Repatriation and Cloud Cost Management

While there are scenarios where public cloud is much less expensive than data centers, there are times when it’s much more expensive. Is repatriation a viable way to manage cloud costs? SHOW: 520SHOW SPONSORS:CloudZero - Cloud Cost Intelligence for Engineering TeamsDatadog Security Monitoring Homepage: Modern Monitoring and AnalyticsGet started monitoring your serverless environment with a free 14 day Datadog trial. Listeners of The Cloudcast will also receive a free Datadog T-shirt.Okta - Safe Identity for customers and workforceTry Okta for FREE (Trial in 10 minutes)SHOW NOTES:The Cost of Cloud, a Trillion Dollar Paradox (a16z)Networking in the Cloud: Data Transfer Fundamentals (Last Week in AWS)ARTICLE QUOTES: Repatriation results in one-third to one-half the cost of running equivalent workloads in the cloudYou’re crazy if you don’t start in the cloud; you’re crazy if you stay on it.infrastructure spend should be a first-class metricTHE CASE FOR REPATRIATIONCloud costs are a large % of Cost of Sales (often times 50-80%)Cloud providers operate on large margins (e.g. AWS at 30%)Repatriation could reduce costs 30-50% of existing cloud spendTHE REALITIES OF REPATRIATIONThe case in the article is primarily based on 25-40x valuation multiples for software companies. While every companies believes they are a software company today, not every company is getting 25-40x revenue multiple from the market.  All repatriation calculations begin with, “if you run a highly efficient data center”All repatriation calculations next involve, “assuming you have the talent to run a cloud”Repatriation is technical debt. How does your company typically handle that?Less than 100% repatriation creates multiple operational models (ops, billing, security, etc.)Most companies use a subset of the features in any given cloud.Can you create a financial situation in your data center that’s similar to the cloud? FEEDBACK?Email: show at thecloudcast dot netTwitter: @thecloudcastnetFEEDBACK?Email: show @ the enterprise ai show dot comeBluesky: @EntAIShow.bsky.socialTwitter/X: @TheEntAIShowInstagram: @TheEntAIShow