Companies have begun removing their data from cloud storage solutions in a trend called cloud repatriation, moving their cloud-based workloads to on-site infrastructures like enterprise data centers, colocation providers, and managed service providers. Let’s talk about why these companies have left cloud storage solutions behind, how each storage system works, and the pros and cons of each.

Why are companies moving away from cloud storage?

Citrix, a unit of Cloud Software Group, conducted a study asking businesses about their experience with the cloud. Among the 350 IT leaders interviewed for the study, 94% reported involvement with partial or full cloud repatriation. This leads us to wonder: why are companies moving away from cloud storage?

Cloud storage solutions are being left behind for a multitude of reasons. The biggest of which seems to be expectations that have been left unmet by virtual private server (VPS) providers. The study references performance issues, compatibility problems, service downtime, and scalability as some of the top reasons why organizations are moving away from cloud storage. It also mentions security concerns and unexpected costs. 


While many businesses are moving away from cloud storage solutions because of performance issues, compatibility problems, or service downtime, there are also security concerns. Reportedly, in 2024, 45% of data breaches are from the cloud. Surveys also show that at least  80% of companies have had one or more cloud security breaches in the last year. These percentages have increased in recent years due to multiple problems:

Unauthorized Access

Cyber criminals gain access to important and confidential information through schemes like phishing emails or malware. Cloud systems must be used with security measures like intrusion alerts, firewalls, and multi-factor authentication to protect your data.


Even if you are using cloud storage options, you must still configure your cloud infrastructure to prevent gaps in your security. Misconfiguration can lead to vulnerabilities such as: leaving ports open, out of date firmware, unencrypted data, and poor access control policies.

Human Error

Studies report that between 88% and 95% of data breaches are due to human error. These errors are typically due to both a lack of expertise  and lack of education in VPS users.

Data Breaches

No business is free from the threat of security breaches. Here are a few memorable examples:

Cloud Storage vs On-Site Storage

Cloud storage solutions offer a cloud server or VPS provider to store your business’ data, who then handles infrastructure management. They take care of maintenance and updates while your business prioritizes its primary function. Cloud storage offers remote access and centralization of data. There is shared responsibility between the provider and your business. While they manage security and maintenance, your business is responsible for securing your data, configuring controls, and overseeing services. Changes can be made simply  by contacting your service provider. Cloud storage solutions typically operate in a pay-as-you-go model, depending on your individual storage needs. VPS providers offer intrusion alerts and firewalls to keep your data safe. They also usually offer regular data backups. Cloud hosting is customizable and is often integrated with industry-specific add-ons, meaning it is user friendly if you do not have much experience in the area.

On-site storage solutions require a dedicated space for a server system, allowing them to be immediately accessible to you. On-site servers don’t require an internet connection to be accessed, though this means there is no remote access to your data. With this model, your business is responsible for all of your data. You have hands-on management capabilities and direct control. The scale of your data solutions is up to your business’ needs and limited by the amount of available physical space. On-site storage requires capital for the physical servers, upgrades, and the IT staff to manage them. There is no third-party control, and your business is responsible for countering IT threats with its own security measures. The customization of this model can be more personal. Though it requires more technical knowledge, it can be customized to fit your business’ exact needs without limitations from a third party.

Pros and Cons

Cloud Storage

✔ Up-front costs are lower. Your business is not paying for IT infrastructure, physical servers, or space
✔ The amount of storage can be adjusted and integrated quickly over the phone
The VPS provider handles security and data backups
You have remote access to your data
Technical support is provided

✖ Data recovery can be costly
✖ Storage can be limited based on availability and/or cost
There is no access to data without an internet connection
The storage solution is not compatible with every business model
Cloud storage is a common target for cyber attacks

On-Site Storage

✔ There is no third-party with access to your business’ data
✔ Your business has physical control over data and backups
Can be customized to meet your exact needs
Accessible without an internet connection
Cost-effective for smaller companies

✖ Capital investment can be costly upfront
✖ Requires a physical space in your office
Requires dedicated IT support
Longer downtime between changes or expansion
Data is only accessible on-site

What Can You Do?

Whether your business model is more compatible with cloud storage or on-site storage solutions, make sure your data is as secure and protected as it can be with effective and efficient security measures. To best protect your business and your data, we recommend working with a managed service provider like Tech Squared (that’s us!) to improve your security. Connect with us to help you take back your business’ peace of mind. We’re here to help!