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: 520 SHOW SPONSORS: CloudZero - Cloud Cost Intelligence for Engineering Teams Datadog Security Monitoring Homepage: Modern Monitoring and Analytics Get 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 workforce Try 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 cloud You’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 metric THE CASE FOR REPATRIATION Cloud 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 spend THE REALITIES OF REPATRIATION The 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 net Twitter: @thecloudcastnet FEEDBACK? Email: show @ the enterprise ai show dot com Bluesky: @TheEntAIShow.bsky.social Twitter/X: @TheEntAIShow Instagram: @TheEntAIShow