AWS claims customers are packing bags and heading back on-prem
We were tempted to use “AWS claims customers are packing bags and heading back on-prem“ as a title for this blog post. This article's title in The Register talks about the evidence AWS brings to the Competition and Markets Authority in the UK to the fact that the clients can easily switch vendors, and among the alternatives, they list the “moving back on-prem.”
What the article highlights aligns with what MetalSoft has seen as well. We see enterprise clients in both the US and EMEA looking to repatriate some workloads, primarily in the financial and government sectors. At the same time, our EMEA customers are much more active in building their next-generation on-prem data centers than our US clients. We speculate that this may be because they never actually left the on-prem in any meaningful way and thus retained both staff and facilities. In this case, inertia worked in their favor.
According to the article, AWS says in the report that: "building a data center requires significant effort, so the fact that customers are doing it highlights the level of flexibility that they have and the attractiveness of moving back to on-premises."
The percentage of clients actively moving back on-prem is low in the US: “in the single digit range,” according to the article, citing IDC, whereas, for the UK, AWS cited sources saying that “29% of all UK customers moved back on-prem”.
The ROI of moving to the cloud is now achievable on-prem as well
The ROI of moving to the cloud is now achievable on-prem as well. What you need is modern data center automation and modern practices such as SRE, intent-based automation, integrated automation, and perhaps a colocation partner.
MetalSoft and other infrastructure orchestration platforms provide off-the-shelf hyper scaler-like stacks to any company wanting to run their operations like a service provider. If you don’t want to own the data center facilities, you can rent them from a colocation provider (empty racks with power, cooling, etc.).
Alternative to high VMWare license costs
Many of the clients that moved to the cloud in the first place did so due to VMWare and Oracle license pricing, which was important. Now, with the Broadcom acquisition of VMWare, many of our clients are looking at alternatives, and as a consequence, the landscape is changing rapidly. MetalSoft has launched the MetalSoft Virtualization to provide an off-the-shelf integrated solution, but other options from RedHat and other vendors are available as well.
The time is right to reevaluate the return on investment (ROI) comparison between on-prem and the cloud. Contact us to learn more and get a customized demo tailored to your infrastructure needs.
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