Cloud computing has long been heralded as the default path for enterprise IT, with public cloud vendors promising limitless scalability and transformational efficiencies. However, recent data reveals a significant shift in this narrative: Organizations are becoming more strategic in their technology investments, moving away from a “cloud-first” mandate and instead toward a value-driven mix of public cloud, private infrastructure, and alternative providers such as colocation vendors. According to some reports, public cloud repatriation could be among the most important considerations that organizations continue to evaluate in 2026, as CIOs and IT leaders revisit where their workloads should ideally be stored.1
Several factors have been driving this change, notably the rising fees and total cost of ownership for many workloads in public clouds paired with the accessible prices of enterprise hardware that makes locally-managed private cloud and on-premises solutions an attractive option. Additionally, newer options such as special-purpose clouds, sovereign clouds, colocation facilities, and managed-service providers, are emerging as compelling alternatives for businesses.
This evolving landscape enables enterprises to better control their storage costs, storage tiering performance, and compliance practices. As global businesses seek to optimize their IT portfolios, the default to inevitable, “cloud-native” and all-public cloud adoption is being replaced by a more nuanced, pragmatic approach focused on flexibility, business requirements, and maximizing long-term value.
Given the ongoing surge in enterprise data driven by the growth in connected sensors, generative AI, and worker-generated content, budgets and resources for storage are getting a closer look.
To manage today’s rapid data growth, CIOs, CTOs, and IT professionals must do more than simply increase raw storage capacity; they must strategically weigh and balance their need for high performance and massive scalability with cost-efficiency. In addition to these core priorities, technology executives with budget authority and P&L oversight must deliver multipoint access and robust security, all while maintaining flexibility and keeping costs.
To achieve this, many enterprises are revisiting their dedication to being cloud-native and cloud-first, approaches that may have pushed their costs beyond what was initially expected. Indeed, many enterprises are embracing hybrid cloud as part of an exploratory data repatriation effort.
For the past several years, many organizations of various sizes have been rebalancing their storage footprints, moving critical data from the public cloud to their own data centers and to self-managed third-party colocation facilities. This has been done to safeguard proprietary information, to help meet data security and regulatory requirements such as GDPR, and to address unforeseen cost pressure that likely surfaced during the aforementioned cloud-first adoption efforts.2
Of course, on-premises data center storage and local storage at the edge should ideally leverage the highest-quality, most capable hard drives. WD’s enterprise-class hard drives are an ideal building block of hybrid storage architectures that are part of an enterprise data repatriation effort as they deliver reliable, high-performance hybrid cloud storage.