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Cloud Exit

Month
July 2025
Day
22
Source
2025/july-term.md

Definition:

Cloud Exit is the strategic process of migrating applications, data, and IT infrastructure away from cloud services back to on-premises systems or alternative cloud providers to regain control, reduce costs, or address specific business requirements.

Key Characteristics

  • Data Migration - Moving workloads out of cloud platforms
  • Cost Optimization - Reducing ongoing cloud expenses
  • Control Recovery - Regaining direct infrastructure management
  • Vendor Independence - Avoiding cloud provider lock-in

Example:

  • Basecamp(2022):
Migration: AWS → On-premises
Reason: Cost savings (~$7M over 5 years)
Result: Built own data centers, reduced operational costs
  • Spotify:
Migration: Google Cloud → Multi-cloud + On-premises
Reason: Better control over music streaming infrastructure
Result: Hybrid approach with custom data centers
  • Financial Institution Example:
Migration: Public Cloud → Private Cloud
Reason: Regulatory compliance and data sovereignty
Result: Enhanced security and compliance control

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