Why Are Companies Leaving the Cloud? Exploring the Trend and Real Reasons Behind It
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- เผยแพร่เมื่อ 27 มิ.ย. 2024
- Are businesses really abandoning the cloud, or is there more to the story? In this video, we analyze current adoption trends, discuss business needs, and examine case studies from major players like Basecamp and InfoWorld. We dive into the pros and cons of cloud adoption, the importance of understanding business needs, and the role of training and experience in making informed decisions. Don't forget to like, subscribe, and share your thoughts in the comments!
⬇️Below are the topics we are going to discuss in this video:
00:00 - Introduction
00:28 - Why are companies leaving the Cloud?
01:51 - Revenue Stats of Cloud Providers
03:02 - Case Studies based on Articles
06:06 - Pros & Cons of Cloud Computing
07:02 - Another Counterpoint
08:07 - Conclusion
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Expecting the cloud to be cheaper is a prime example of “expectations not met”
Companies are leaving the cloud due to high costs, performance issues, data security concerns, need for control and customization, vendor lock-in, skill gaps, legacy system integration challenges, economic factors, and technical limitations.
Great insights. Agree with you most point.
I disagree with data security. Cloud in a better place security wise. I have been in the industry for 25 years and cyber security is my primary role . The in-house data centre is prone to data leakage if it is exposed to the external world. If security controls are in the right place the cloud is most secure based on experience. Since the economy is slowly business might slow down cloud adoption but the current trend will be priviel for a year or so then cloud will dominate again ..
What are they moving to?
@@KENRBLXGAMINGon premises
Every one of the points was 100% to be expected even 10y ago but they switched to the cloud anyway.
The only difference is that some tools have become more mature which makes it easier to set up your own infrastructure.
The remaining question is, why did competition not fix the price issue?
Perhaps if vendor lock-in really makes customers leave, the cloud will finally become competitive.
For an Engineer's point ot view..i guess Hardening and staying close to Linux will be the key to survival in any Arena of Computing..be In on-prem, Hybrid or Cloud.
As a data eng. I can say it is easy to spend a lot on cloud computing. And it is important to have the right skills otherwise you will spend too much.
I saved potentially a lot for my company and it is because I have experience about optimizing things not adding additional resources.
Despite being a software developer for about 20 years, I'm finding cloud UI to be very challenging. Even with tutorials, documentation, and help from AI bots, tasks that should be simple lead to endless detours and rabbit holes. Do you have any advice for gaining cloud skills other than just "keep doing it" which is what I've been trying for several months now? In the past, I found IIS, Windows server, and all other technologies easy to learn when they first came out. Not the cloud. The user interfaces change rapidly, explanations are poorly provided - for example, I spent a long time trying to set up Entra ID for outside customers when I should've been using B2C (Entra External ID). Then I found out that many of the user roles and capabilities on Entra ID don't exist for B2C and I'm trying to figure out how to get Azure CLI, the primary tenant account, the B2C account, the SQL server and the database, .NET entity framework core, and several other things to work together - which wasn't so difficult before the cloud, but is now massively frustrating. You mentioned skills. Do you have any advice on mastering the skills more quickly? Is there, for example, a different mindset, a better set of resources, a different order or sequence of studying, or something else? Any suggestions or insights you might offer will be appreciated. Thanks in advance.
Awesome. Been trying to break into the data analyst space but the market is tough. I'm already in IT, just want to pivot my career to something different.
You just made a connection for me as to why you guys really do get paid alot. It's because you save money from what is otherwise other companies making things unnecessarily complicated and expensive on purpose to drag inexperienced clients through as long as possible to collect the revenue to service debts and accounts of their own. Your skills prevents that from happening in the first place and with the savings, they go to you.
If you're a one man show, the cloud takes care of many of your IT needs. Simply put, hardware purchasing and silly things like power supplies going bad, bad hard drives, etc are no longer your issue to monitor or take care of. As a one man show, you can focus on developing your app / solution and work on sales.
Though that being said, your solution must keep in mind how much or how little you want to take. For example, do I spin up a MariaDB database or do I use a prefab virtual machine from a cloud service provider. A prefab offers scale and additional performance features but less fine tooth control of other software on the machine that might be useful for database administration. Some of the prefab stuff might force the one man show into vendor lock in.
I myself have moved from colocation of physical machined to a bare metal in the cloud service provider. At slightly more money I get all the hardware and bandwidth like before, but this time I no longer have to deal with hardware. If the hardware gets old or out dated, it's no longer my issue. More over all the other minor annoyances are now up to the cloud service provider to deal with.
Very simple.
I work for a major OEM and have these very conversations with my enterprise clients.
1. Cloud at the beginning was the silver bullet removing your CAPEX expenditure supposedly with an OPEX model and cost every month.
2. The Surprise comes when you get your monthly bills and you are charged heavily for data egress charges. Data is today a company's most valuable asset, and it's movement and protection is paramount to a company being successful which leads to
3. Security and compliance, companies have to be very careful with where they put their sensitive workloads and data.
So they repatriate after experimenting.
Again there are pros and cons to everything. Sometimes a hybrid mix is best, it all depends on the budget and business.
Money makes the world go round
it is much expensive in the long run. Our company is already planning to move back to On Premise Set Up in the next 5 years. Cloud bubble will burst
It all depends on the project or product size and the location. Sysadmin salary in Switzerland is 20 higher than in Kazakhstan, so it is optimal to use cloud in Switzerland to save $$$, but may not be so in Kazakhstan where you can hire an army of sysadmins and engineers for as little as $.
@@igorpupkinable our company projected expense ballooned to $12 Million dollars for the next 5 years from a previous budget of $8 Million per year. Now we are offshoring some roles in Asia, India, Eastern Europe.
You piece on Pros & Cons @06:06 is accurate. What you say about cost vs value, is a key. If a business that migrates to the cloud, is unable to extract the potential value from the move, it eventually results in the conclusion that it is only costlier. Not all businesses succeed in extracting value from an innovation for a variety of reasons.
The problem here is you have not onboarded the right architect in your company. He should have well organised design before you onbaord anything before security approval.. if no designs at right place will come up having such titles - people leaving cloud !! Very simple
On premis in 2024 is 2x cheaper than cloud and hardware providers are now providing maintenance for free along with it.
Now it's saas model. Build on bare metal, charge for the service from unsuspecting prey😢😂 the API wars era
Loud is besset for big companies, with big data, not for most struggling struggling small businesses.
I think, cloud is good for personal projects (small scale but scalable projects) but not for scaled projects.
My observation is that, it's actually opposite of what they advertise.
Get your own infrastructure as soon as you can.
Exactly, I see cloud more as a prototyping platform. Production better be on-prem.
in cloud : note that your data is not with you
being used for insider trade info
Underrated comment.
Its just like taking a home loan..paying cloud bill is just like paying EMI..But ultimately you ll end up paying double the on- prem cost
At least you have a place to live. However, unlike home loans, getting initial investment for on-prem is a road blocker for very many companies.
Companies are forcing users to move to cloud applications. That's what I noticed with Microsoft since Windows 10, and many other companies. Converting offline desktop software into online apps. It's nothing but an attempt to milk their customer database through paid subscriptions and getting access to people's computers. You don't need cloud apps for say Architectural CAD. It's just a waste of money - Internet data bills + subscriptions. Cloud apps are only necessary for updating your project with real time information that changes frequently, for example cost data. Otherwise you don't need to be online all the time.
Thank you for sharing your thoughts! While it's true that many companies are moving towards cloud-based applications, there are both pros and cons to consider. Cloud apps can offer real-time collaboration and updates, which can be beneficial in many scenarios. However, it's also important to evaluate whether the cloud is the best solution for specific tasks, like Architectural CAD. Ultimately, the decision should be based on the specific needs and workflows of each user.
Cloud is not for everyone. Its for business who provide external customers services. If the majority of their product is for in house operations need for example pharmaceutical companies then cloud adoption is not right choice as they need to pay high wage for cloud skill. Business has to analyse whwther cloud really value money wise . They should not rush since everyone saying cloud cloud.
"High wage for cloud skill" - that's not why the cloud is expensive. Also "cloud skill" is not more expensive than on premise skill.
Best is Hybrid. A Mix of both On-Prem and Could.
yes. It all depends on cost optimization in the lont term
With cloud native tooling becoming more accessible and expanded workforce experience with cloud native tools I think on-prem and edge cloud will continue to grow.
Thanks for the info!
I would never put my business in cloud computing, especially AWS? Look what happened to Parlor. "Cloud" is just someone else's "on-prem." with an web interface. AWS, Azure, Google, or IBM cannot scale for very large organizations, so that means these orgs need to go to larger co-lo facilities (hint: IBM).
cannot scale for very large organizations ? Thats the only purpose of the cloud , scaliblity !
@@MrDevilwing Are "clouds" unlimited? Their are limits to their scalability. Remember "cloud" is just marketing terminology. In the 90's they were called ASP's, then CO-Lo, then fully hosted, now it's "cloud. " It's all the same thing -- someone else's hardware.
"Cloud" is just someone else's "on-prem." with an web interface." - very profound statement.
Netflix runs on AWS
@@karankawwhat is your „profound“ statement mofo?
Cost is factor but not only factor ...if you consider other factors..the answer is clear...
We have a few people focussed on reducing cloud costs. Until now its working for us. They mostly limit all the wastage. We just have a 5-6 wastage in cloud. We are quite efficient in cloud usage and lean in our business which increases our productivity
Fully dependent on the the know how if your IT team if you have one. Some can run very effectively on prem. And like you said it's based on work load I think hybrid is the best solution here.
The big companies just make a general order of 'cloud first', then 'cloud value', and then silently blocks/delays new cloud installations...mindless CIOs
On premises is much much better, Cloud is costly, runs on code based infrastructure hence has several instabilities, new security vulnerabilities everyday
Cloud only makes sense for startups or when the app has a small customer base
Or for Priority 1 app DR replication
@@Slay_Nation it's like depending on neighbour for your child delivery. Sorry I take care of my family myself. No surrogacy for me
@@samiullahk7223 Your analogy doesn't make sense to me. If your primary site is down, assuming you don't have any other site available, how are you going to have your apps running? It doesn't matter if you can take care of it yourself, the fact of the matter is that you need some place to store your tier 1 apps. Not every company have multiple locations where they can easily failover to another site. This is where cloud comes into place.
Hi!. I believe that the most used today and tomorrow is well is hybrid cloud, in this scenario the critical data is into the on premise still
I was so excited about my company moving all our servers into AWS.......after couple years, I really hate working in AWS.🤣
The way the cost is computed. Comparison shopping is confusing. A cap is needed in some places.
company always make right
Wise decision
For established companies that can afford to have on-premise probably should. If you're a relatively small to mid size company the cloud will more than likely be your go to until you reach a height where you can employ individuals that understand and like to take on the task of migrating from cloud to on-premise and support scalability and reliability.
In india a company name OLA just built their on cloud services for their company and migrated away from mainstream cloud providers.
if cloud really expensive then on prem DC, what if we think this way. In DC according to my organization we have separate team for each domain for example storage , unix , windows , NOC and some others. We have to think about the cost of paying the employess , DC building , Electricity consumption and the list go on. If compared to that we can say that cloud in all in one solution and the price we are paying for that is relatively less. What do you guys thinking about this. Lets discuss !
If you allowed yourself to get vendor locked-in, then you are fucked. If not and you are big enough, now is probably a good time to negotiate. Big enough companies can justify utilizing multiple cloud vendors simultaneously and shift the load according to prices and negotiate constantly.
@@gzoechi Google Cloud and AWS allow you to move out of their services for free. I do not know about Azure. So vendor lock-in was an issue before but not now.
Let’s see, I write 10 lines of script to create a load balancer in a cloud infrastructure. How many emails, requests, meetings, budgets do I need to go through to get one in a DC?
@@drchamp1902and maintain a mail server... horrible
If you examine the OS license on AWS, you'll find that for Microsoft Windows, a dedicated host or instance is required, or you can purchase a Microsoft License Mobility through Software Assurance. Microsoft Monopoly :)
Yes that’s what I also think
Cloud is best used for open source software
Based on my experience cloud comes with following issues -
1. performance.
2.Also none of the cx gets rca of any issue, cloud tac just gives some reports and push the cx to reach other tac.
3.this one specific to azure, your networking sucks.
Completely agree with 3 point. Azure is most boring cloud vendor always greedy for money. I don’t how even in second list of competitors as I am thinking Microsoft forces organisation to use their cloud just like they did for other products
Too much dependency is bad for any organisation. Taking charge of your own data makes a lot of sense in the long run. Triopoly in cloud services is the prime reason for a skewed and unbalanced talent available in the job markets across the world.
Things in cloud are becoming unnecessarily complex just to increase cloud provider revenue.
Thank you for sharing your thoughts!
Hello everybody, I came from on premises networking with physical Cisco Routers, Switches, firewalls, etc
Worldwide wide are networks like AT&T , Orange, Verizon etc migrated to SD-WAN
What is better to study for certification, SD-WAN ? or Public clouds like AWS, Azure or GPC ?
I was starting to study to become AWS solution architect, it really worth it ?
It is really up to where you want to develop. I had the same question while working on a consulting firm. Cloud will exist for elastic solutions, however with AI, information is like gold and many companies do keep the on prems logic. Top dogs run their own cloud system. Aws,Azure cloud solutions are more into small to medium business that can not run onprem hardware or it is more complex to maintain to them.its same as renting an office, instead of owning it.one day you are there, the next who knows.
As a MSFT shareholder I hope Azure growth continues. I am betting it will since skilled IT guys may be hard to find and to hire? if so, it bodes well for MSFT share prices. Time will tell.
Still need skilled IT guys to administer Azure
How they deal with scalability issues ?
by making their IT suffer
Cost
on-premise
Naah, I have had to manage on prem servers, not doing it again. For us, the flexibility and time saved using cloud justifies the cost.
Thank you for this comment. I share the same point of view.
@@augustinegideon8059 more pain= more money 🤑 on setting up similar nightmares elsewhere 😂
Your statement will look different when recession starts.
Most companies I worked at used cloud like a data center with a bunch of vms, not as infrastructure controlled via code. Most devs don’t enjoy dealing with infrastructure and most infrastructure guys are too old school lazy folks who don’t care about learning something like terraform. So for the cloud to make sense, you need the skilled cloud centric developers and architects, CI/CD and everything scripted and deployed/destroyed via pipelines
Thanks for sharing your experience! 🌐 It's true that many companies still use cloud services in a more traditional way, but the shift towards infrastructure as code (IaC) is growing. Tools like Terraform, along with skilled cloud-centric developers and architects, are indeed key to unlocking the full potential of cloud computing. CI/CD pipelines and automated deployments can significantly improve efficiency and scalability. For those interested, we have great resources on Terraform and CI/CD to help bridge that gap. Keep pushing for innovation! 💪🚀 #CloudComputing #DevOps #InfrastructureAsCode
@@KodeKloud nice AI reply
Hybrid infra is the future
No one is leaving the cloud! Stop it.
Hybrid is the future
I see a lot of idiot comments here. People believing cloud is the way to go, just because they spent on cloud certifications to sell their employee skills. Companies go for the bottom line. Saving money and data security. Cloud is like renting a house where the landlord can come in and see how and what are you doing, telling you his premises are safe "trust me bro". That may work for some business areas, but now in the age of AI & information data security is Gold.
You must be one of these folks that ran a DC in the late 90s 😂. Learn some cloud architecture principles and infrastructure as code before you say crap like this will you
@@drchamp1902 Let me guess you are one of those know it all that get offended if someone insults your certifications. I am not here to flash certifications or coding skills. from which I am sure you have lack of. "Learn some cloud Architecture". Wink Wink I know them all you smart ass. you are welcome,
Or May be it’s expensive cause your application code is badly written w.r.t memory management etc.
I think Not having FinOps in organization is causing this cost
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Shouldn't AI make it easier to manage your own infrastructure?
Never trust sales pitches 😂😅
Nothing new. The cost of cloud can get outrageous.
Nobody is leaving the cloud, au contraire!
I disagree , high costs (because you dont know how to modernize or your arch. is bad and not native) , data security? how so? Vendor lock-in - no matter where or what you do you will have a certain amount of lock-in, your hardware IS vendor lock in etc etc . I just dont see where any of that is true across the board. Finally 37 is not a great example, it doesnt tell you what their arch. was , if it was just containers then they may have a point, if they are not using cloud native tech. then maybe. Of course , 37 doesnt take into account the fact that you are now locked at a certain hardware level which makes over provisioning acute and waste money.
Stupid question. Why top companies like bank of America or Exxonmobil have most of their infrastructure on prem? 😂😅
Historical issue.
@@Kc-nn8mnnope all enterprises have been, now there are tools like ansible which automate server build and scale and deploy, so cloud sounded adios amigos to sys admins by tonnes, devops is doing it without cloud. End of the day efficiency and some some laid back time for the lone survivor or say builder of the infrastructure
Wrong. They have "their private cloud"
@@warclan5429That is what On Prem is. Their own Data Center.
Propaganda
cloud is the best
100 VMs = 100$
90 VMs = 110$
80 VMs = 120$
Less the number of servers, higher is the cost
Illogical then I will have 1000 servers for 10$? How old are u btw?