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Why are Organizations Moving to On-Premise Data Centers? While public cloud promised agility and cost savings, it's the predictable costs and direct ownership of data centres and on-prim cloud solutions now regain appeal

By Shishir Miglani

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Not long ago, the tech world buzzed with the promise of cloud computing: revolutionizing how corporations work, slashing costs, and ushering in a new era of agility. So, everyone jumped on board, migrating data and workloads with one goal in mind – the cloud nirvana.

But for many corporations, the dream turned sour. 'The cloud isn't a one-size-fits-all solution.' This realization fuelled a wave of 'cloud repatriation,' with companies returning to the familiar ground of data centers. Unexpected fees, security concerns, and a mismatch between corporate needs and cloud offerings drove this shift. Now, prefab containerized Edge Data Centers (EDCs) emerge as a compelling alternative, offering cost savings, security, and flexibility. In essence, while public cloud promised agility and cost savings, it's the predictable costs and direct ownership of data centres and on-prim cloud solutions now regain appeal.

Unexpected Pricing Metrics

Public Cloud providers presented corporations with a paradigm shift in how they thought about infrastructure pricing, promising significant cost cuts. However, the reality painted a different picture. Not only did the complex pricing structures with hidden fees and unexpected charges burden IT managers with the tedious task of deciphering and auditing monthly bills, but it also exacerbated security concerns. Ensuring compliance with intricate corporate requirements became a significant challenge. To compound these issues, tackling security aspects in the cloud inflated costs disproportionately, leaving IT teams constantly searching for ways to track and curtail monthly expenses without impacting applications.

Large corporations thrive on clearly defined cost centers and operate efficiently within set budgets. Data centers provided just that – a well-defined cost component. Resources weren't dedicated solely to auditing expenses or combating unpredictable price fluctuations. Now, cloud necessitates deploying entire teams to manage these aspects before cost fluctuations breach budget allocations. The arduous task of deciphering cloud costs is further complicated by lengthy, page-turning bills – rendering the "paperless" initiative ironic.

But cloud's biggest misstep lies in its inability to cater to most corporate needs, which are often not cutting-edge like Generative AIs. This mismatch results in exorbitant costs for corporations without delivering on the promised cost savings. This unexpected reality left them stunned, grappling with the newly created problems of cost disparities and security concerns amidst privacy anxieties.

Embracing prefab container edge data centers

This exodus from the public cloud has created an opportunity for a new player - Prefab Container Edge Data Centers (EDCs). Interestingly, these EDCs address most of the concerns that drove corporations away from the public cloud.

Security is a top priority, with prefab containerized EDCs being designed to meet compliance standards and adhere to tier compliant infrastructure, ensuring data privacy and integrity. Additionally, they provide significant savings on real estate while still ensuring accessibility to a physical data center with on-prim cloud, often on an exclusive basis. Furthermore, these solutions offer a fixed-cost model, allowing for effective planning for future growth without unexpected expenses. Unlike public cloud services where pricing fluctuations can be unpredictable, there are no surprises in cost with prefab containerized EDCs, eliminating the need for extensive audits. Moreover, owning a data center through this solution is often more cost-effective than traditional on-premise systems.

Clients can track and manage their EDCs conveniently through a mobile application enabling real time monitoring, alerts and remote control. The flexibility of prefab containerized EDCs allows corporations to tailor their infrastructure to their specific needs, enabling efficient adaptation to evolving requirements without the need for constant adjustments.

In conclusion, data centres and on-prim cloud solutions allow one to have full control of their infrastructure and the fee they pay. The model one chooses will most likely be dependent on the level of security needed with regards to fulfilling compliance standards.

Shishir Miglani

Co-Founder, PlanckDOT Technologies

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