Cléber Alexandre Agazzi is a Sr IT Executive at Sicredi with over 15 years of experience in IT leadership. He specializes in driving transformative initiatives that foster organizational growth and innovation. As the Head of Infrastructure & IT Operations, he develops executive-level strategies, optimizes digital infrastructures, and promotes a culture of innovation through strategic vision and leadership. By managing infrastructure as a product through platform engineering, he ensures agile and scalable solutions that align technology with business operations for enhanced efficiency and sustainable growth.
Cloud migration has reshaped how companies operate, offering agility, scalability, and cost savings. However, as cloud strategies mature, many CIOs are reassessing whether it is the optimal solution for all workloads. Some applications thrive in cloud environments, while others present significant challenges, prompting organizations to reconsider their approach. Historically, data centers were seen as inefficient, but cloud services revolutionized business operations by providing speed and flexibility. Companies rushed to the cloud, attracted by promises of simplicity and efficiency.
Over time, it became evident that not all workloads benefit from the cloud. Repatriation movements have gained momentum, as illustrated by the 2024 Barclays CIO survey shared by Michael Dell, where 83 percent of companies plan to bring workloads back to private clouds. This shift is driven by factors such as inefficient cloud transitions, inaccurate cost control, and unpredictable data growth, which contribute to rising expenses. Public cases like Dropbox in 2016 and Bank of America highlight how maintaining private infrastructure can sometimes be more cost-effective in the long run.
The initial belief that cloud computing was the ultimate solution has evolved into a more balanced perspective, acknowledging the hidden costs and limitations of a cloud-only model. Simultaneously, data centers have advanced, with automation tools and consumption-based contracts making private cloud solutions more competitive. Even traditionally cloud-friendly workloads, such as containerized applications, can now be more cost-effective when run on private infrastructure.
The shift towards a hybrid strategy balances on-premises capabilities with cloud-based services. Cost is just one consideration in determining workload placement. Technologies like Artificial Intelligence (AI) and Analytics often benefit from cloud-based services, offering ready-made solutions that save time and investment. However, keeping consolidated applications with predictable growth in-house ensures operational efficiency while leveraging the cloud for scalable and innovative services.
Managing data centers requires attention to availability, resilience, scalability, and risk. Cloud solutions bundle these aspects, making them attractive to organizations with evolving infrastructures. Companies with mature setups find transitioning to hybrid models or repatriating workloads less challenging. Conversely, those that migrated due to infrastructure limitations or were cloud-native may face a more complex journey.
Key considerations include adopting open technologies to prevent vendor lock-in and ensuring applications can function across both public and private clouds. Infrastructure and platform services are becoming standardized, with data center providers now offering competitive services. The future competitive edge will come from specialized products, such as AI, ML, Big Data, IoT, and collaboration platforms like SAP and Salesforce, regardless of the underlying cloud provider.
As cloud infrastructure dominates discussions, it is evident that not all workloads thrive in this model. The expectation that cloud computing would be the universal solution has shifted to a nuanced understanding of its limitations. Workload repatriation reflects the need for cost control and operational efficiency. A well-executed hybrid strategy enables companies to manage predictable workloads internally while leveraging the cloud for dynamic demands, ensuring a balance between efficiency, agility, and innovation. The key is not choosing between data centers and the cloud but finding the right balance to meet business needs.
