Originally posted on Data Center POST
A trio of CEO’s presented at the infra/STRUCTURE Summit 2024 in Las Vegas about trends in the managed infrastructure and cloud sector. Moderated by Philbert (“Phil”) Shih, Managing Director of Structure Research, Ben Gabler, CEO of Rocket.net; Jeremy Pease, CEO of Colohouse/Hivelocity and Warren Patterson, CEO of Summit Hosting shared leadership insights from their perspectives leading managed services and colocation and cloud infrastructure companies.
During the discussion, the panelists highlighted several key factors driving the trend of cloud repatriation. Rising public cloud costs, increasing complexity, compliance requirements, and a lack of quality customer service from hyperscale providers were all cited as significant contributors. They noted that customers are increasingly turning to managed infrastructure providers for better performance, reliability, and cost savings, which are often more challenging to achieve in the public cloud environment.
More specifically, Ben Gabler commented that he sees a “public cloud exodus” driven by rising public cloud costs, “noisy neighbor syndrome”, and the availability of dedicated servers and private cloud options that offer more flexibility and cost savings.
Whereas Jeremy Pease agreed that there is a big piece of cloud repatriation happening, citing the “3Cs” identified at the Broadcom Summit – cost, complexity, and compliance. Pease adds a 4th “C” – customer service – noting the lack of quality support from the hyperscale providers.
Warren Madison chiming in with his shared optimism about the repatriation trend, noting that it was a “contrarian” view a couple years ago that is now playing out. Madison also doubled-down on Pease’s comments regarding customer service, agreeing that it can be a key differentiator.
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