AWS claims customers are packing bags and heading back on-prem
AWS acknowledges competition from on-premises IT, noting a rise in "cloud repatriation" due to costs and control. The CMA is investigating the cloud services market for anti-competitive practices.
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Amazon Web Services (AWS) has acknowledged facing competition from on-premises IT infrastructure, a shift from its previous stance that all workloads would migrate to the cloud. In a report to the UK's Competition and Markets Authority (CMA), AWS highlighted instances of customers returning to on-premises solutions, citing reasons such as financial reallocation, enhanced control over resources, and security. The trend of "cloud repatriation" is reportedly growing, with companies like 37Signals moving back to on-premises after incurring high cloud costs. AWS noted that 29% of UK organizations switching from cloud providers opted for on-premises services, although this figure encompasses all cloud providers. Analysts suggest that while cloud repatriation is increasing, it remains a small percentage of overall cloud usage, with many organizations still favoring public cloud solutions. AWS also defended its practices, including Committed Spend Agreements, which offer discounts for pre-agreed usage levels, and criticized competitors like Microsoft for their cloud licensing restrictions. The CMA is currently investigating the cloud services market, with a provisional report expected soon.
- AWS admits competition from on-premises IT infrastructure.
- Customers are increasingly moving back to on-premises solutions due to cost and control.
- Cloud repatriation is on the rise, but remains a small percentage of overall cloud usage.
- AWS defends its pricing practices amid scrutiny from regulators.
- The CMA is investigating the cloud services market for potential anti-competitive practices.
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3 commentsIt's interesting that the people who bought in to the marketing believe that you no longer need systems administrators - now you just need someone who intimately knows AWS and their billing shenanigans, and who will babysit used resources to avoid incurring huge bills.
Those marketing fans also say that the cloud is necessary for scaling up, as though they could never imagine running services on owned servers in addition to maintaining services in the cloud that can be turned on and turned up when needed. When people are that blinded by marketing fluff, you know that their cloud expenditure is going to be much higher than it needs to be.
I've been helping people move from the cloud to servers they already own for years. The cloud has its place, but anyone who thinks everything belongs there shouldn't be trusted with tech or with spending.
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Some companies are moving away from cloud computing due to cost and security concerns, opting for shared data centers instead. Despite this trend, cloud computing remains significant for global presence and innovation.
Are rainy days ahead for cloud computing?
Some companies are moving away from cloud computing due to cost concerns. Cloud repatriation trend emerges citing security, costs, and performance issues. Debate continues on cloud's suitability, despite its industry significance.
Are rainy days ahead for cloud computing?
Some companies are moving away from cloud computing due to cost and other concerns. 37signals saved $1m by hosting data in a shared center. Businesses are reevaluating cloud strategies for cost-effective solutions.
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AWS is deprecating several lesser-used services under new leadership, focusing on profitability and core offerings. This shift raises concerns about the longevity of new services and customer uncertainty.
Admins wonder if the cloud was such a good idea after all
Many organizations find cloud services from major providers have not met cost-saving expectations, with significant price increases attributed to rising electricity and labor costs, prompting calls for better ROI assessments.