Many businesses are starting to rethink how they use the cloud. Some are even moving certain workloads out of the cloud and back to their own servers. This shift is known as cloud repatriation, where companies are re-assessing what belongs in the loud and what’s better kept in-house.
Why are businesses re-evaluating their cloud set-up?
Many businesses are re-evaluating their use of cloud services due to these key factors:
1. Costs are getting out of hand: The cloud costs aren’t always predictable, and companies are realizing they’re paying extra for things like unused capacity or fees to move data out. Statista found that 30% of total cloud spending is spent on departure fees and overprovisioning.
2. Security and control: When your data is stored in the public cloud, you don’t always know where it’s stored or respond to a breach in a timely manner. Even the biggest, most reputable providers are subject to breaches and outages, and many industry-regulated companies can’t afford that risk.
3. Compliance requirements are strict: Industries such as finance, government, and defense are required to have certain data on-premise to meet regulations. This ensures companies are meeting data protection standards.
4. Performance and latency: Certain workloads require low-latency (minimal delay between an action and the system’s response) or guaranteed uptime. The cloud can’t always provide that, while local servers can give you more predictability.
5. Avoiding vendor lock-in: Depending on just one cloud provider can limit your flexibility and drive up costs over time.
What not to store in the cloud:
The cloud is great for convenience, but not everything belongs there. Keep these 5 things out of your cloud environment.
1. Personal Information: Do not upload personal documents such as your social security, passport, and other identification cards — whether it’s yours or your clients’. If these are stolen in a breach, you or your clients may face identify theft, legal issues, and a damaged business reputation.
2. Financial Data: Bank statements, tax returns, and other financial records are too sensitive to store in the cloud. Even outside of heavily regulated industries, we advise you to store these securely offline to avoid fraud or extortion.
3. Legal documents: Contracts, affidavits, and other legal files are often confidential. If they’re leaked, the consequences can be serious including lawsuits.
4. Business Information and Intellectual Property: Business data such as trade secrets, R&D (research and development), client data, and business plans are valuable targets for cybercriminals. Additionally, if client data is compromised, it may breach data protection regulations. If a client’s data is compromised, it may breach data protection regulations that’ll cost you revenue and trust.
5. Passwords and PINs: Storing login credentials in the cloud might feel convenient, but if your account is hacked, an attacker could receive instant access to everything else. Use a secure password manager instead.
These challenges are exactly why many businesses are moving toward a hybrid setup. By keeping sensitive or high priority workloads on-premise and leveraging the cloud for flexibility and scalability, you get the best of both worlds without the downsides of relying on just one.
We can help
Rethinking your cloud strategy? Finding the right balance between cloud and on-premise doesn’t have to be complicated. We’ll help you identify what should stay local and what belongs in the cloud — all while keeping you compliant to industry standards. Contact our team to get started on building a hybrid setup that’s right for your business.
