Cloud repatriation — the shifting of workloads from public cloud to a hybrid cloud deployment model — has been on the rise. In fact, IDC research reveals that 80% of companies plan to repatriate at least some of their workloads currently hosted in the public cloud.

For multi-tenant data center (MTDC) operators, cloud repatriation presents multiple new opportunities to win over new organizations who are looking for a hybrid partner, as well as win back tenants previously lost to public cloud providers. Read on to learn more about why cloud repatriation is happening, and how MTDC operators can best position themselves for success.

Why Are Organizations Pulling Out of the Public Cloud?

Workload diversity is a reason for cloud repatriation. Different types of applications come with a long list of unique and specific requirements. For example, high-density applications used for artificial intelligence, machine learning and deep learning create compute-intensive workloads that require high-density racks. The fees that public cloud providers charge for accessing and running specialized GPU instances can add up quite quickly, which all but reverses the cost savings promise of public cloud platforms.

Data sovereignty regulations, which stipulate that data must be stored in the same country where it  collected, is another cloud repatriation driver. Data sovereignty presents significant complexity for organizations operating in multiple countries, which most cloud providers aren’t prepared to manage.

How Do Hybrid Cloud Strategies Help?

Hybrid cloud approaches enable organizations to develop and execute an infrastructure strategy that is based on placing workloads where they run best. As a result, many organizations are moving toward a hybrid cloud approach that leverages private cloud/colocation, public cloud and edge environments.

For MTDC operators, now is the time to enhance physical data center infrastructure solutions, as well as focus on strategies for helping organizations ease the transition from the public cloud to colocation facilities. Those who can help tenants find ways to improve control costs while meeting SLAs are best positioned for success moving forward.

To learn more about cloud repatriation and what it means for MTDC/colocation providers, be sure to download our latest eBook – Three Key Considerations for Colocation Providers.