Cloud Repatriation Trends: Why CIOs Are Rethinking the Cloud – and What They Won’t Move Back

For nearly two decades, organizations have steadily migrated workloads to the cloud, often adopting cloud-first strategies. However, a growing number of Chief Information Officers (CIOs) are now reversing course, bringing certain workloads and data back to on-premises infrastructure. Although cloud adoption remains strong, concerns around cost, security, and reliability are driving this shift, known as cloud repatriation. Despite these trends, many CIOs remain committed to the cloud, particularly for modern workloads leveraging artificial intelligence (AI).

The Rise of Cloud Repatriation

The Flexera 2025 State of the Cloud Report revealed that 21% of 759 survey respondents had repatriated workloads and data as of early 2025 [1]. This indicates a growing trend of organizations re-evaluating their cloud strategies and bringing some operations back in-house. Despite this repatriation, overall cloud workload footprints continue to increase, suggesting a nuanced approach rather than a wholesale abandonment of cloud services [2].

Why Are CIOs Bringing Workloads Back?

Several factors are contributing to the rise in cloud repatriation:

• Cost: Unexpected cloud costs and the complexity of cloud pricing models are driving some organizations to reconsider on-premises solutions.
• Security: Concerns about data security and compliance are prompting some organizations to maintain greater control over their data by keeping it on-premises.
• Reliability: Some organizations have experienced reliability issues with cloud services, leading them to bring critical workloads back in-house.

What Workloads Are Staying in the Cloud?

Despite the trend of repatriation, CIOs are firm on keeping certain workloads in the cloud. Josh Hamit, Senior Vice President and CIO at Altra Federal Credit Union, stated he couldn’t think of any workloads he would not move to the cloud again, attributing this to a gradual and deliberate cloud strategy [3]. He emphasized the importance of leveraging experienced partners for successful cloud migrations and architectural foundations.

Sue Bergamo, CIO and CISO at BTE Partners, echoed this sentiment, stating she would move every workload to the cloud unless it involved highly sensitive data [3]. She highlighted the scalability, innovation, and architectural advantages of the cloud, particularly for modern applications.

The Role of AI and Innovation

Both CIOs emphasized the cloud’s importance for innovation, particularly in the realm of artificial intelligence. Cloud platforms offer capabilities and direct tie-ins to AI that are difficult to replicate in on-premises environments. The scalability and speed offered by the cloud are also crucial for agility and rapid development.

FinOps and Cloud Cost Management

As cloud adoption continues, managing costs effectively is paramount. The Flexera 2025 State of the Cloud Report highlights the growing importance of FinOps practices. Fifty-nine percent of organizations now have a dedicated FinOps team, up from 51% the previous year [2]. This demonstrates a proactive approach to cloud cost optimization.

Looking Ahead

The cloud landscape is evolving. While cloud repatriation is a notable trend, it doesn’t signal the end of cloud adoption. Instead, it represents a more mature and strategic approach, where organizations carefully evaluate which workloads are best suited for the cloud and which are better managed on-premises. The battle for dominance between Amazon Web Services (AWS) and Microsoft Azure continues [1], and organizations will continue to leverage both platforms, alongside managed service providers (MSPs), to optimize their cloud strategies. Sustainability, software licensing, and the integration of AI will be key areas of focus in the years to come [1].