On-premises is back in fashion, and cloud is on the way out… or is it? In our latest article, we explain what is happening and how you can benefit from both worlds. 

Organizations are sick and tired of the cloud; almost half want to return to on-premises. At least, that is how it appears when you read the headlines stating that 42 percent of organizations using the cloud plan to move back to on-premises. Even the cloud giant Amazon AWS has this, seeing a trend of moving away from the cloud. 

So, is the cloud dead now? As usual, there are quite a few shades of grey between the black and white here. Let us explore the subject further. 

Cloud exit – why is this even happening? 

As with all technologies, there is a lot of action for new tech, reaction when we get to know it, and finally, normalization. For years, we have heard numerous tales of organizations going cloud first and that everything is great on that side of the fence. This uptick in reports saying the opposite is a natural reaction to the cloud movement. At the same time, the world around us is changing quickly, forcing us to rethink how we handle cloud services. 

At the same time, “the cloud” is not a single, solid item. It consists of everything from online storage, via cloud-based virtual machines, to a wide variety of SaaS services. Exactly what organizations want to move back on-premises differs greatly depending on the organization. 

While the cloud has many great advantages, it is not the absolute best for everything. While it can be a cost-effective solution to workloads, storage, and other issues, it also has its own potential issues.  

Cost is usually a major factor. While the model of paying for what you use sounds great, it can quickly lead to overspending if you do not keep track of all the small costs, inflating the total cost. 

Size is also important here. Smaller organizations and organizations moving smaller projects to the cloud could provide a cheap solution. However, developing your own infrastructure is usually more economically viable for organizations of a specific size. 

Another factor is regulations. A few years ago, we had GDPR; this year, DORA for the financial sector and NIS2 entered into force last October. Knowing where your data is and who has access to it becomes increasingly important, and the cloud can be more challenging to track in that sense. 

Geopolitical factors also play into this. The world changes rapidly around us, and because of that, keeping your own data close could make you more resilient to these constant changes. 

Security is another crucial aspect here. On-premises, you can have total control over every aspect of your cybersecurity. This is not to say that cloud services are not secure, but you can not control every aspect of them. 

Back to on-prem — in a modern way 

While on-premises solutions give you complete control over your data and security, they also invoke a feeling of older times. Do we really want to return to being at the office five days a week, using only company-approved devices, and generally feeling like we have taken a technological step back? Of course not. 

The cloud is not going anywhere, but now, when we are over the honeymoon phase, adopting a hybrid infrastructure model is a more mature step. Leverage the perks of SaaS services and the cloud, but keep your critical data on-premises. 

Modern solutions will seamlessly connect to all parts of your infrastructure, making everything part of the same system. They will also use the same adaptable and secure login method so that your users feel familiar and at home everywhere they go. 

Single sign-on and an app portal allow users to access applications and services as easily on-premises as in the cloud. One login gives users access to everything they need, regardless of where they are. This setup can easily include legacy on-premises applications without support for modern authentication methods. 

Authentication can be secure and flexible, adapting to users' needs and security levels. Multi-factor authentication works best when multiple options are available in the same system and for different user needs. For example, your front desk can sign in using an authenticator app while your admins use smart cards or security keys, all in the same system. 

Remote work is a given in today’s world, not just as a by-product of the pandemic years but to enable the hiring of skilled remote workers. Logging in and accessing everything a user needs should be as easy remotely as it is at the office. This also means skipping a VPN connection and all the administrative challenges associated with making it secure. 

Email, in the form of Exchange on-premises, should also be easy, secured by MFA, and available even on private devices. In addition to a secure connection, it should filter out what can be viewed on which device to prevent sensitive data from leaking. 

Lastly, management of users, access rights, and authentication should be just as easy as it is for a user to log in. Most of it should be centrally managed, making it easier to keep track of everything, quickly adapt to ongoing risk management, and always stay compliant with new and upcoming regulations.  

Of course, there are many other areas where modern solutions can seamlessly integrate on-premises and cloud services. For example, you could use the same secure login for Windows, sync local directories with online counterparts like Entra ID, and ensure that all files sent by email, inside and outside your organization, are encrypted and traceable.