Why More Businesses Are Moving On From ‘Cloud First’
For over a decade, “cloud first strategy” was the default IT approach. Move fast, lift and shift, modernise everything. But in 2025, the reality has caught up and many organisations are hitting pause. The narrative is changing. It’s no longer about being cloud first. It’s about being cloud appropriate.
From sovereignty concerns to escalating costs, organisations are questioning whether full cloud adoption is still the right move. And for many, the answer is no.
Cloud Isn’t Broken. But Blind Commitment Is
Cloud still plays an important role. For scale, flexibility and innovation, public cloud remains a powerful tool. But it’s become clear that not every workload belongs there — and a cloud first strategy doesn’t guarantee success.
Many organisations committed to a cloud first strategy are now struggling to see meaningful return on investment. What was once marketed as a way to reduce infrastructure costs and increase agility has, for some, delivered the opposite due to a rise in public cloud costs, driven by inflation, energy prices and the surge in demand for compute-heavy workloads like AI. At the same time, legacy systems, compliance restrictions and performance demands don’t simply disappear with migration.
Add to that the issue of rigid contracts, where businesses are tied to minimum capacity commitments they can’t scale down, and it’s no surprise cloud spend is ballooning without clear gains. The result? Unused resources, unnecessary expense and poor ROI.
Cloud wastage is a growing concern. It happens when organisations overestimate their needs, provision more than they use, or simply lack the visibility to manage consumption effectively. Unlike on-premise infrastructure, public cloud spend doesn’t pause when workloads slow down.
Security, Sovereignty and Reality Checks
With increasing focus on data sovereignty, the idea of keeping data within specific jurisdictions is becoming more important. Hybrid cloud allows organisations to maintain control over sensitive data in on-premise or private environments while still benefiting from public cloud for other workloads.
Security is also a major factor. A hybrid cloud approach enables a more controlled environment, especially for organisations in regulated sectors or those dealing with critical infrastructure.
Rising Public Cloud Costs Are Forcing Reassessment
The reality of cloud economics is setting in. As prices climb and ROI plateaus, many organisations are stepping back to rethink long-term strategy. It’s no longer about chasing scale at any cost, it’s about gaining control.
Hybrid cloud offers that control. Rather than being locked into rigid contracts or escalating monthly bills, businesses can decide where workloads sit based on performance, security and budget. The gap between public cloud and on-premise isn’t just about cost, it’s about predictability, governance and flexibility.
More leaders are recognising that hybrid doesn’t mean compromise. It means putting workloads where they make sense, not just where the hype says they should go.
Cloud Fit Over Cloud First
There’s no longer a one-size-fits-all approach. “Cloud smart” or “cloud fit” thinking is gaining ground — prioritising flexibility, control and performance over blanket policies. Hybrid cloud gives you the freedom to combine public, private and on-premise infrastructure, supporting transformation at a pace that suits your business, not one dictated by vendor trends.
At Tecnica, we help organisations navigate their options and build a cloud strategy that delivers meaningful value. Whether you’re facing sovereignty restrictions, rising costs or legacy challenges, we’ll work with you to determine what stays on-premise, what moves to the cloud, and how to connect it all securely and efficiently.
If your cloud first strategy is no longer delivering results, or the rise in public cloud costs is becoming unsustainable, it might be time to rethink your infrastructure mix.
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