For over a decade, the cloud has been touted as a solution for almost any business challenge – promising unmatched flexibility, cost efficiencies, and the power to revolutionize how organizations operate. The rapid pace of technological change and the growing need for digital transformation have added to the appeal of cloud solutions, including FinOps, to help businesses stay competitive in a market that demands faster innovation, remote work capabilities, and data-driven decision-making.
However, the anticipated benefits of the cloud are often tempered by unexpected costs and challenges. From rising operational costs as cloud usage scales, to issues surrounding data governance, latency, security risks, and vendor lock-in, organizations are realizing that a poorly managed cloud can hinder, rather than accelerate, their goals. As a result, many businesses are rethinking their IT systems and focusing on balancing the cloud with on-premises infrastructure, hybrid models and improved cost control measures – rather than relying on the cloud as a one-size-fits all solution.
When resetting cloud strategy, many businesses will consider repatriation, but the value of a robust FinOps strategy should not be overlooked. As cloud environments become more complex, managed service providers (MSPs) can work with businesses to help them manage their IT infrastructure challenges. MSPs help evaluate whether repatriation is the right move and support in managing hybrid environments that blend both cloud and on-premises infrastructure.
The Temptation of Repatriation
Repatriation, or moving data and workloads back to on-premises infrastructure, is growing as organizations seek greater control over their IT environments. Without immediate visibility and insights into deep and accurate usage and spend data, cloud costs can rise as data and user bases grow.
While repatriation can solve specific challenges, it also comes with inherent risks – and costs. Repatriating data involves more than just moving files, requiring significant upfront investments and ongoing expenses. Setting up servers, networking, and infrastructure is only the beginning. Maintaining and upgrading this setup, along with hiring specialized IT staff, can quickly drive up spend. Also, IT infrastructure technology has advanced considerably since many firms managed their own systems in the 1990s and early 2000s. Therefore, extra training or new hires will be necessary to handle modern technologies such as high-density servers, advanced security features like TPMs, and edge computing.
Security and compliance concerns can drive firms towards repatriation, but this move can be misguided, since cloud providers invest heavily in advanced security and compliance measures that are difficult and costly to replicate in-house. A company-managed data center is more susceptible to breaches and increasingly sophisticated cyber security threats, posing risks to the entire organization. Cloud providers, on the other hand, can quickly identify and neutralize threats, offering a level of protection that’s hard to match on-premises.
Repatriation also sacrifices the scalability and agility that cloud environments offer, particularly when it comes to rapid scaling to meet changing demands. This is particularly invaluable for AI workloads that need specialized hardware and computational power that cloud vendors can easily scale. Moving to physical infrastructure limits this flexibility, making it time-consuming and expensive to adapt to new business needs.
Managing IT sprawl and aligning IT spending with business goals is also harder without cloud-based centralized management, causing challenges in tracking expenditures and integrating data. This often leads to fragmentation and increased management difficulties.
The Benefits of FinOps
This is where FinOps – a collaborative, cross-functional, collaborative approach to managing cloud financials – can bring opportunities for innovation and growth, especially with the support of an MSP like Surveil. Rather than abandoning the cloud altogether, a well-executed FinOps strategy, focused on optimizing cloud costs and maximizing business value, can elevate the cloud’s potential and boost operational efficiency to enhance overall ROI. Research from The FinOps Foundation reveals that businesses that have adopted a successful FinOps strategy see up to 25% improvement in resource allocation, allowing companies to scale more efficiently and focus IT budgets on innovation rather than runaway cloud expenses.
A successful FinOps strategy can provide organizations with:
- Real-time monitoring tools to optimize costs and prevent unexpected expenses.
- Enhanced security and compliance through continuous updates and expert management, offering protection that’s hard to replicate on-premises.
- Scalability which allows quick resource adjustments, maintaining cash flow and reducing costs.
- Support for innovation and collaboration which accelerates product development and teamwork, letting finance teams focus on growth and ROI.
While the temptation to repatriate data may be strong, the cloud’s scalability, cost management tools, and enhanced visibility can be optimized by FinOps. With a FinOps strategy tailored to an organization’s aims, supported by MSPs, it’s possible to make cost efficiencies, maintain financial agility, and improve operational efficiency. MSPs play a vital role by offering expertise in cloud management to ensure that FinOps initiatives are fully leveraged. Together, FinOps and MSPs enable better financial decision-making for 2025 and beyond.
Driving FinOps Success with Surveil
Surveil has secured the prestigious certification, awarded by the FinOps Foundation, which underscores Surveil’s dedication to financial transparency and optimization. It empowers partners and customers to make informed decisions and manage cloud resources with precision, driving significant business benefits.
Leveraging FinOps Certified Platforms like Surveil can further enhance the effectiveness of FinOps practices. Surveil provides deep, actionable insights that gives you maximum visibility and transparency into your entire IT estate – exactly what is required for a successful execution of a FinOps strategy. By integrating these elements, organizations can transform their cloud management practices into cost-effective, high-value operations.
Start your FinOps journey today and embrace the future of financial operations in the cloud. With the right strategies and tools, you can achieve financial efficiency, accountability, and sustainable growth. Whether you’re implementing FinOps for the first time or refining your existing practices, remember that continuous improvement and adaptability are key to long-term success.
Learn more about how we untangle complexity and optimize costs in our FinOps blog series:
Azure FinOps Mastery: Unlocking Cost Efficiency and Accountability
Microsoft 365 FinOps: Boosting Efficiency and Cutting Costs
Multi-cloud FinOps: Best Practices for Seamless Cost Management
FinOps for AI: Strategies for Cost-Effective AI Deployments
FinOps in the Hybrid Work Era: Achieving Cost Efficiency and Accountability