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Why 21% of IT Workloads Are Moving from Cloud Back to On-Prem

BARM

For years, businesses have embraced cloud-first strategies, chasing scalability and flexibility. But against all of the odds the tide is turning. Recent studies reveal that 21% of workloads are moving back on-premises, a trend known as the Cloud Reversal. Why is this happening, and what does it mean for you?

Why Are Workloads Returning On-Prem? 

 

Cost Predictability

Cloud costs can spiral with variable pricing and data egress fees. For stable workloads, on-prem infrastructure offers predictable expenses and better ROI. 

Performance and Latency

Mission-critical applicationssuch as financial systems or real-time analyticsdemand ultra-low latency. On-prem solutions deliver the speed and control the cloud can’t always guarantee.

Compliance & Data Sovereignty

Regulations around the world around data privacy are tightening. Industries like healthcare and finance need strict control over their data location. On-prem ensures compliance without compromise.

Security & Control

Shared responsibility in the cloud can create gaps. On-prem environments give enterprises full control over security protocols and access management. 

Hybrid Is the Future 

To be clear, this isn’t about abandoning the cloud, it’s about balance. Enterprises are adopting hybrid strategies, combining cloud agility with on-prem resilience. Critical workloads are returning to Data Centres, while elastic applications stay in the cloud. 

What Should You be Doing? 

Evaluate your workloads based on cost predictabilitycompliance, and performance needs. Modern on-prem solutions, like hyperconverged infrastructure and automated management, deliver cloud-like efficiency without losing control. 

To be Very Clear, the cloud isn’t disappearing, but its role is evolving. For many enterprises, moving workloads back on-prem is a strategic step towards control, compliance, and sustainability. 

 

This BARMDC thought leadership piece explains why 21% of workloads are moving back on-premises as enterprises seek cost predictability, performance, compliance, and security, driving a shift toward hybrid IT strategies. It’s designed to guide decision-makers navigating today’s challenges of effectively balancing their IT workloads between Cloud and current Data Centres. (www.barmdc.com) 

At BARM DC, we specialise in designing, optimising, and migrating Data Centre environments that deliver maximum efficiency and resilience. From energy-conscious fit-outs to advanced cooling strategies and performance tuning, our team ensures your infrastructure is ready for the future, reducing costs, improving sustainability, and supporting business growth. Whether you’re planning a new build, upgrading existing systems, or you need to review your current environment, we provide end-to-end expertise to help you achieve your goals with confidence. 

Talk to our experts today and future-proof your IT strategy.