When it comes to cloud growth, it’s probably safe to say that the sky isn’t falling, even though revenue growth rates have been. We’ve seen the aggregate public cloud revenue growth decline from 32% in Q1 last year to 19% this year. That’s a pretty steep drop-off, and it shows that the cloud has run into some headwinds.
As a result, we have seen folks talking about a great repatriation where cloud workloads will move back on-prem, but the evidence doesn’t suggest that’s happening. Instead, companies may be slowing cloud migration as they look at the most efficient way to distribute their workloads.
Clearly, companies have learned that not every workload is well suited to the cloud. Some that can’t deal with even a little bit of latency to get to the cloud and back, for example, need to be hosted on the edge to be closer to the compute source. But it doesn’t look like many IT departments long to go back to the days of racking and stacking new servers.
So why …
