FINAL WORD
Sascha Giese, Global Tech Evangelist,
Observability, SolarWinds
But compliance doesn’ t appear to be the main driver. Licensing fees from major software vendors have crept up and so too have monthly cloud bills. As workloads scale, especially those tied to high-performance computing and AI training, cloud expenses are spiralling. Gartner predicts that this year, more than 50 % of enterprises that have moved workloads to the public cloud will seek to repatriate some of them due to unexpected cost overruns, performance issues or a combination of both.
And it’ s already happening. Across the globe and increasingly in the Middle East, organisations are bringing workloads back from the public cloud to on-premises infrastructure or colocation facilities. Not because cloud has failed but because reality has kicked in.
Why cloud costs spiral
The cloud’ s flexible, pay-as-you-go model is a double-edged sword. It allows businesses to avoid hefty upfront capital expenditures, which is a huge advantage when launching quickly or scaling rapidly. But variable pricing can also make cloud bills highly unpredictable. Add to that the rapid pace of
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