Why Are Mid Sized Companies Opting Out of the Public Cloud?

There is an ongoing reverse in Public Cloud usage, and only a few reports exist.

its demand increased exponentially over the years. However, their most notable consumers seem to be leaving almost as soon as they initiate an expansive growth plan.

According to an article published on the Forbes website, these migrations from the public cloud back to the on-premises setups are happening at an “aggressive rate.”

Why are companies opting out of the public cloud?

Iain Morris’ take on how the public cloud could be a rip-off might be a little closer to the truth.

Several factors contribute to the sudden migration from the public cloud to on-premises IT systems, but here’s an exhaustive highlight of the most critical ones.

The public cloud oligarchs Vs. Mid-sized companies

The internet is saturated with Public cloud providers. Ironically, most of these cloud providers combined owned only 34% of the cloud market share in the first quarter of 2022.

According to a synergy group analysis, only three mega-companies share 66 percent of the cloud infrastructure service market.

Google holds 11%, Microsoft has a staggering 21%, and Amazon peaks at 34%. Note that the growth in the cloud market shares dominated by these three has remained steady since 2017.

If you need clarification on how that centralized ownership poses a problem, consider the fees propelled by the stats. While there is nothing wrong with mega-corporations making profits, one-sided dependency bound to emanate issues.

One prominent issue is the steady increase in the charges by tech giants. These charges grow in proportion to the workload a company manages.

However, most mid-sized companies’ workload is prone to fluctuations. In other words, if a projected workload turns out to be lower than expected, a considerable proportion of the company’s cloud resources will go to waste.

Even with an ever-growing workload, most medium-sized companies can’t afford to service the bills proposed by the top cloud providers.

Ultimately, the cost it takes to run a mid-sized company’s cloud expenditures could help build and maintain a decent and functional on-premises IT structure.

Do you think the current decline in public cloud usage will continue for a long time?

Remember, the public cloud isn’t the problem. Cloud technology is still undoubtedly the internet’s backbone, and there are cloud providers with a more objective user-oriented approach.

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