Monday, March 20, 2023

New Study Reveals 72% Of Enterprises Pivoted From Public Cloud To On-premises

By Vishal Muktewar - March 31, 2021 4 Mins Read

New Study Reveals 72% of Enterprises Pivoted from Public Cloud to

Even though the public cloud is all the rage nowadays, many enterprises still prefer on-premise to the public cloud. 

To adapt to the radical circumstances created by the pandemic, many enterprises opted for public clouds to sustain their business operations. However, without a strong cloud strategy in place, many enterprises struggled in the transition process. This led to them shifting back to on-premise data centers. 

In fact, a survey conducted by Virtana of 350 IT decision-makers based in the US and UK, found that almost 95% of enterprises have moved some applications to the cloud.

They agree that the process to move applications to the cloud wasn’t as seamless as they had hoped initially. The same report also found that over 72% of enterprises had no choice but to move one or more migrated workloads or applications back on-premises. 

Listed below are some of the top reasons that forced IT leaders to make this decision:

  • 41% of IT leaders stated that they shouldn’t have moved certain applications to the cloud in the first place.
  • 36% said that technical issues surrounding cloud provisioning left them no choice but to move back on-premises.
  • Another reason for shifting away from the cloud is the degradation of performance (29%) and unexpected cloud costs (20%).

Also Read: The UK Plans to Leverage Innovative Technologies to Become Global Tech Leader

This increase in repatriation, along with the above-stated reasons, reveals that enterprises struggle during the cloud migration process. Specifically, the complexities around lack of visibility into application dependencies, what applications are suitable for migration, as well as not having a thorough grasp over  how the workloads will behave in the public cloud once they are migrated, played a critical role in IT leaders’ decision to move back to on-premise data centers. 

The report also uncovered the lack of preparation on the part of enterprises in implementing cloud-first or cloud-only strategies, which ultimately forced many to shift applications back to on-premises.

Not just that, even cloud-native enterprises now must strengthen their efforts to optimize their multi-cloud strategy. Hence, before migrating to the cloud, enterprises must thoroughly analyze and understand what they want to achieve from the cloud implementation. 

As per Kash Shaikh, CEO, Virtana, “We encourage companies to take a workload-centric approach to their cloud strategy, as that is where the business value lies—the cloud is an operating model.” He continued to explain, “In order to avoid becoming part of the 72% of companies that have had to move applications back on-premises, it is important to take a step back and conduct an analysis.

The best place to start is by understanding your workloads on-premises in the data center. Not every workload works best in the cloud. You don’t want to simply migrate existing workloads from your data center to the public cloud—nor should you try to transform everything. You need to look at both the behavior and the business value of your workloads before making migration decisions.”

Also Read: Strategies For CIOs To Rethink Team Pace For Post-COVID Times

Despite the challenges surrounding the cloud, IT leaders are considering launching public cloud initiatives that will play a strategic role in the long-term goals of their enterprises. The survey identified:

  • 68% of total enterprises have already migrated at least 25% of their applications to the public clouds. Supporting analysts have also found that over 20% of applications have migrated to the cloud.
  • Even in today’s economic environment, 78% of enterprises are increasing their investments in public clouds.
  • As enterprises embrace the hybrid and multi-cloud environment, 81% of the IT leaders stated they are employing more than one public cloud provider.

From Virtana’s report, it is clear that enterprises need to analyze their applications’ behavior on different cloud environments, the cost of public cloud, and integration between various applications before they decide to move full-steam ahead with future cloud initiatives.

Check Out The New Enterprisetalk Podcast. For more such updates follow us on Google News Enterprisetalk News.


Vishal Muktewar

Vishal Muktewar is a Senior Correspondent at On Dot Media. He reports news that focuses on the latest trends and innovations happening in the B2B industry. An IT engineer by profession, Vishal has worked at Insights Success before joining Ondot. His love for stories has driven him to take up a career in enterprise journalism. He effectively uses his knowledge of technology and flair for writing, for crafting features, articles and interactions for technology enterprise media platforms.

Subscribe To Newsletter

*By clicking on the Submit button, you are agreeing with the Privacy Policy with Enterprise Talks.*