Right work, right place: cloud rebalancing holds potential for every enterprise

Four in five businesses want to rebalance their cloud to lower cost, improve compliance, and achieve a competitive edge.

Cloud rebalancing has grown quickly in client discussions over the past two years. And recent data suggests this isn't a curiosity. VMware sees eight out of ten CEOs moving workloads back to on-premises. And a Barclays annual survey has seen CIO interest in rebalancing rise from 43% in 2020 to 83% in 2024.

In my conversations with clients, I see the trend boils down to a simple reality: public cloud or on-premises is not a "one size fits all" solution for enterprises. At a global level, HPE has done the work with Barclays' to support its hybrid cloud strategy. In migrating and deploying more than 50,000 workloads to their private cloud estate, with a further doubling over the next three years, we've learned a lot about putting the right workloads in the right place for the task.

Cost, compliance, and control

Cost is always a key concern. After an aggressive era of attractive cloud pricing, the explosion in data storage and computational demand has seen prices head further north than anyone expected. So do the numbers still stack up? Understanding which workloads fit the right environment is key to investigating what to do to get the right compute at the right price.

For example, it may be ideal to run an AI proof of concept with the flexibility of a hyperscaler, but at deployment time the added expense of GPUs and data sovereignty running at enterprise scale can be better suited to on-premises solutions.

Different workloads require different infrastructure, so its critical businesses understand the possibilities and limitations both from an operational and cost perspective. We are hearing case studies where the savings of a reviewing cloud strategy and rebalancing infrastructure is reaping incredible rewards. Tens of millions and even hundreds of millions in savings. If any transformation project could promise these kinds of returns it would be an easy sell to a boardroom.

While costs have been rising, so have compliance demands on business data controls. Privacy, security, compliance, sovereignty. Each is now a business pillar with many layers of careful management required that continues to grow in a tricky era of global instability.

Heightened government and customer awareness circle businesses today when it comes to how businesses should care for information. A false step in any of these areas can have significant immediate harm to a business and long-term reputational fallout. The assurance of a third-party service provider is not always enough to deliver the confidence a boardroom or wider stakeholders demand.

The right work in the right place

So what does it mean to rebalance? It's about examining your systems and looking at what is "cloud optimised". The right mix of data and processes in the location that suits each best – whether that be public cloud, private cloud, or on-premises. We run workshops for customers to help them map out the 'right mix' so they have confidence in what should live in the hyperscalers and what should move back to on-premises.

The move to the cloud for many has been a drip feed over a long timeline. That can make rebalancing seem overwhelming, but as our work with our customers shows, a phased approach is likely the best approach. A migration that can reduce tech debt, lower costs, and enhance overall infrastructure performance.

The rebalancing process can have its challenges. There is technical complexity in moving workloads with minimal disruption, and important analysis processes to ensure data integrity during migration. But there are also great options available for working with experts to make the process as smooth as possible, as well as automation and orchestration tools to maximise the efficiency of the journey.

Striking a balance

Cloud rebalancing is certainly a project that requires time and planning. If you are already feeling concerned with those costs or your compliance footing, it's important to start now to get your program underway to make this a smooth and smart path that sits within wider ongoing transformation efforts.

Digital transformation has always been a matter of achieving a strong competitive edge through the most effective use of technology possible. We should always be examining the state of enterprise cost, compliance, and control to know we are on the right path. We're seeing plenty of clients ready to share good news with the executive after a right mix assessment. When cost savings align with enhanced performance we move toward the very best of what transformation can be.