For nearly two decades, organizations have steadily migrated workloads to the cloud, often adopting cloud-first strategies. While a recent trend shows some companies reversing course and bringing data back on-premises, many chief information officers remain steadfast in their commitment to cloud environments. A new report indicates that 21% of organizations have repatriated workloads, citing concerns around cost, security, and reliability. However, leading CIOs argue that the cloud, when properly managed, remains the optimal environment for modern applications – particularly those leveraging artificial intelligence.
The 2025 State of the Cloud Report from Flexera, an IT management software provider, highlights this shift, revealing that cost optimization is now the top metric for assessing cloud progress, increasing from 65% to 87% among respondents. Despite the rise in repatriation, the report underscores the continued dominance of Amazon Web Services (AWS) and Microsoft Azure in the cloud market. This suggests that while challenges exist, the overall trajectory remains toward increased cloud adoption, especially as organizations seek to harness the power of emerging technologies.
To understand why some leaders are resisting the pull back to on-premise infrastructure, we spoke with two CIOs about their experiences. The question posed was simple: “What workload would you not move to the cloud again if you were starting over today?” The answer, surprisingly, was none.
Staying the Course: Why These CIOs Aren’t Looking Back
Josh Hamit, senior vice president and CIO at Altra Federal Credit Union and a member of the ISACA Emerging Trends Working Group, explained that his organization has taken a deliberate, gradual approach to cloud migration. “I have been pondering whether we have moved any workloads into the cloud that we have later regretted, and I honestly cannot think of anything that stands out,” Hamit said. “That is probably more a result of our cloud strategy taking a gradual approach versus going all-in.”
Hamit emphasized the importance of partnering with experienced cloud providers. “We’ve been very deliberate in working with experienced partners that have helped us navigate migrations,” he noted, specifically mentioning leveraging Microsoft cloud services like SharePoint Online, OneDrive, and Fabric. These partnerships have included implementing Microsoft Purview for data classification and data loss prevention, contributing to a more stable and secure cloud environment. He acknowledged that some critical workloads initially weren’t fully supported in the cloud, requiring vendors to adapt their platforms for cloud compatibility, but sees significant progress in this area. He anticipates continued expansion of Altra Federal Credit Union’s cloud footprint in 2026 and beyond.
Sue Bergamo, a 25-year IT and cybersecurity leader now providing fractional CIO and CISO services through BTE Partners and a trustee with the Boston chapter of the Society for Information Management, offered an even more emphatic endorsement of the cloud. “From my vantage point as a CIO and cloud architect, I would move every workload to the cloud unless it was something seriously top secret,” Bergamo stated. “I love everything about the cloud: the enormity of it, the diversity of it, the architecture. It really is the largest data center in the world.”
Security and Scalability: Key Benefits of a Cloud-First Approach
Bergamo highlighted the security advantages of a well-configured cloud environment. “Once you know how it works, it’s no less secure or no more secure than an on-prem environment,” she explained. “You’ve got public cloud environments that big companies like Microsoft or Amazon are protecting and then you have your environment within that environment that your company is protecting. So, it’s almost like a double layer of security as long as you’re doing it the right way.” She stressed the need for skilled architects to properly set up and configure cloud environments, mirroring the requirements for on-premise infrastructure.
Both CIOs underscored the importance of proper configuration to avoid common pitfalls like latency and unexpected costs. Bergamo explained that cloud environments scale based on workload demands, potentially leading to overage charges if not managed effectively. However, she pointed out that Here’s analogous to the need to purchase additional hardware in an on-premise setting when capacity is exceeded. Hamit added that the scalability and speed offered by the cloud are crucial for agility, allowing organizations to quickly adapt to changing business needs. He noted that cloud is “where innovation is happening”, with capabilities directly tied to AI being particularly difficult to replicate on-premise.
The Flexera report also noted that public cloud adoption continues to accelerate, with 33% of organizations spending more than $12 million per year on cloud services. This demonstrates a continued investment in cloud technologies despite the challenges of cost management and security.
Looking Ahead: The Future of Cloud Adoption
While cost optimization and security remain paramount concerns, the perspectives of these CIOs suggest that the benefits of cloud computing – scalability, innovation, and access to cutting-edge technologies like AI – continue to outweigh the risks for many organizations. The key appears to be a strategic, well-planned approach to cloud migration, coupled with experienced partnerships and a commitment to ongoing management and optimization. As cloud providers continue to mature their offerings and address security concerns, the trend toward cloud adoption is likely to continue, shaping the future of IT infrastructure for years to reach.
What are your thoughts on the future of cloud computing? Share your insights in the comments below.
