Why Big Enterprises Are Leaving Cloud For Other Tools

by CXOtoday News Desk    May 16, 2018

cloud confusion

Technology is advancing at a rapid pace, making it easier than ever for large enterprises to leave the public cloud in favor of other tools. While the benefits that come with cloud computing are vast, and while the cloud can be a reliable and affordable place to store data, security and other issues cause concern. So many enterprises are leaving the cloud that there’s actually a term for the exodus: It’s been nicknamed “cloud repatriation.”

Security Risks

Sophisticated cyberattacks have placed a stronger focus on security. While there’s no doubt that cloud service providers emphasize security, the public cloud is an external service with exploitable loopholes that may place sensitive data at risk. Some of the most prominent cloud-specific security concerns include data breaches, hijacked accounts, malware injection and denial of service attacks. Data loss is linked to security as well, although it can occur via natural disasters and man-made catastrophes. When enterprises hybridize their data or take their business off the cloud completely, they are able to assume total control over security and monitoring, mitigating risks and making it much more difficult for intruders to access sensitive content.

Limited, Overly Complex Function

Small to medium-sized companies are often completely satisfied with the functions of cloud-based hardware and software, but many large enterprises want and need greater control over everything from PO requests to news and information.  The Sapho Employee Experience Portal is a great example of one solution for managing business-critical data and applications outside the cloud stack. One-click workflows, instant access to consolidated data from multiple systems, and real-time insights ease restrictions, speed transactions, and keep employees actively engaged.

Hybrid Infrastructures and In-House Data Centers Offer Greater Control and Flexibility

While hybrid infrastructure designs and in-house data centers pose unique challenges, both offer greater control and flexibility once implemented. Made-to-order apps and micro apps are two examples of proprietary solutions that make customized infrastructure so appealing to large enterprises. Additional benefits include greater employee productivity, enhanced speed, and greater reliability. With on-site solutions, data is never locked away in the event of a major internet outage, and it is easier to monitor networks for performance.  

The Cloud Costs Big Enterprises More

Dropbox’s US services were recently migrated away from the cloud where they were born, with the company citing better performance and lower costs as two driving factors in their decision. While entrepreneurs and small businesses can save money with cloud-based solutions, large enterprises such as Tapjoy often find that hybrid IT and on-site data centers are more affordable. On average, the price of public cloud services comes to about four times that of maintaining an on-site data center.  While there is a common misconception that cloud services cost less, new, scalable solutions are far more affordable for large corporations – particularly when potential costs associated with massive security breaches are taken into consideration.

With the constant implementation of new technology with its own advantages and disadvantages, the business landscape is always changing. It’s up to each company to determine how and where to store sensitive data.