{"id":28465,"date":"2024-11-20T11:20:53","date_gmt":"2024-11-20T10:20:53","guid":{"rendered":"https:\/\/www.cloudmagazin.com\/?p=28465"},"modified":"2026-06-10T12:59:02","modified_gmt":"2026-06-10T10:59:02","slug":"cloud-cost-security-concerns-drive-partial-pullback","status":"publish","type":"post","link":"https:\/\/www.cloudmagazin.com\/en\/2024\/11\/20\/cloud-cost-security-concerns-drive-partial-pullback\/","title":{"rendered":"Costs and More Drive Partial Cloud Withdrawal"},"content":{"rendered":"<p style=\"color:#6190a9;font-size:0.9em;margin:0 0 16px;padding:0;\">2 min read<\/p>\n<p><strong>Companies aren\u2019t abandoning the cloud entirely, but many have scaled back their cloud initiatives. The main reasons, according to US market researcher IDC, are cost concerns, often disappointing performance, and inadequate security.<\/strong><\/p>\n<h2>The Key Points at a Glance<\/h2>\n<ul>\n<li>Companies are partially withdrawing from the public cloud, finding it often too expensive and slow.<\/li>\n<li>Common reasons include high costs, latency issues, security concerns, and compliance requirements.<\/li>\n<li>Over half of companies have already exceeded their 2024 cloud budgets.<\/li>\n<li>Only 8-9% plan to fully repatriate all workloads to their own data centers.<\/li>\n<li>Hybrid infrastructures combining on-premises, private, and public cloud are gaining significant traction.<\/li>\n<\/ul>\n<p>When it comes to the public cloud, the initial enthusiasm among companies has somewhat waned. Many have begun a partial pullback because they find the public cloud too costly, underperforming, insecure, and difficult to manage. According to IDC, compliance issues add to these challenges.<\/p>\n<p>However, the market research firm notes that this doesn\u2019t mean companies want to abandon the public cloud entirely. Instead, many prefer a mix of on-premises, private cloud, and public cloud solutions, as <a href=\"https:\/\/www.heise.de\/news\/IDC-Viele-Unternehmen-wollen-teils-raus-aus-der-Cloud-10001826.html\">heise online<\/a> reports.<\/p>\n<p>Only 8 to 9 percent of surveyed businesses plan to fully repatriate their workloads. This trend is particularly noticeable among large enterprises. The primary driver for the partial withdrawal from the public cloud is cost, with over half of companies already exceeding their 2024 cloud budgets.<\/p>\n<h2>AI and complexity are also driving up costs<\/h2>\n<p>Rising costs aren\u2019t just due to higher provider prices &#8211; they\u2019re also driven by the growing complexity of subscribed services, increased energy costs, and new technologies like generative AI. Yet both providers and enterprise users once promised that cloud adoption would reduce IT spending, as IDC points out. That assumption doesn\u2019t always hold, as <a href=\"https:\/\/www.heise.de\/news\/Raus-aus-der-Cloud-Der-Eigenbetrieb-rechnet-sich-mehr-als-gedacht-9990467.html\">this case study from 37signals<\/a> demonstrates. The company, known for Basecamp and HEY, saved $1 million in its first year after migrating from the public cloud to its own data center. It now expects annual savings of nearly $2 million &#8211; far exceeding its initial target of $7 million over five years. CTO David Heinemeier Hansson notes that the hardware costs for on-premises operations paid for themselves quickly.<\/p>\n<p>When it comes to cloud performance, B2B customers surveyed by IDC cite latency issues as a major pain point, particularly for certain applications. For AI workloads, for example, an on-premises infrastructure often outperforms the public cloud.<\/p>\n<h2>Security is another key factor<\/h2>\n<p>After several incidents, many companies now question data security and data protection in the public cloud. The legal certainty of Microsoft 365 in German public-sector organizations, at least, remains a contentious issue. To err on the side of caution, many enterprises are adopting a multi-cloud strategy &#8211; yet this typically entails far greater administrative complexity. According to IDC, keeping control on-premises is often simpler for many companies.<\/p>\n<p>Nevertheless, most enterprises continue to rely on the public cloud as a core component of their IT operations. The trend study conducted by IDC, however, clearly shows a shift toward a more hybrid approach. This model allows organizations to weigh critical factors &#8211; cost, performance, security, data protection, compliance, and manageability &#8211; on a workload-by-workload basis.<\/p>\n<h2>Frequently Asked Questions<\/h2>\n<details>\n<summary><strong>Why are some companies pulling back from the public cloud?<\/strong><\/summary>\n<p style=\"margin:8px 0 4px 24px;color:#555;line-height:1.6;\">For many, the public cloud has become too expensive, underperforms, raises security concerns, and proves difficult to manage. Compliance requirements are also a key factor.<\/p>\n<\/details>\n<details>\n<summary><strong>What\u2019s driving cloud costs through the roof?<\/strong><\/summary>\n<p style=\"margin:8px 0 4px 24px;color:#555;line-height:1.6;\">Beyond rising provider prices, complexity, energy costs, and emerging technologies like generative AI are major contributors. Over half of companies exceeded their 2024 cloud budgets.<\/p>\n<\/details>\n<details>\n<summary><strong>How much did 37signals save by moving away from the cloud?<\/strong><\/summary>\n<p style=\"margin:8px 0 4px 24px;color:#555;line-height:1.6;\">The company saved $1 million in the first year alone and expects annual savings of nearly $2 million.<\/p>\n<\/details>\n<details>\n<summary><strong>Why is on-premises infrastructure preferred for AI workloads?<\/strong><\/summary>\n<p style=\"margin:8px 0 4px 24px;color:#555;line-height:1.6;\">According to IDC, on-premises infrastructure delivers better performance and lower latency for AI workloads compared to the public cloud.<\/p>\n<\/details>\n<details>\n<summary><strong>What strategy are most companies adopting instead?<\/strong><\/summary>\n<p style=\"margin:8px 0 4px 24px;color:#555;line-height:1.6;\">Many are turning to multi-cloud or hybrid strategies to gain better control over costs, performance, security, and compliance.<\/p>\n<\/details>\n<h2>Editor&#8217;s Picks<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.cloudmagazin.com\/en\/2026\/03\/30\/api-first-why-modern-cloud-architectures-succeed-or-fail-on-api-design\/\">API-First: Why Modern Cloud Architectures Succeed or Fail at the API Design Stage<\/a><\/li>\n<li><a href=\"https:\/\/www.cloudmagazin.com\/en\/2026\/03\/29\/pretext-does-a-javascript-library-solve-the-browsers-30-year-old-text-layout-pro\/\">Pretext: Can a JavaScript Library Solve the Browser\u2019s 30-Year-Old Problem &#8211; or Is It Just Hype?<\/a><\/li>\n<li><a href=\"https:\/\/www.cloudmagazin.com\/en\/2026\/03\/29\/aws-vs-azure-vs-google-cloud-2026-the-honest-comparison-for-dach-enterprises\/\">AWS vs. Azure vs. Google Cloud 2026: An Honest Comparison for DACH Enterprises<\/a><\/li>\n<\/ul>\n<h2>More from the MBF Media Network<\/h2>\n<p><a href=\"https:\/\/www.securitytoday.de\" target=\"_blank\">SecurityToday<\/a> | <a href=\"https:\/\/mybusinessfuture.com\" target=\"_blank\">MyBusinessFuture<\/a> | <a href=\"https:\/\/www.digital-chiefs.de\" target=\"_blank\">Digital Chiefs<\/a><\/p>\n<p style=\"text-align: right;\"><em>Source header image: iStock \/ sdecoret<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"Many companies are partially withdrawing from the public cloud due to costs, security concerns, and other factors, according to IDC.","protected":false},"author":23,"featured_media":19542,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_focuskw":"Cloud cost and security concerns drive partial pullback","_yoast_wpseo_title":"Cloud cost and security: Why companies are pulling back","_yoast_wpseo_metadesc":"Many companies are scaling back their cloud usage. IDC cites costs, security, and performance as key reasons for the shift.","_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_meta-robots-adv":"","_yoast_wpseo_canonical":"","_yoast_wpseo_opengraph-title":"","_yoast_wpseo_opengraph-description":"","_yoast_wpseo_opengraph-image":"","_yoast_wpseo_opengraph-image-id":0,"_yoast_wpseo_twitter-title":"","_yoast_wpseo_twitter-description":"","_yoast_wpseo_twitter-image":"","_yoast_wpseo_twitter-image-id":0,"ngg_post_thumbnail":0,"pre_headline":"","bildquelle":"","teasertext":"","language":"de","_evm_translation_lang":"","featured_post":0,"featured_post_sortierung":0,"_wp_old_slug":["container-supply-chain-security-docker-sbom-2026","future-proof-it-healthcare-services","de-cix-global-data-traffic-surges-2024"],"footnotes":""},"categories":[932],"tags":[],"industry":[],"class_list":["post-28465","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-studies"],"evm_reading_time_minutes":5,"wpml_language":"en","wpml_translation_of":25888,"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Cloud cost and security: Why companies are pulling back<\/title>\n<meta name=\"description\" content=\"Many companies are scaling back their cloud usage. 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