Cloud Repatriation: Why Some CIOs Are Bringing Workloads Back On-Premises | InformationWeek

For nearly two decades, organizations have embraced cloud migration, often adopting cloud-first strategies. However, a growing number are now reconsidering that approach, bringing workloads and data back on-premises. While the trend of “cloud repatriation” is gaining traction, a surprising number of Chief Information Officers (CIOs) remain steadfast in their commitment to the cloud, even when starting their infrastructure planning from scratch.

The 2025 State of the Cloud Report from Flexera, an IT management software provider, found that 21% of 759 respondents had repatriated workloads, and data. The primary drivers for this shift are cost concerns, security considerations, and a desire for greater reliability. Despite this increase in repatriation, many CIOs continue to view the cloud as the optimal environment for modern applications, particularly those leveraging artificial intelligence (AI), provided systems are properly configured and managed.

To understand this divergence in strategy, we spoke with two CIOs about their experiences. The question posed was simple: “What workload would you not move to the cloud again if you were starting over today?” The answer, surprisingly, was none.

Hamit: ‘We’ll keep expanding our cloud footprint’

Josh Hamit, senior vice president and CIO at Altra Federal Credit Union, and a member of the ISACA Emerging Trends Working Group, explained that his organization has taken a deliberate, gradual approach to cloud migration. “I have been pondering whether we have moved any workloads into the cloud that we have later regretted, and I honestly cannot think of anything that stands out,” Hamit said. “That is probably more a result of our cloud strategy taking a gradual approach versus going all-in.”

Hamit emphasized the importance of a measured approach. Altra Federal Credit Union continues to operate many workloads within its own data centers, gradually testing and migrating systems to the cloud. Some critical workloads have been delayed due to vendor limitations, awaiting confirmation that platforms like AWS or Azure can operate effectively. However, Hamit anticipates continued expansion of their cloud footprint in 2026 and beyond.

Lean on experienced partners

Hamit highlighted the value of partnering with experienced cloud service providers. “What I will add about our cloud journey is that we’ve been very deliberate in working with experienced partners that have helped us navigate migrations,” he stated. He specifically cited leveraging Microsoft cloud services like SharePoint Online, OneDrive, and Fabric, and the importance of setting up robust security controls like Microsoft Purview for data classification and data loss prevention.

Hamit acknowledged that organizations that rushed into cloud migration may have identified workloads that were not well-suited for the environment. “But I’m sure a lot of organizations that have gone through a fast-paced migration into the cloud have probably identified workloads that just were not very suitable for the cloud and probably wish they could maybe go back.”

Cloud is ‘where innovation is happening’

Despite potential pitfalls, Hamit remains optimistic about the cloud’s potential. “Cloud is definitely something that is absolutely part of our technology and organizational strategy. That’s where the innovation is happening,” he said. “We’re seeing a lot of capabilities that cloud is offering with direct tie-ins to AI and things that just are much more difficult to do in an on-prem environment.”

He also pointed to the scalability and speed offered by cloud environments as key advantages. “Cloud has more scalability and the ability to spin systems up quicker. Those types of capabilities are key to our speed and agility for sure.”

Bergamo: ‘An environment that can expand’

Sue Bergamo, a 25-year IT and cybersecurity leader now providing fractional CIO and CISO services through BTE Partners, and a trustee with the Boston chapter of the Society for Information Management, expressed an even stronger commitment to the cloud. “From my vantage point as a CIO and cloud architect, I would move every workload to the cloud unless it was something seriously top secret,” she said. “I love everything about the cloud: the enormity of it, the diversity of it, the architecture. It really is the largest data center in the world. But it’s not just a data center; it’s a culmination of data centers. It gives you an environment that can really expand worldwide.”

Configuration is key

Bergamo emphasized that security in the cloud is comparable to on-premises environments, provided This proves properly configured. “Once you know how it works, it’s no less secure or no more secure than an on-prem environment,” she explained. “You’ve got public cloud environments that big companies like Microsoft or Amazon are protecting and then you have your environment within that environment that your company is protecting. So, it’ almost like a double layer of security as long as you’re doing it the right way.”

Proper configuration is also crucial for performance and cost management. “You’ve got to have good architects who know how to set the environment up, whether it’s on-prem or in the cloud,” Bergamo stated. She explained that latency issues and overage costs can be avoided by correctly sizing resources and configuring scaling policies, mirroring the considerations required for on-premises infrastructure.

“There can be overage costs with cloud if you don’t configure correctly. The cloud expands based on your workloads and your resource needs, so if you exceed your current environment when it scales, you’re going to have overage charges. But if you configure correctly, you shouldn’t. That’s just like in an on-prem environment: If your workloads exceed the size of your environment, you’ve got to go out and buy more equipment. It’s the same concept with cloud, except it happens virtually.”

The experiences of Hamit and Bergamo suggest that the decision to repatriate workloads is not universal. While cost, security, and reliability are valid concerns, a well-planned and properly managed cloud strategy remains a compelling option for many organizations, particularly those seeking to leverage the benefits of AI and scalability.