guides

Cloud Repatriation in 2026: What the Surveys Say and Which Customer-Data Workloads Move First

By Art Kukharenko · Published · Updated

Browse guides resources

Cloud repatriation in 2026 means moving selected workloads from public cloud back to private cloud, colocation or on-premise infrastructure; it rarely means leaving public cloud altogether. Two 2026 surveys report that 50% and 75% of respondents have already moved something back, but both come from vendors with something to sell, and IDC found only 8-9% planning full repatriation. For a customer data platform (CDP), identity graphs, consent stores, inference on personal data and long-retention event stores move first.

Who this is for: architects and data leaders deciding where customer data should run. Part of the guides hub. If you are already planning a move, pair this with the cloud exit strategy template.

What "cloud repatriation" means, and what the headline numbers measure

Repatriation is a placement decision for individual workloads, not a verdict on cloud. Most organisations that do it keep public cloud for elastic, bursty or globally distributed work and bring back steady, data-heavy or tightly regulated systems. IDC describes it as a growing trend but not a wholesale migration: most organisations move specific elements such as production data, backup and compute 3.

That distinction explains why survey headlines look contradictory. A claim that 75% have moved some workloads back and a claim that 8-9% plan full repatriation can both be true, because they measure different things.

Cloud repatriation statistics: what the surveys and case studies actually say

Scroll horizontally to compare all columns ↔

Comparison — source references are listed below
SourceDateSponsor / relationshipSampleHeadline figuresRead with care
Broadcom, Private Cloud Outlook 2026 19 Jun 2026Broadcom, which owns VMware and sells private cloud softwaren=1,80083% considering repatriation; 50% already did; 56% run or plan production AI inference on private cloud; public cloud as the primary inference environment fell from 56% to 41%; sovereignty or residency the top geopolitical factor (54%)Vendor-published
Cloudian / Centiment 2Released 2 Apr 2026; fielded Feb 2026Commissioned by Cloudian, an on-premises object storage vendorn=212 senior IT decision-makers; geography not stated89% plan to expand on-premises infrastructure within two years; 75% moved at least some workloads back in the past 24 monthsSmall sample; "at least some"
IDC (D. Saroff) 328 Oct 2024Independent analyst firmNot stated in the post8-9% plan full repatriation; close to half of cloud buyers spent more than expected in 2023; 59% expected similar overruns in 20242024 data; no sample size published in the post
37signals 4523 Jun 2023; 8 Jan 2026The company itselfOne firm2022 cloud budget US$3.2M; about US$500,000 of hardware; savings of at least US$1.5M a year projected; about 5 PB of unique objects moved off S3Self-reported, single firm
Gartner 69 Feb 2026Analyst forecastForecastSovereign cloud IaaS spending US$80B in 2026, up 35.6%; Europe up 83%Spend forecast, not a repatriation measure

Cloudian and Centiment. The survey was fielded in February 2026 among 212 senior IT decision-makers at organisations with significant public cloud use. Its drivers are consistent with the Broadcom data: 84% exceed cloud storage budgets, egress fees (46%) and premium prices for residency-compliant regions (43%) lead the cost complaints, 55% say cloud cannot consistently meet AI inference latency, and 82% call sovereignty a primary or significant driver 2. Cloudian's own framing is that this is not enterprises souring on cloud: about 30% of respondents are still expanding their cloud presence 2.

IDC. IDC is the clearest counterweight. Its survey data say only 8-9% of companies plan full repatriation, larger organisations repatriate more than smaller ones, and cost overruns are a recurring theme 3. In October 2026 IDC's European analysts argued that AI will run across public cloud and on-premises deployments, shaped by where data must reside and by power availability, and that sovereignty is moving from debate to deployment without a single definition 7.

37signals. The most detailed public cost case. The company reported a 2022 cloud budget of US$3.2M, bought about US$500,000 of Dell servers, and projected savings of at least US$1.5M a year, with an operations team that did not change in size 4. In January 2026 it described moving about 5 PB of unique data (on the order of five billion objects) off S3 in under ten days of transfer, using a negotiated 90-day window to qualify for AWS's egress-fee waiver 5. It is one firm with steady workloads and strong in-house operations skill; treat it as an existence proof, not an average.

Gartner. We found no Gartner repatriation percentage we could verify. Its 2026 sovereign cloud forecast measures spending on sovereign cloud IaaS, not workloads moving back, so treat it as a demand signal for control 6. The European Commission's own proposal adds context: EU providers' share of the European cloud market fell from 29% in 2017 to 15% in 2022, and three non-EU hyperscalers hold over 70% 8.

How to read vendor-sponsored survey numbers

Use this checklist on any repatriation statistic, including the ones above:

Why customer data moves first

Customer-data workloads share three traits that favour repatriation: they are steady rather than bursty, they hold regulated personal data, and they grow with every event. Four candidates stand out.

Scroll horizontally to compare all columns ↔

Comparison — source references are listed below
WorkloadWhy it moves earlyCheck before movingReason to stay in cloud
Identity graph and profile storeHolds the most sensitive joined data; steady read/write; exporting merge history is hard once you are locked in. See identity resolutionCan merge history, match rules and survivorship be exported and replayed?Small scale with no residency constraint
Consent and preference storeLegal source of truth; must be available to every channel; auditability matters more than elasticity. See consent withdrawal architectureLatency of suppression checks from every sending systemSingle-region, single-channel programmes
Inference on personal data (scoring, segmentation, agent-assisted analysis)Prompts and features contain PII; latency and sovereignty both bite. 55% of Cloudian respondents say cloud cannot consistently meet AI inference latency 2; see on-premise LLM deploymentGPU supply, model licences, evaluation toolingBursty experiments, non-PII prototyping
Long-retention event storeStorage and egress cost grows linearly with history; 37signals' S3 case shows the scale at which this matters 5Retention rules, replay needs, egress termsShort retention or highly variable volume

Workloads that usually stay in public cloud: elastic campaign rendering, experimentation sandboxes, edge collection close to users, and third-party SaaS destinations you do not operate. A customer data platform on AWS, Azure or GCP in your own account is often the first step, before any hardware; the complete guide to self-hosted and private-cloud platforms compares the four deployment models.

A decision framework: cost, sovereignty, latency, egress, skills

Scroll horizontally to compare all columns ↔

Comparison — source references are listed below
CriterionMove signalStay signalHow to measure
CostSteady, high utilisation (set your own threshold); bills growing faster than usagePeaky usage; heavy use of managed services you would have to rebuild3-year total cost on both sides, including staff; see the 3-year TCO model
SovereigntyResidency, DORA-style exit duties, public-sector or health rules; exposure to non-EU jurisdictionNo regulatory driver and low sensitivityMap data classes to rules; see residency by country, residency vs sovereignty and the EU cloud sovereignty framework
LatencyActivation or scoring budgets tighter than a cloud round tripUsers are global and latency is tolerantp95 from decision to channel
EgressData stays inside after the move; one-time exit cost is boundedConstant data flow to cloud-hosted destinationsGB moved per month and per exit, times your contract rate
SkillsYou already run Kubernetes, databases, backup and patching 24x7, or can buy itNo platform team and no appetite to hireHonest staffing plan

Score each criterion 0 (stay), 1 (neutral) or 2 (move) per workload. Three or more twos on a workload make it a candidate; sovereignty or latency at 2 with skills at 0 means "move to a vendor-operated private cloud" rather than "self-host".

Egress arithmetic, illustrated. Moving a 200 TB event store at an assumed US$0.05 per GB costs about US$10,000 (200,000 GB x US$0.05). The inputs are assumptions for illustration only; use your contract rate. The sharper risks are time and conditions: 37signals negotiated a 90-day window because the waiver depended on completing the move 5. Under the EU Data Act, providers of data processing services may charge only cost-based switching charges until 12 January 2027 and none after that date 9. That does not make egress free: scope, multi-cloud traffic and carve-outs are still disputed, so read the contract. Detail in EU Data Act and cloud switching.

Twelve-point repatriation readiness checklist

  • 1. Inventory customer-data workloads by data class (identity, consent, events, features, models) and jurisdiction.
  • 2. Measure steady-state versus peak demand for each; note the peak-to-median ratio.
  • 3. Compute 3-year cloud cost, including egress, support and marketplace fees.
  • 4. Cost the owned or private alternative, including people, spares, power and refresh.
  • 5. Quantify egress: volume, contract rate, waiver or credit conditions, Data Act switching terms.
  • 6. List regulatory triggers: residency, exit-plan duties, sector rules.
  • 7. Review provider-access exposure: key custody, support access, sub-processors, telemetry.
  • 8. Set latency budgets and decide where inference runs.
  • 9. Map dependencies: destinations, ESPs and APIs in the same region that break or slow down.
  • 10. Plan a parallel run with dual writes, replay and reconciliation of identity and consent state.
  • 11. Check commitments: committed spend, credits, notice periods, termination timing.
  • 12. Define success metrics and a stop rule, and write down what deliberately stays in cloud.

The exit strategy template turns items 5 to 11 into a document you can test.


Frequently asked questions

What is cloud repatriation?

Moving a workload from public cloud to private cloud, colocation or on-premise infrastructure. It is usually partial: backup, a data store or inference moves while elastic and edge work stays. Reasons include cost predictability, sovereignty, latency and AI data control.

How many companies are repatriating workloads in 2026?

It depends on the definition. Cloudian's commissioned survey says 75% moved at least some workloads back in 24 months, Broadcom's says 50% have repatriated, and IDC found 8-9% planning full repatriation. None measures the share of all workloads that has moved 123.

What does Gartner say about cloud repatriation?

We found no verifiable Gartner repatriation percentage. Gartner's February 2026 forecast puts sovereign cloud IaaS spending at US$80B in 2026, up 35.6%, which shows demand for control but is a spend forecast, not a repatriation count 6.

Which workloads should be repatriated first?

Steady, data-heavy, regulated ones: identity graphs, consent stores, inference on personal data and long-retention event stores. Keep bursty, elastic and edge workloads in public cloud unless a rule forces otherwise.

Is cloud repatriation about data sovereignty?

Partly. Cloudian respondents rank sovereignty as a primary or significant driver (82%) and Broadcom's top geopolitical factor is sovereignty or residency (54%), but Cloudian respondents also rank AI infrastructure (57%) and cost predictability (54%) among their top priorities 2. Residency alone does not settle jurisdiction; see sovereign customer data platforms.

Will repatriation save money?

Sometimes. 37signals projected savings of at least US$1.5M a year on a US$3.2M cloud budget 4, but it has steady workloads and skilled operators. Bursty workloads and teams without operations capacity often do not save.

Does repatriation mean leaving the cloud?

No. Most repatriation is partial, which leaves a hybrid estate: owned or private infrastructure for sensitive, steady systems and public cloud for elasticity. A customer-operated deployment in your own cloud account is a legitimate middle step.

Sources

  1. Broadcom, Private Cloud Outlook 2026, 9 June 2026 (n=1,800) - Open source
  2. Cloudian, Cloud Data Repatriation Survey (fielded by Centiment, February 2026; n=212; commissioned by Cloudian), 2 April 2026 - Open source
  3. IDC, "Storm Clouds Ahead: Missed Expectations in Cloud Computing", Daniel Saroff, 28 October 2024 - Open source
  4. DHH, "We have left the cloud", 37signals, 23 June 2023 - Open source
  5. Jeremy Daer, "Moving Mountains of Data off S3", 37signals Dev, 8 January 2026 - Open source
  6. Gartner press release, 9 February 2026, sovereign cloud IaaS forecast - Open source
  7. IDC, "European AI Stack: Will AI Live in the Public Cloud Alone?", 15 October 2026 - Open source
  8. European Commission, proposal for a Cloud and AI Development Act, COM(2026) 502, explanatory memorandum, 3 June 2026 - Open source
  9. Regulation (EU) 2023/2854 (Data Act), Articles 25 and 29 - Open source

Put this evaluation into practice.

Review the total cost model

This article is general information, not legal advice.

Further reading

Published: · Updated:

Publication date recorded for the approved release. Editorial updates do not establish legal approval or a customer result.

Need help?

Ask the PrivyCDP Assistant