HCLTech Report: Organisational Cloud Migration: Implications of 24% Planning to Leave

HCLTech Report: Organisational Cloud Migration: Implications of 24% Planning to Leave

According to a research by HCLTech, during the next three years, almost 24% of the firms said they want to transfer some of their data from the cloud to on-premise data centres.

The process of returning applications and workloads from the cloud to a conventional IT estate is known as “repatriation,” and many businesses expect to do so for a percentage of their apps and workloads, according to the study “Cloud Evolution: Make Innovation a Habit.”

The benefits of modernisation, which will fully take advantage of the security, agility, and resilience of the cloud, outweigh those of moving a task to a new site. According to Kail, companies must take into account “the return on investment of the agility and elasticity that cloud gives you.” According to the research, switching workloads back to an on-premises environment might hurt the company’s operations in the short run.

The Financial Times’ research and thought leadership arm, FT Longitude, was hired by HCLTech to carry out this study in March 2023. According to the research, “We spoke to 500 senior executives, including senior directors, directors, heads of department, members of the C-suite and board, senior vice presidents, and vice presidents.”

Infosys recently published another analysis in which it was discovered that “only 47% of current cloud commitments are utilised and over $300 billion in corporate cloud commitments remain untapped.”

A recent report published by HCL Technologies has revealed a surprising twist in the ongoing cloud computing narrative. According to the study, approximately 24% of organizations are considering moving away from the cloud and reverting back to on-premise solutions or exploring other alternatives. This marks a significant departure from the trend over the last decade, which has seen widespread adoption of cloud computing services by enterprises worldwide.

The intent of this article is to delve into the findings of the HCLTech report, analyze the reasons behind this shift, and discuss the implications for both companies and the cloud industry.

Key Findings of the Report

• 24% of surveyed organizations are contemplating leaving the cloud.
• Security concerns are the most commonly cited reason, followed by cost issues.
• Mid-sized businesses seem more inclined to move away than larger enterprises.

One of the main factors cited by companies contemplating a move away from the cloud is the security of their data. Even though cloud providers invest substantially in security measures, the shared responsibility model of cloud security means organizations must also take steps to protect their data. Many organizations find this challenging, leading to potential vulnerabilities.

The increased frequency and sophistication of cyber-attacks in recent years have also intensified security worries, making on-premises solutions seem like a safer bet for some enterprises.

Another significant reason for contemplating a move away from the cloud is cost. Initially, cloud computing was touted as a cost-effective alternative to on-premises infrastructure. However, as organizations scale their operations, they often find that cloud costs can escalate rapidly, especially without proper governance and cost management strategies. Hidden costs, data egress fees, and the intricacies of cloud billing can turn what was once a cost-saving initiative into a financial burden.

Interestingly, the report indicates that mid-sized businesses are more likely than larger enterprises to consider moving away from the cloud. One potential explanation could be that large enterprises have more resources to invest in cloud management tools and specialized personnel, making it easier for them to optimize costs and manage security.

For cloud service providers, the report serves as a wake-up call to address growing concerns related to security and cost. Providers will need to focus more on transparency, cost optimization tools, and bolstering their security features if they want to retain their clientele.

The shift away from the cloud could also be an opportunity for vendors offering on-premise solutions or hybrid cloud models, which combine on-premises infrastructure with cloud services. These alternatives could provide the benefits of cloud computing without some of its perceived downsides.

As organizations reconsider their cloud strategies, policymakers may also have to review regulations related to data storage and cybersecurity to facilitate these shifts. Current laws often favor cloud storage as a way to safeguard against data loss due to natural disasters or other catastrophic events.

The HCLTech report suggests a pivotal moment in the landscape of enterprise computing. While cloud computing is unlikely to disappear, its role may evolve, with more organizations considering hybrid or on-premises options. Both enterprises and cloud providers must pay close attention to this emerging trend to make informed decisions for their future.