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In the two years since repatriating most of its operations from the public cloud to data centers providing colocation services, Dropbox trimmed its operational expenses by $74.6 million. Particularly for those relying on applications that aren’t engineered for the cloud, such as legacy ERP systems, moving this to the cloud securely and without loss of performance requires the application to be replaced or rewritten – both of which take a lot of time and money. Here are the 3 major reasons businesses are leaving AWS and other large hosting companies, and where they’re headed now: 1. While public cloud architecture has delivered many benefits, experience has demonstrated that it isn’t always the right solution for every business. My usage was mainly for two things: Saving large amounts of files (build logs and such) on S3; Running NetBSD VMs on EC2. Although cloud technologies will continue to be an important part of IT strategy in the future, many companies are moving away from purely public cloud-based networks. Lots of Companies Are Leaving the Cloud. There’s also the nightmare scenario of cloud computing companies going out of business, potentially cutting their customers off from their data and cloud applications. Other enterprises have also gone all-in with AWS, including Intuit, Hertz, and Time, Inc. When looking at a “standard scale” for private cloud – where labor efficiency is less than 400 virtual machines/engineer – commercial software private clouds are the lowest total cost of ownership software option. Free up client IT budget With several high-profile data leaks involving cloud providers (an August 2018 AWS error, for example, exposed business-critical information involving over 31,000 systems for the company GoDaddy), their concerns are not without merit. There’s also the little matter of getting data back when a company decides to relocate its assets. Some notable companies using Google Cloud Platform (Compute Engine or App Engine) use Spotify, HSBC, Home Depot, Snapchat, HTC, Best Buy, Philips, Coca Cola, Domino's, Feedly, ShareThis, Sony Music, and Ubisoft. However, if you dig deeper, you’ll find that a growing number of organizations have public cloud buyer’s remorse. This group is nothing but laid off/struggling workforce of Dell, who have pulled each other into AWS. Joyent. But many are still maintaining critical IT assets on premises. This is an area where hosted private cloud really shines through – unlike public cloud environments, hosted private clouds enable you to tailor the environment to meet your specific business needs. Routinely cited as the leading reason for companies leaving the public cloud, security is a serious matter for today’s organizations. Routinely cited as the leading reason for companies leaving the public cloud, security is a serious matter for today’s organizations. Data-driven companies will be the winners in the next phase of the digital economy—the experience economy. Need List of Companies Using AWS for Your Marketing Campaigns? There are greater automation capabilities as well, as many hosted private cloud providers such as US Cloud make it seamless for you to provision resources as your business needs dictate. Why are companies increasingly moving away from public clouds such as AWS and Azure to a hosted private cloud option instead? By working with the rich connectivity options and versatile network environment of a colocation data center, companies can build customized solutions that address their biggest concerns and deliver their most pressing needs. Amazon Web Services (AWS) is a subsidiary of Amazon providing on-demand cloud computing platforms and APIs to individuals, companies, and governments, on a metered pay-as-you-go basis. Jeff Bezos is leaving perhaps the best CEO in tech history, having created three big companies: Amazon.com, AWS, and Amazon Marketplace / Fulfillment Services (Ben Thompson / Stratechery) Tech News ADMIN February 3, 2021 1 min read AWS classifies customer data into two categories: customer content and account information. Better MSFT support experience, Use Microsoft Premier to accelerate your digital transformation journey. The very nature of public cloud infrastructure allows data to be accessed from anywhere, and data often has to travel exposed to the open internet, making it vulnerable to theft or infection by malware. It’s not all just hype – according to IDC, the growth of public cloud adoption will be three times that of private clouds by 2019. Which AWS service allows companies to connect an Amazon VPC to an on-premises data center?A . If anything, they’re expected to grow significantly, with a recent IDC study showing that public cloud spending will more than double by 2023. By shifting to a private cloud environment facilitated through a colocation or software-defined data center, companies can secure much higher levels of uptime service. Public cloud providers do offer extensive security measures, but many of them make it difficult to actually use those defenses. Ernie Sampera is the Chief Marketing Officer at vXchnge. To put it mildly, leaving behind AWS was no silver bullet. Server downtime can cripple business operations, leading to reduced productivity, lost opportunities, and lasting brand damage. API GatewayD . When it was launched in 2006, it provided only one service. Telstra has inked a framework agreement with Amazon Web Services (AWS) as part of its strategy to develop multi-access edge computing solutions amid launching a new ‘Centre of Excellence’. Forrester Research shows migration to hosted private clouds are on the upswing, with adoption rising from 28% to 33% in North America in Europe. Imagine, while shopping, you view a bag of coffee beans through your phone's camera and you see the coffee plantation where the beans were grown or watch a video of the roasting process. Yes … you read that correctly. 3 Reasons Why 33% of Companies are Ditching AWS & Azure, Optimize MSFT Support Costs Now to Emerge Stronger Than Competitors, How to Optimize Your Microsoft Unified Support Contract in 2021, New US Cloud Covid Relief Pricing Aids Business Recovery. It is a single annual payment on top of an employee’s total annual wage. Joyent is a software service company that is based out in San Francisco, California. When cloud computing began to take over the IT industry a decade ago, many organizations jumped in with both feet, migrating their operations entirely into the cloud or starting up new companies based around cloud services. Home » Cloud Computing and Security » 3 Reasons Why 33% of Companies are Ditching AWS & Azure. Before you leave, get your free copy of our, an up-front investment in servers or infrastructure, rich connectivity options and versatile network environment. Next, he began deleting Voova’s AWS servers. The company reportedly was never able to claw back the deleted data. In that same survey, 36% of cloud adopters and planners state hosted private cloud is – or will be – their primary computing platform. Hosted private clouds usually give you more options and control in this regard than that of a public cloud. Amazon Web Services is the leading cloud vendor with a 32% share. In many cases, the ideal solution is a hybrid cloud deployment, which combines the security and control of a private cloud with the scalability and resources of a public cloud. This is not to say public clouds are going anywhere. However, cost goes beyond just the sticker price – you have to take into account other factors, such as labor efficiency and scale. Many companies eventually get to a point where it simply makes more financial sense to make an up-front investment in servers or infrastructure (either physical or virtual) and manage it themselves. While public cloud providers regularly tout the benefits of being able to access data from anywhere at anytime, that access doesn’t amount to much if the provider is experiencing system downtime. Legacy applications can often be migrated from on-premises infrastructure to a hosted private cloud as is, which is a major benefit. That’s compensation that can’t be taxed! These cloud computing web services provide a variety of basic abstract technical infrastructure and distributed computing building blocks and tools. On the surface, it may seem to be cheaper to use a public cloud option instead of a private one. Today, more and more companies are moving onto "the cloud"---not off. AWS Requires Proprietary Knowledge. The AWS is also called the “13th month payment”. According to 451 Research’s Cloud Price Index, there’s a “Goldilocks Zone” where private cloud beats public on price, and in a custom survey for VMware, 41 percent of users claimed to be in this zone. Many compliance regulations also mandate you know exactly where your data is stored at any given time. Now the company offers more than 140 services to its clients. While the company still stores about 10 percent of its data in the AWS cloud, the transition still made Dropbox a poster child for the benefits of data repatriation. AWS has become one of Amazon's key businesses, and in full-year 2020, it earned $45.4 billion in net sales and $13.5 billion in operating income. Amazon.com Inc. Chief Executive Officer Jeff Bezos will step down from his post in the third quarter of 2021 and be replaced by Andy Jassy, the head of the company’s cloud computing unit. Technology “moves pretty fast. However, cost goes beyond just the sticker price – you have to take into account other factors, such as labor efficiency and scale. It depends on your specific business needs, but you can safely reject the notion that public cloud is the cheapest option in all situations. With several high-profile data leaks involving cloud providers ( an August 2018 AWS error , for example, exposed business-critical information involving over 31,000 systems for the company GoDaddy), their concerns are not without merit. Whether hardware, software, or better access to system resources, organizations have many more options available to you in a hosted private cloud environment. Enterprises can replace MSFT Premier/Unified with US Cloud and drop an immediate costs savings of 30-50% in year 1. AWS has made its compute services very sticky by making them difficult for users to remove workloads like databases to run them elsewhere. ... AWS … His ascension to become the new chief executive of the parent company was announced during the company’s fourth-quarter earnings call. In this article we are going to list the 15 biggest companies that use AWS. This ensures that their data and assets will be available when they need them most. As a result, Google does not use or depend on any of the AWS services, as this may bless or lose their cloud operations. For today’s companies, few assets are more valuable than their data. 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