Dirk Alshuth, Cloud Evangelist at emma, explains why selectively pulling workloads back on‑prem has become a strategic imperative for cost‑savvy, compliance‑driven multi‑cloud strategies.

The rapid rise of cloud computing has fueled widespread innovation, equipping organisations worldwide with an agile platform to scale. According to Canalys, this trend remains strong, with global cloud infrastructure investment set to increase by 19% in 2025. While this surge reflects anticipated demand, many organisations driving it are increasingly cautious. Spiralling costs are prompting a shift towards cloud repatriation, as organisations reassess their cloud strategies to balance scalability with cost efficiency.

Between 21% and 50% of business cloud spend is wasted every year, with some organisations spending over $50,000 a month in what they consider to be an unnecessary expenditure. In addition to the sheer volume of waste, modern cloud environments are under increased scrutiny to comply with stringent security standards and growing regulatory pressure. Addressing these challenges requires flexibility, but many businesses still opt for hyperscaler services, which limit flexibility through vendor lock-in. It’s no wonder IDC research found that 83% of CIOs are considering repatriation for at least some of the workload on public cloud.

Despite concerns, cloud repatriation does not signal the abandonment of cloud infrastructure but rather reflects a growing effort to maximise its value by embracing the benefits of a true multi-cloud approach. As part of this shift, repatriation should be seen as a strategic imperative, an integral part of a broader cloud strategy rather than a step backwards. By integrating on-premises workloads with private and public cloud environments, organisations can drive long-term value and see a return on investment.  

Matching the workload to the environment

An optimised cloud environment can be a springboard for innovation, but concerns over vendor lock-in, data security and regulatory pressures have prompted a widespread reassessment of how organisations utilise the cloud.

Heavily regulated industries such as financial services and healthcare, must adhere to stringent data privacy laws due to the vast amounts of sensitive information hosted on their servers. The European Union’s Digital Operational Resilience Act (DORA) is the most recent example of such regulation. With its emphasis on tighter data control, many organisations view repatriation as a more reliable method to ensure compliance.

This has shifted the paradigm from a ‘cloud-first’ to a ‘cloud if’ approach, a result of the broader recognition by businesses that not every workload must be hosted in the cloud.

By strategically repatriating workloads between on-premises and the cloud and maintaining the flexibility to move them as needed, organisations can harness the benefits of both. Aligning workloads with the right environment enhances data security, sovereignty, resource efficiency and keeps costs under control.

Navigating the complexities of repatriation

While many see cloud repatriation as a silver bullet for cost optimisation and more direct control, it can also present its hurdles. Key challenges organisations face during cloud repatriation include restricted access to provider-managed applications, the absence of cloud-native services and the potentially high capital investment required to build or upgrade on-premises infrastructure.

The process of migrating workloads back on-premises usually results in the creation of a hybrid environment, or a multi-cloud environment where multiple public cloud providers are involved. Moving to these models requires specialised expertise from system administrators, network engineers and data administrators, skills that can be costly to acquire. Additionally, organisations must take on management in-house which requires a well-coordinated strategy to handle the complexity of modern IT infrastructure.

One of the key benefits of public cloud providers is its extensive range of managed services and automation tools, which reduce the burden on IT teams. When repatriating workloads, organisations must either replace these functions or establish in-house solutions. While often seen as a cost-saving measure, repatriation comes with significant expenses and time-consuming measures that are not guaranteed to be superior to cloud-native offerings.

To avoid this worst-case scenario, organisations must strike a balance between the greater control associated with on-premises environments, with the flexibility and advanced capabilities of cloud-native applications. To navigate repatriation successfully, the right skills, meticulous planning and access to the required resources are essential.

Addressing financial implications

Workload repatriation presents several data challenges, one being the associated high costs of data egress. While moving workloads between the cloud and on-premises infrastructure is essential, consistently moving data may result in extra charges, as public cloud providers often impose fees for moving data out of their networks.

This is important to consider, largely because mass repatriation can result in fees snowballing out of control quickly, with charges being based on the amount of data, distance travelled and time, adding several more cost elements to consider. A Global Market Intelligence survey suggests 34% of enterprises reported that egress fees have influenced their cloud strategies, leading them to either repatriate data to on-premises systems or switch to providers that do not charge for egress.

Financial implications are the root of the current cloud challenges for businesses. Ensuring that repatriation is viable requires strategic decisions to streamline and standardise data movement. When executed effectively, organisations can seamlessly move data between their infrastructure, simplifying the repatriation process. Additionally, automation, multi-cloud networking and direct inter-cloud connectivity provide organisations with greater direct control over their infrastructure, helping lower egress costs and optimise data transfers.

Effective repatriation supports strategic business goals

Skyrocketing costs, operational complexities and evolving regulations have complicated the process of designing a successful cloud strategy. Complete cloud repatriation is not the answer, selective workload repatriation is emerging as a more viable approach to enhance cloud value. However, workload repatriation must be seen as one element of a broader, overarching strategy.

By adopting a ‘true’ multi-cloud strategy that integrates on-premises environments, organisations can optimise costs, provide stronger resilience and drive innovation at scale. The ability to strategically distribute workloads based on where they are most effective is the foundation of a flexible cloud strategy. This flexibility offers greater control, ensures compliance, streamlines operations and aligns cloud strategies with overall business goals.