The Cloud Isn't Magic
- ArcShift Team
- May 8
- 3 min read
Updated: Jun 18
Abstract: Public cloud providers have marketed their platforms as the inevitable future of IT. However, the reality is far from magical. Organizations are re-evaluating whether everything truly belongs in the cloud. This post explores why cloud exits, reverse migration, and cloud repatriation are gaining momentum and why your trusted IT advisor may not be incentivized to suggest them.
The Allure of Public Cloud Providers
For years, hyperscalers have sold an alluring vision: that the only future for IT infrastructure lies in the public cloud. It’s presented as fast, scalable, and almost “magical.” But here’s the unvarnished truth: You're not entering a futuristic ecosystem; you’re just renting someone else’s computer, often at a 40–80% margin.
Public cloud providers make it incredibly easy to get in. They offer free tiers, instant provisioning, dev credits, and frictionless onboarding. But when it comes to moving your workloads back and forth or considering a cloud exit, things get complicated. You suddenly face egress fees, architectural lock-in, and operational friction.
Understanding Egress Fees
Egress fees are charges that cloud providers impose when you move your data out of their systems. Many organizations find themselves unprepared for these costs. Once locked in, the thought of changing providers can seem daunting.
Cloud providers have a vested interest in preventing you from moving your data. Every workload you relocate means recurring revenue they lose. Therefore, they create barriers to reverse migration, making it expensive and complex.
The Tricky Business of Long-Term Commitments
Most businesses don’t even realize they are being gently herded into long-term commitments. Over time, the flexibility sold to them begins to feel more like a trap. Companies must ask themselves whether they want to be tied down by ongoing, often inflated cloud bills.
Why Most Advisors Won’t Recommend Cloud Repatriation
Many organizations depend on IT resellers or consultants for infrastructure strategy. However, there’s a significant issue at play. Cloud repatriation is often viewed as a one-time project. There's no recurring revenue for partners or sales reps when a customer exits the cloud. This makes recommending a cloud exit a tough sell for them.
On the other hand, cloud services provide highly predictable monthly revenue. Unless you are already experiencing issues, chances are no one will bring up moving workloads out of the cloud—even if it could save your company millions. This is how many teams end up trapped in oversized cloud bills, long after their workloads have stabilized.
The Implications of Cloud Repatriation
Retrieving your data and moving it back in-house can lead to numerous benefits. Here are a few you should consider:
Cost Savings
Cloud costs can accumulate rapidly. By transitioning back to an in-house structure, many organizations find significant cost savings. These savings can be reinvested into other areas of the business.
Improved Performance
When workloads are moved back in-house, companies often experience better performance due to reduced latency. Having your data closer to your operations can yield better performance metrics and user experiences.
Enhanced Security and Compliance
Managing your data on-premises often provides better security options than utilizing a public cloud. Organizations can tailor their security measures to meet specific compliance requirements.
Bottom Line: Not Everything Belongs in the Cloud Forever
At ArcShift, we specialize in helping companies exit the public cloud and reclaim control of their infrastructure. Whether it’s for cost savings, performance, security, compliance, or all of the above, we aim to offer you strategies that work for your unique needs.
Ready to explore your options? Schedule A Free Consultation to see how we can help you navigate your cloud journey effectively.
Margin estimates (40–80%) are based on cumulative markups across cloud provider pricing, distribution, reseller channels, and associated service layers.
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