UK enterprises regret going all-in on public cloud

As geopolitical tensions mount, UK IT decision makers are getting increasingly wary about using US cloud providers.

Research from Asanti found 95% of IT leaders are concerned about data sovereignty while a similar number have voiced worries about data residency. The result is that more than half (52%) are now taking strategic steps to reduce their exposure to US providers.

45% of those currently using US public cloud platforms said they plan to actively limit their data’s exposure to US jurisdiction in light of recent political developments.

“Organizations are becoming more aware and more wary of where their data is stored and who has jurisdiction over it,” said Stewart Laing, CEO of Asanti. “It’s no longer just about performance or cost. It’s about trust, control, and strategic sovereignty.”

There were other issues, however. More than three-quarters of those using US public cloud said that the operating costs were higher than they'd expected, and virtually all said they'd faced challenges during the migration.

On top of the costs, those bringing applications back on-premise or into colocation facilities cited limited control and customization, low data transfer for real-time applications, and security, compliance, and risk management concerns.

Two-thirds said they wished they'd taken a hybrid approach rather than going all-in on public options.

"Adapting organizational processes and culture to the cloud-based way of working was a significant challenge in migrating to public cloud," said one respondent:

"One of the biggest challenges was making sure that sensitive financial data was safe, and adhered to regulatory requirements,” another added.

The rise in companies building their own AI applications is also prompting many to reconsider their use of public cloud.

With the huge amounts of data storage and processing required, subscription models can be expensive, data transfer speeds can be too low for real-time applications, and compliance can be complicated and risky on globally distributed cloud servers.

Repatriation is easier said than done

Repatriation is by no means a simple task, however, and those embarking on this process have encountered significant challenges.

Of those actively pursuing cloud repatriation, 38% cited the complexity of moving applications back to internal systems, while 36% complained about inflexible contracts or cloud vendor lock-in.

Nearly half (41%) said they were worried about a lack of internal skills for repatriation.

Overall, while most people weren't unhappy with the cloud, they wished they had kept more applications in their own IT architecture - and that they'd planned better before taking the plunge.

Half said they should have used external consultants, and 45% that they should have made sure they better understood the public cloud providers' terms and conditions.

Four-in-ten believe they should have carried out more internal due diligence.

“Cloud is powerful – but not perfect. The lesson here is that infrastructure strategy needs to be driven by business needs, not vendor hype,” said Laing.

“We strongly advise UK organizations to revisit their current and future hosting strategies with a more critical eye, especially as AI workloads, regulatory scrutiny, and cyber threats escalate.”

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