Leaving the public cloud - emerging trends Cloud repatriation and unclouding?

Reasons for repatriating work processes to your own data centre

Just a few years ago, many companies could not move fast enough on the path to the cloud. Above all, those responsible expected a boost in innovation as well as cost, security and sustainability benefits compared to existing on-premise operations. In some areas, this was certainly justified, as anyone who does not want to fall behind in innovative applications, such as the development of artificial intelligence, cannot do without cloud software solutions and, depending on the business model, may even be dependent on them. One consequence of this is increasing dependencies, right up to a vendor lock-in. However, it is not only in such cases that it becomes clear that the path to the cloud is anything but a one-way street. The situation is similar in the areas of cost development and IT security, as above-average price increases in the subscription models of large public cloud providers such as Microsoft and gaps in data security and availability have repeatedly demonstrated in the recent past.

As a result, cloud strategies are now being considered in a much more differentiated way, analysed regularly and adapted to suit requirements. One of the consequences of this is that companies are increasingly retrieving at least some of their workloads from public cloud environments and integrating them into their own data centre infrastructure. Depending on how they are organised, these developments are also referred to as cloud repatriation or unclouding.

In this blog post, we take a closer look at the meaning of both terms and predict which cloud model currently has the greatest future potential in our experience.

Cloud repatriation or unclouding - what's the difference?

Cloud repatriation or unclouding? Isn't that the same thing? And if not, what's the difference? Even though the two terms are often used interchangeably, even within the IT industry, the difference is quite simple to explain:

Cloud repatriation simply refers to the repatriation of data, services or applications from a public cloud to a private cloud, usually within a company's own data centre. However, this does not change the fundamental strategic direction; even after repatriation, the company still has a cloud-based infrastructure.

The term unclouding, on the other hand, stands for a fundamental move away from the cloud and is usually associated with a complete return to on-premise operation. However, the term unclouding is also frequently used in connection with the switch to a hybrid cloud model. In these cases, however, cloud repatriation is actually always meant.

Cloud repatriation with the aim of maximising IT security

Awareness of security risks in cloud computing has increased considerably in recent years. This is demonstrated not least by the large investments made by major providers in expanding their infrastructure. If important company data flows out of the public cloud due to security gaps and is freely accessible on the internet or if access is temporarily blocked by cyber attacks, scepticism grows and the dependencies often only become apparent when considerable damage and restrictions occur.

The pressure to minimise the potential risk is growing, especially for companies in regulated industries such as the energy or healthcare sector or in public administration, which have particularly high requirements in terms of data security, data sovereignty and compliance. The repatriation of data and work processes is a logical step here, which does not necessarily have to end with complete in-house operation. In most cases, only certain content is retrieved from the cloud, for example when it comes to new product developments, patents, research results with highly sensitive data, unpublished business results or corporate strategy plans, such as planned takeovers or sales of company shares.

We are currently also seeing a cross-industry trend towards the implementation of hybrid cloud models, in which both solutions are combined as required, being favoured by more and more companies. Such a scenario also opens up the prospect of alternative forms of licensing, such as the integration of used software, which offer sustainable cost benefits of up to 70 per cent compared to the latest form of licensing.

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Cloud repatriation with the aim of sustainable cost control

For many companies, the predicted cost reductions were the main reason for switching to the cloud. However, this development can quickly turn into the opposite and even lead to cost dynamics that are difficult to control. The main reasons are usually

• a wide range of cloud services and SaaS solutions available at any time
• a constantly increasing demand for uncontrolled procurement processes  
• and sometimes high price increases, such as the example of Microsoft in spring 2023 with an average of around eleven per cent across Europe for its cloud-based subscription licences.

Once these developments become transparent, they will certainly lead IT managers to rethink their total cloud strategy. As a result, the cloud strategy adopted is being reconsidered and adapted to actual business needs, which can lead to cloud repatriation or even a complete unclouding process and a return to on-premise operation.

The following customer case of the Essen-based company Swedex shows how such a complete change of strategy can pay off in the long term, even for a medium-sized company, by integrating used software licences:

Swedex example: back to on-premise operation after 3 years in the cloud

The fact that a total cloud solution not only offers convenience, but can also entail dynamic cost development, was also recognised by the Essen-based medium-sized company Swedex, the European market leader in the field of document presentation for business customers. The consequence: after three years, the company opted out of Microsoft's cloud model.

After unclouding, Swedex opted instead for used on-premise software from PREO and was thus able to save licence costs of around 100,000 euros over a period of three years. However, it was not only the immense cost benefits that were convincing, but also the tested and audit-proof transfer of the licences as well as the quick and uncomplicated installation of the used MS Office licences and Microsoft server licences. Read the entire customer case here.

With PREO, you are choosing an experienced and reputable B2B provider

Regardless of the extent to which companies, organisations or public administrations opt for cloud repatriation, PREO offers them a large selection of used on-premise licences for current and older versions of standard software from market-leading manufacturers such as Microsoft and Adobe. Whatever the need, with PREO customers have all the advantages on their side and benefit from

• High savings on ongoing licence costs of up to 70 percent compared to the respective new version.
     
  
• 100 per cent legally compliant and audit-proof licence acquisition with maximum transparency in all processing steps, including complete documentation in the PREO licence portal ‘Easy Compliance’.
  
  
• Personal advice on all questions relating to licence transactions or the integration of used software licences in traditional network structures or hybrid cloud models.
  
  
• existing software licence management capacities for large IT infrastructure projects with thousands of workstations and cross-border locations.
  
  
• more sustainability in the IT sector by promoting an active circular economy and reducing the company's CO2 footprint. Speaking of sustainability: PREO is the only retailer of used software with a current scorecard listed by EcoVadis, the world's largest provider of sustainability ratings.
  
  
• The expertise gained from numerous reference projects that PREO has already successfully realised for well-known companies from various industries and sectors.

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