Cloud performance issues can force workloads back on-premises and prevent some from getting to the cloud in the first place. An overwhelming majority of enterprises continue to move workloads from the cloud back to on-premises data centers, although it is a smaller percentage than before, according to IDG research. A survey found that 71% of respondents expect to move all or some of their workloads currently running in public clouds back to private IT environments over the next two years. Only 13% expect to run all their workloads in the cloud, according to the survey sponsored by Supermicro. In the past, those expecting to move workloads back from the cloud was as high as 85%, according to Natalya Yezhkova, research vice president in IDC’s enterprise infrastructure practice. Reasons for repatriating workloads from cloud to on-premises include cost, performance, security, regulatory compliance, and control over IT infrastructure, she said, with the emphasis shifting over time. For example, a couple of years ago one of the main reasons for moving from the cloud was security. Since then, cloud providers have improved it, and enterprises have become more comfortable placing sensitive resources in the cloud. Other times repatriation was prompted by unexpected cost. For example, workloads may start small and incur modest costs, but as they increase, so do the costs, which enterprises might not have planned for. That could lead to dissatisfaction and moving those workloads back on-premises, she said. Some workloads never make it to the cloud because performance isn’t good enough to support them. Companies may experiment with compute-intensive workloads like artificial intelligence and machine learning, but never fully deploy because cloud performance isn’t good enough, she said. Line of business applications, like CRM, ERP, HR, and accounting have all proven to be cloud-friendly because they are not performance-intensive. Despite the challenges, high-performance cloud services like data warehousing and AI-as-a-service can still be a fit for certain organizations, she said. An IDC estimate says that half of the spending on server and storage infrastructure in 2021 was driven by on-premises purchases, and they will grow to $77.5 billion in 2026. Related content news analysis AMD launches Instinct AI accelerator to compete with Nvidia AMD enters the AI acceleration game with broad industry support. First shipping product is the Dell PowerEdge XE9680 with AMD Instinct MI300X. By Andy Patrizio Dec 07, 2023 6 mins CPUs and Processors Generative AI Data Center news analysis Western Digital keeps HDDs relevant with major capacity boost Western Digital and rival Seagate are finding new ways to pack data onto disk platters, keeping them relevant in the age of solid-state drives (SSD). By Andy Patrizio Dec 06, 2023 4 mins Enterprise Storage Data Center news Omdia: AI boosts server spending but unit sales still plunge A rush to build AI capacity using expensive coprocessors is jacking up the prices of servers, says research firm Omdia. By Andy Patrizio Dec 04, 2023 4 mins CPUs and Processors Generative AI Data Center news AWS and Nvidia partner on Project Ceiba, a GPU-powered AI supercomputer The companies are extending their AI partnership, and one key initiative is a supercomputer that will be integrated with AWS services and used by Nvidia’s own R&D teams. By Andy Patrizio Nov 30, 2023 3 mins CPUs and Processors Generative AI Supercomputers Podcasts Videos Resources Events NEWSLETTERS Newsletter Promo Module Test Description for newsletter promo module. Please enter a valid email address Subscribe