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Tech Trends 2024: Inside the Cloud Exodus

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Tech Trends 2024: Inside the Cloud Exodus

The cloud exodus – while it might not warrant ‘the great’ quite yet, a recent trend of repatriation (companies backing out of the cloud in favour on-site infrastructures) has emerged. Given the widespread rate of Cloud adoption and the relatively low transition preparedness, it shouldn’t come as too much of a surprise.

Why exactly are leaders choosing to abandon their digital havens? Is cloud computing too much of a muchness? A tool is only as decent as you make it, and while the cloud certainly represents a wealth of incredible benefits, it doesn’t cut the virtual mustard for everyone.   

Here are a few reasons why companies might leave the cloud and its impact on today’s talent market.

Cost and Complexity

Underestimating the cost of a cloud transition is worryingly common, and what’s known as ‘lifting and shifting’ might be the number one culprit. This method of cloud transition refers to the process of moving an on-premise infrastructure to the cloud with little or no modification. It might seem efficient at the time, but it often leads to inefficiencies and a whole heap of wasted resources. In many cases, this method can more than triple the cost of the tech.

The alternative is a more strategic approach called cloud-native development. This involves re-architecting your infrastructure and applications to take full advantage of the cloud's capabilities. While it requires more upfront effort, cloud-native development typically offers significant benefits, including increased agility, higher performance and cost optimisation.

It's difficult to navigate the balance of this complexity when you’re operating in a talent-short market, and speaking of which…

Access to Talent (Or Lack Thereof)

The global talent crunch is taking its toll, particularly in areas like Germany, a nation that’s historically lagged behind its European counterparts when it comes to digitalisation.

Companies that can win the fight for talent can win the fight for a tech-enabled future. It’s easier said than done, especially when cloud and infrastructure talent is in high demand, commands high wages, and is difficult to identify without dedicating significant resources to. If you’re hoping to hire in this area, our Cloud and Infrastructure recruitment specialists are here to help. Meet them here:

The Hybrid Approach

While some companies are moving away from the cloud entirely, it's more likely a sign of a shift towards a more strategic mix of cloud and on-premise solutions. This hybrid approach allows businesses to unlock the full potential of both worlds:

Cost Optimisation: By strategically allocating workloads, businesses can leverage the cloud's scalability for flexible needs while keeping mission-critical applications with stricter security requirements on-premise. This targeted approach helps optimise overall IT spending.

Sensitive data can be kept securely on-premise, while the cloud's capabilities can be harnessed for collaboration and disaster recovery, creating a layered strategy that helps mitigate risk.

Security concerns, the potential for siloed data, and the heightened complexity of this approach make it a difficult bridge to cross for those without sturdy talent pipelines.

We’re seeing a cloud exodus of sorts, but it’s likely par for the course as businesses enter a new era of digitalisation.