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Why Companies Are Ditching the Cloud: The Rise of Cloud Repatriation

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2024-11-05 20:30:03

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The tech world has been abuzz with discussions about cloud repatriation, the practice of moving workloads from public clouds back to on-premises or private cloud environments. Recent moves by major enterprises suggest this isn’t just a theoretical discussion but a genuine strategic consideration for some organizations.

Two recent high-profile cases have brought cloud repatriation into the spotlight. David Heinemeier Hansson (DHH), the founder of 37signals (the company behind Basecamp and Hey), announced their complete exit from AWS, projecting savings of $2 million annually or over $10 million over five years. Their carefully documented journey has sparked intense debate about cloud economics and infrastructure strategies.

In parallel, GEICO, one of the largest automotive insurers in the United States, is actively repatriating many workloads from the cloud as part of a comprehensive architectural overhaul. Rebecca Weekly, GEICO’s VP of Platform and Infrastructure Engineering reveals a sobering reality about their cloud journey: “Ten years into that journey, GEICO still hadn’t migrated everything to the cloud, their bills went up 2.5x, and their reliability challenges went up quite a lot too.”