“You’re crazy if you don’t start in the cloud; you’re crazy if you stay on it,” Andresssen Horowitz has said, talking about company use of public cloud computing. So observers have talked for some time about cloud repatriation, the shift of workloads from public cloud back to private cloud.
Workload migration back to private cloud should not really come as a surprise. In virtually all other areas of enterprise information technology, total cost of ownership changes as volume grows. When any workload is light, buying a service almost always costs less than when workloads are heavy.
That is why hosted voice services offer value to smaller businesses and entities: the cost of renting lines generally provides higher value and lower cost than owning a business phone system. But in high volumes, the cost of renting lines will exceed the cost of owning a phone system.
The same trade off arguably exists for virtually every other IT product. The economics favor renting at low volume and owning at high volume. So we see the paradox: public cloud computing spending seems to climb every year, but enterprises also are moving some workloads back to their own private clouds.
source: Verified Market Research
That is why forecasts for hybrid computing also are predicted to increase.
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