to your door, load it up, and drive it straight into their data center — for free.

Getting that data back? That'll cost you — byte by byte.

Even if you're willing to absorb those costs, repatriation isn't just about moving data. You have to rebuild the entire environment: floorspace, cooling, power, networking, monitoring, backups, security, and physical maintenance. I've met DevOps engineers who've never seen the inside of a server rack. That's not a criticism. It's simply the reality of how infrastructure knowledge has shifted. We trained a generation to build on APIs, not to cable switches or swap failing drives.

There's no undo button for that.

Repatriation ≠ Strategy. It's a Use Case

Cloud repatriation isn't a trend. It's a correction — a targeted one.

I've seen a handful of organizations move specific applications back on-prem because it made sense:

  • A heavy internal comms app that benefited from low-latency, local connectivity.
  • Stable workloads with predictable usage patterns and long shelf lives.
  • Data sovereignty concerns that made U.S.-based clouds a political risk.
  • Sunk costs in on-prem infrastructure they wanted to maximize.

That's not a strategy. That's triage.

For most orgs, repatriation is a fantasy. One that only looks attractive because the alternative feels so out of control.

What You Should Be Focusing On Instead

So what's the move?

If you're serious about controlling cloud costs and regaining operational leverage, don't romanticize the past. Focus on building real maturity where you:

  • Get visibility across your full estate, not just one vendor's dashboard.
  • Build cost-awareness into provisioning, not as an afterthought.
  • Invest in automation and policy enforcement so your cloud doesn't run wild.
  • Reduce your dependency on proprietary services unless they deliver outsized value.
  • Start treating portability as a long-term hedge — not a migration plan

You don't need to go backward to take back control. You just need to start acting like control is your responsibility again.

The Nostalgia Is Real. But It Won't Save You

I'll admit — there's a part of me that misses the old data center days. The fans. The crash carts. Troubleshooting at 2am and knowing exactly what you owned. There was a craft to it. A sense of accountability you don't always feel when everything is abstracted away.

But I also know those days are gone for most companies. Pretending you can bring them back with a CapEx line item and a couple new hires isn't realistic.

It's a spreadsheet fantasy.

If you want to rein in costs, do it with eyes open. If you want control, build it deliberately. Like Kelly said, spare your teams the posturing.

Cloud repatriation isn't your answer. Running the cloud like it's yours — that's the one that actually works.

Shawn Petty is Chief Customer Officer at CloudBolt

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The Cloud Is Expensive. But Don't Kid Yourself - You Can't Just Repatriate

Shawn Petty
CloudBolt

There's been a lot of talk lately about cloud repatriation, including a recent piece by Will Kelly that resonated with a lot of us who remember the data center days.

Will raised some hard truths: most organizations don't have the muscle memory or staffing to even attempt going back on-prem. And as someone who lived through that era and now works with CIOs navigating the complexity of hybrid cloud, I'd say he's absolutely right.

But there's more to the story. Because the question isn't just can we go back. It's should we — and if not, what should we do instead?

The Cloud Gave Us a Lot - But at a Cost

The cloud, for all its challenges, gave us a lot.

It gave developers access to resources they could only dream about in the data center days: scaling infrastructure on demand, testing new services with a click, modernizing apps without months in procurement. You don't get Netflix without the flexibility cloud enables.

But that kind of freedom isn't free.

Cloud costs have ballooned. And for many companies, the ROI story just doesn't add up. Not because cloud doesn't offer value, but because that value is buried under sprawl, mismanagement, and workloads that were never a good fit in the first place.

Some organizations have started to rethink their strategy — and for a lucky few, that includes moving certain workloads back on-prem.

And I do mean lucky, because most companies can't even consider it.

But Most of Us Can't Go Back

There's no such thing as "moving back on-prem" unless you never left completely.

The only companies remotely positioned to evaluate repatriation today are the ones that still own and operate their own data centers or maintain co-located infrastructure. These are usually large, stable enterprises in industries like banking, insurance, or government — organizations that never fully bought into the "cloud-only" hype and kept legacy infrastructure around for regulatory, technical, or financial reasons.

For them, bringing a few workloads back on-prem isn't some multi-year transformation. It's a cost-savings play. They already have the physical space, the equipment, the staff (at least some of them), and the financial model to support CapEx. Repatriation is still an option.

For everyone else, it's not.

It's Not About Tools. It's About What's Missing.

Repatriation isn't hard because it's technical. It's hard because the industry forgot how to do it.

Over the last decade, companies didn't just migrate to the cloud — they erased the institutional knowledge required to run anything else. They downsized infrastructure teams, rewrote CapEx budgeting processes, and outsourced resiliency to the vendor. Now they're left holding the bill with no fallback plan.

I've worked with CIOs walking into environments where even a basic question like, "Could we run this on-prem?" can't be answered. Not because it's a bad idea, but because nobody remembers what it takes. There's no financial model. No ops staff. No crash cart in the closet. Just cloud-native apps built on managed services they can't unplug from.

It's like trying to rip out your foundation after the house is already built. Possible, maybe — but few are prepared for it.

Cloud Was Easy to Enter. Harder to Leave.

Getting into the cloud was easy. Some vendors would literally ship a semi-truck full of storage to your door, load it up, and drive it straight into their data center — for free.

Getting that data back? That'll cost you — byte by byte.

Even if you're willing to absorb those costs, repatriation isn't just about moving data. You have to rebuild the entire environment: floorspace, cooling, power, networking, monitoring, backups, security, and physical maintenance. I've met DevOps engineers who've never seen the inside of a server rack. That's not a criticism. It's simply the reality of how infrastructure knowledge has shifted. We trained a generation to build on APIs, not to cable switches or swap failing drives.

There's no undo button for that.

Repatriation ≠ Strategy. It's a Use Case

Cloud repatriation isn't a trend. It's a correction — a targeted one.

I've seen a handful of organizations move specific applications back on-prem because it made sense:

  • A heavy internal comms app that benefited from low-latency, local connectivity.
  • Stable workloads with predictable usage patterns and long shelf lives.
  • Data sovereignty concerns that made U.S.-based clouds a political risk.
  • Sunk costs in on-prem infrastructure they wanted to maximize.

That's not a strategy. That's triage.

For most orgs, repatriation is a fantasy. One that only looks attractive because the alternative feels so out of control.

What You Should Be Focusing On Instead

So what's the move?

If you're serious about controlling cloud costs and regaining operational leverage, don't romanticize the past. Focus on building real maturity where you:

  • Get visibility across your full estate, not just one vendor's dashboard.
  • Build cost-awareness into provisioning, not as an afterthought.
  • Invest in automation and policy enforcement so your cloud doesn't run wild.
  • Reduce your dependency on proprietary services unless they deliver outsized value.
  • Start treating portability as a long-term hedge — not a migration plan

You don't need to go backward to take back control. You just need to start acting like control is your responsibility again.

The Nostalgia Is Real. But It Won't Save You

I'll admit — there's a part of me that misses the old data center days. The fans. The crash carts. Troubleshooting at 2am and knowing exactly what you owned. There was a craft to it. A sense of accountability you don't always feel when everything is abstracted away.

But I also know those days are gone for most companies. Pretending you can bring them back with a CapEx line item and a couple new hires isn't realistic.

It's a spreadsheet fantasy.

If you want to rein in costs, do it with eyes open. If you want control, build it deliberately. Like Kelly said, spare your teams the posturing.

Cloud repatriation isn't your answer. Running the cloud like it's yours — that's the one that actually works.

Shawn Petty is Chief Customer Officer at CloudBolt

Hot Topics

The Latest

Part 4 outlines the challenges enterprise face when adopting AI observability. The main challenge is that AI complexity compounds at every stage of maturity. LLM-based applications introduce new behavior, dependencies, and quality considerations, while Agentic AI adds further failure modes as systems make decisions and take actions ...

Part 3 reports on the current state of AI observability. Most experts agree: enterprises are moving faster with AI than they are with the operational discipline needed to run it safely ...

When discussing AI Observability, one of the first questions that arises: Is this just an extension of traditional observability or is this a whole new type of tool? Part 2 compares traditional observability with AI observability ...

In this extensive 14-part series that will post over the next three weeks, experts across observability and AI will provide insight and opinions on the need for AI Observability, the challenges, the benefits, the current state, and predictions for the future ...

Amid rising complexity, organizations are moving quickly toward agent-driven operations: AgenticOps, according to The Impact of Agentic AI on Network Operations, a new report from Cisco ...

AI, automation, and enterprise software give organizations an extraordinary amount of leverage. Work that once required hours can happen in minutes. Information buried across systems can be analyzed almost instantly. Complex workflows can be coordinated across teams with far less manual intervention. That leverage creates a temptation to start with the technology ...

Everyone wants to talk about models. Compute clusters. Benchmark scores that climb a fraction of a point and make headlines anyway. It's an easy conversation to have because it's measurable. But it's also increasingly beside the point ...

For more than a decade, the default infrastructure play has been simple. Move more workloads to the cloud, retire on-premises gear and treat the data center as a cost to shrink. That logic held while public cloud offered near-limitless capacity at predictable prices, and AI demand is now testing both halves of that assumption ...

Most enterprise IT leaders can tell you exactly how many applications are running across their organization. They can surface a dashboard showing telecom spend by region, pull a report on SaaS license utilization, or call up a real-time view of mobile device inventory. The data is there, and IT leaders have largely delivered on the promise of visibility. Yet, in most organizations, that visibility has not translated into business value ...

Government agencies are largely misjudging their level of AI governance as the technology permeates their organization, according to Racing to Deploy: How Public Sector AI Adoption is Moving Faster Than the Foundations Needed to Support It, a new report from SolarWinds ...