Podcasts Technology The Cloudcast Repatriation and Cloud Cost Management

Repatriation and Cloud Cost Management

Published: June 6, 2021, 5 a.m.

b'

While there are scenarios where public cloud is much less expensive than data centers, there are times when it\\u2019s much more expensive. Is repatriation a viable way to manage cloud costs?\\xa0

SHOW: 520

SHOW SPONSORS:

SHOW NOTES:

ARTICLE QUOTES:\\xa0

Repatriation results in one-third to one-half the cost of running equivalent workloads in the cloud

You\\u2019re crazy if you don\\u2019t start in the cloud; you\\u2019re crazy if you stay on it.

infrastructure spend should be a first-class metric

THE CASE FOR REPATRIATION

  1. Cloud costs are a large % of Cost of Sales (often times 50-80%)
  2. Cloud providers operate on large margins (e.g. AWS at 30%)
  3. Repatriation could reduce costs 30-50% of existing cloud spend

THE REALITIES OF REPATRIATION

  1. 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. \\xa0
  2. All repatriation calculations begin with, \\u201cif you run a highly efficient data center\\u201d
  3. All repatriation calculations next involve, \\u201cassuming you have the talent to run a cloud\\u201d
  4. Repatriation is technical debt. How does your company typically handle that?
  5. Less than 100% repatriation creates multiple operational models (ops, billing, security, etc.)
  6. Most companies use a subset of the features in any given cloud.
  7. Can you create a financial situation in your data center that\\u2019s similar to the cloud?

\\xa0

FEEDBACK?

'