Over the last decade, the public cloud has been the leading solution for enterprise technology thanks to its flexibility, security, and performance. However, today we are seeing a trend of reconsideration:
69% of organizations have migrated some of their applications back to on-premises environments or private clouds.
This shift is driven by:
- Cost concerns: Unexpected expenses and high subscription fees.
- Data security and regulatory requirements: Greater control over sensitive data in regulated sectors.
- Performance needs: Applications with real-time requirements perform better on dedicated infrastructure.
- Technical inefficiencies: Poorly optimized cloud migrations have resulted in higher operational costs.
Source of survey data: 2025 State of the Cloud Report by Rackspace
Related article: ZDNet: Why Some Companies Are Backing Away from the Public Cloud
The Solution: Hybrid Cloud
The hybrid model allows organizations to combine the flexibility of the public cloud with the control and reliability of on-premises systems. Companies like GM have already adopted this approach, achieving a balance between security, performance, and cost savings.
What does this mean?
Most organizations are not abandoning the public cloud altogether but are opting for a hybrid model that delivers the best of both worlds.
How is your company addressing this challenge?
Let’s talk!