Cloud Repatriation: The Brutal Truth About Getting (Telecom) Cloud Right

Cloud Repatriation: The Brutal Truth About Getting (Telecom) Cloud Right

Introduction: Why This, Why Now

We are witnessing a fundamental shift in how the industry thinks about cloud. The brutal truth we're seeing unfold is something I've been writing about for some time - cloud is not a one-size-fits-all solution, and we're now hitting the reality check phase.

Consider this: According to Barclays, 83% of enterprises are planning to move workloads back to private cloud from public cloud. And what's even more telling? The recent Infosys report shows telecom companies are using less than half of their reserved cloud infrastructure.

Let that sink in for a moment.

This isn't just about cost - though that's a massive factor. This is about the fundamental disconnect between buying cloud and doing cloud properly. I wrote about this distinction in my previous articles, but now we're seeing the real-world implications play out.

To make it easier to read I list all the source references I used at the end.

Part One: The Reality of Cloud Economics

Let me share a story that perfectly illustrates what's happening. 37signals, a company with about 80 employees and over 100,000 customers, just completed moving seven applications off public cloud. Their results?

They're projecting over $10 million in savings over five years:

To recover the savings they only spent $700,000 on hardware

  • They recovered that investment in just six months
  • They're using the same size operations team as before
  • Their applications are running faster than in the cloud

The brutal truth: When you know your workload patterns and have predictable traffic, renting compute comes with a 30% premium - even if you're good at managing cloud costs.

Part Two: Why Telecom Is Different (And Why That Matters)

Here's where I need to be absolutely clear: Telecom has unique challenges that make our cloud journey different from a web company like 37signals.

We're dealing with:

  • Highly distributed workloads
  • Real-time performance requirements
  • Line-rate IO demands
  • Complex network speeds

But this doesn't mean we can't learn from their experience. In fact, it makes the lessons even more valuable.

Part Three: A Framework for Getting It Right

Based on our experience running massive scale cloud-native operations in telecom, here's what actually works:

Assessment That Matters

Don't just lift and shift. Understand your workload patterns deeply. Most telecom companies have got this backwards - they're buying cloud capacity first and asking questions later.

Infrastructure Reality Check

You need to be honest about your capabilities. Do you have:

  • A competent operations team?
  • Predictable, not fluctuating traffic load?
  • Clear performance requirements?
  • Stable business metrics?

Modernization That Makes Sense

Containerize where it adds value, not because it's trendy. Remember: containerization without operational transformation is just expensive virtualization.

Migration That Works

Start with non-critical workloads. Test thoroughly. Measure obsessively. The goal isn't to move fast - it's to move right.

Part Four: The Path Forward

For telecom to own its own future, it must become expert at running cloud, NOT buying cloud. This means:

  1. Building operational expertise first
  2. Designing for cloud independence
  3. Moving predictable workloads to private infrastructure
  4. Understanding that edge requirements are different
  5. Creating real-time operations capabilities

The Future Is Multi-Cloud, But Not How You Think

Let me be clear about something: Public cloud isn't bad. Like all technology, it becomes problematic only when it's treated as a religion rather than a tool. The future isn't about abandoning public cloud - it's about using it strategically while building our own capabilities.

Closing Thoughts

If telecom companies don't master cloud operations - both public and private - we risk becoming nothing more than infrastructure companies buying innovation from hyperscalers. The question isn't whether to use public cloud or private cloud. The question is: Do we want to control our own destiny?

The window for getting this right is closing. We have maybe two years to figure this out, and another fifteen to execute successfully. The game isn't over, but we need to start playing it smarter.

Please reach out with comments or questions.

Why Rakuten Cloud Native Platform is Ideal for Repatriation

Shameless plug!

Rakuten Cloud Native Platform offers several advantages that make it an excellent choice for workload repatriation:

Seamless Kubernetes Integration

Rakuten CNP is built on non-modified Kubernetes, providing a consistent container orchestration platform that simplifies the migration of containerized workloads from public clouds.

Intuitive Declarative Interface

The platform offers an intuitive, declarative interface with advanced automation, reducing deployment complexity and minimizing human error during the repatriation process.

Comprehensive Application Lifecycle Management

Rakuten CNP automates the entire application lifecycle, including instantiation, starting, stopping, migration, scaling, and deletion. This automation streamlines the repatriation process and ongoing management of workloads.

Advanced Workload Placement

The platform's intent-based workload placement and resource auto-detection capabilities ensure optimal performance and resource utilization for repatriated applications.

Support for Both Containers and VMs

Rakuten CNP supports multi-container runtime, enabling the migration of both containerized applications and traditional virtual machines. This flexibility is crucial for organizations with diverse workloads.

Enterprise-Grade Storage Features

The platform includes built-in enterprise-grade storage capabilities, such as snapshots, clones, replication, and encryption. These features ensure data integrity and security during and after the repatriation process.

Application-Aware Infrastructure

Rakuten CNP's application-aware infrastructure ensures that migrated workloads have the exact resources required to meet Service Level Agreements (SLAs), facilitating a smooth transition.

Efficient Resource Utilization

By providing superior infrastructure utilization, Rakuten CNP allows organizations to support more services on their existing infrastructure, potentially reducing the need for additional hardware investments during repatriation.

Simplified Application Onboarding

The platform's 1-click application onboarding and large ecosystem of pre-packaged partner solutions accelerate the repatriation process and reduce complexity.

In conclusion

Rakuten Cloud offers a comprehensive set of features that address the key challenges of workload repatriation. Its automation capabilities, support for diverse workloads, and focus on application-aware infrastructure make it an ideal platform for organizations looking to effectively move their applications back to a private cloud environment.

Article References

To make it easier to read I list all the source references I used here.


I had a good conversation with a retired analyst friend yesterday that got triggered by this (he has very high respect for AWS engineering and I think we should all share the same!). Here is the conclusion. What works well depends on having a really good team. If you are really good (37signals good) then you can be good in public and in private but if you are good in private, you will save a ton of money. If you are really bad (no names), you will be really bad in both public and in private. Hard to tell where you will be worse or why. The 52% unused capacity is not a good look but what is it in private? To quote Leo Tolstoy - "All happy families are alike; each unhappy family is unhappy in its own way". Bonus point for the name of the novel...

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Sebastian Barros

Regional Head of Enterprise Wireless Solutions | Ex-Google | Founder | Author | Doctorate Candidate

1 个月

My perspective, after seeing firsthand in Google Cloud and working with Telcos, is that much of the Telco infrastructure, particularly in the network domain, is not well-suited for public cloud hosting. This doesn't mean it isn't cloud-ready but rather that it's not an ideal candidate for public cloud deployment. While Telcos can benefit from a microservices architecture, they don’t necessarily need to reside in a public cloud environment. Applications such as enterprise IT, portals, analytics, and even BSS workloads are better suited for the public cloud. However, the majority of Telco workloads are network-related and do not perform optimally in a public cloud setting.

Jeffrey DeCoux

Chairman @ Autonomy Institute | Industry 4.0 Fellow: Building Intelligent Infrastructure Economic Zones ARPA-I

1 个月

Great article Geoff Hollingworth. As many have said, Data Gravity is moving to the location of the Experience. NextG Wireless will require INTELLIGENT INFRASTRUCTURE. Inferencing will require INTELLIGENT INFRASTRUCTURE. Sovereignty will require INTELLIGENT INFRASTRUCTURE. Autonomous Systems will require INTELLIGENT INFRASTRUCTURE. Intelligent Transportation will require INTELLIGENT INFRASTRUCTURE. Intelligent Infrastructure Economic Zones (I2EZ)?touch the day-to-day life of each of our fellow citizens, and its deployment is crucial to the overall competitiveness and prosperity of our country. Autonomy Institute https://www.dhirubhai.net/posts/jeffrey-decoux_infrastructure-future-transportation-activity-7251659157685063683-PKA9

Jim Carey

Software Networking and Automation Leader

1 个月

Public Cloud vs Private deployment is going to vary by application usage patterns, by application lifecycle stage (experimental vs high-scale production as one example) and probably by a mess of other characteristics. My view is the main take-away here is that a sane cloud strategy includes multi-cloud flexibility so that workloads and applications can easily be placed where they can satisfy the intended user community at optimal costs for the business. If that flexibility of deployment is maintained, the rest becomes a matter of analysis and intent.

Matt Trifiro

Storyteller, Brand Builder, Contrarian Marketer. Not afraid to poke the bear ????

1 个月

Also, let's be clear on the "83% of enterprises are planning to move workloads back to private cloud" 1. Statements of intent are rarely realistic 2. Of course "some" workloads will be reptraiated, but what % really. 3. What % of enterprises are planning to move new workloads to the public cloud. I would be surprised if it's less than 85%.

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