How much can companies save by moving workloads back on-premise?

Savings vary by workload type and scale, but reported figures are significant. 37signals projects over $10 million in savings over five years after leaving AWS. Broadcom saved over $10 million by moving critical database workloads off public cloud. GEICO, facing over $300 million in annual cloud spend, has cut compute costs by 50% per core through its repatriation to Open Compute Project hardware.

Is cloud repatriation the same as abandoning the cloud?

No. Cloud repatriation is about strategic workload placement, not abandoning cloud entirely. Most organizations pursuing repatriation are moving to a hybrid cloud model where steady-state, data-intensive, and regulated workloads run on-premise while burst, elastic, and globally distributed workloads remain in the cloud.

How does cloud repatriation affect AI deployment?

AI is accelerating cloud repatriation because many organizations want to run AI models over proprietary data without that data leaving their security perimeter. On-premise AI delivers both better data governance and, according to Deloitte, 50% or more cost savings over three years once token volume reaches a certain threshold.

What development platforms give you deployment flexibility?

Most modern low-code platforms are cloud-only SaaS products, which means every application you build on them is locked to the vendor's cloud. m-Power, built by mrc, runs on-premise, in your cloud, or both, directly over your existing databases. You own it outright with a perpetual license and no per-user fees, so the deployment decision stays with you as requirements change.

What is the difference between SaaS and a perpetual license?

SaaS is a recurring subscription for access to software the vendor hosts. You pay monthly or annually. A perpetual license is a one-time purchase. You own it. With SaaS, you lose access when you stop paying. With a perpetual license, the software stays yours.

Why are SaaS prices increasing so fast?

SaaS pricing rose 11.4% in 2025, roughly four times the rate of general inflation. 73% of SaaS companies raised prices that year. Vendors push these increases through because switching costs are high, especially for platforms where customers have built workflows, integrations, and business processes. Many vendors also bundle AI features to justify premium pricing.

Is a perpetual license cheaper than SaaS long-term?

For development platforms and tools you plan to use for years, a perpetual license is significantly cheaper.

m-Power is a low-code development platform built by mrc. It installs on your infrastructure, connects to your existing databases, and lets your team build web applications, AI tools, reports, dashboards, and portals. mrc has been helping businesses build custom applications since 1981, with over 1,500 customers.

How does low-code platform pricing typically work?

Most low-code platforms charge per-user, per-month, with costs that scale as your team grows. Some add per-app or per-workflow charges. m-Power uses a one-time perpetual license with no user, app, or data limits, making total cost predictable from day one.

Can you avoid vendor lock-in with a low-code platform?

Yes, but it depends on the platform. Look for: code you own and can run independently, deployment on your own infrastructure, direct connection to your existing databases without migration, and no per-user pricing that penalizes growth. m-Power is built so your applications and data remain yours regardless of your relationship with the vendor.

April 2026 – mrc's Cup of Joe Blog

Q: What is cloud repatriation?

Cloud repatriation means moving workloads, applications, or data from public cloud infrastructure back to on-premise servers or private cloud environments. The main drivers: cost optimization, data sovereignty requirements, and the need for greater control over infrastructure and security.

What’s Driving Cloud Repatriation in 2026?

By Sal Stangarone / Cloud Computing

Something interesting is happening in IT departments right now. The same leaders who spent years migrating workloads to the cloud are quietly moving some of them back.

Not all of them. And, I’m not tyring to say that businesses are now rejecting the cloud or anything like that.

However, there’s a growing push for “Cloud Repatriation” because the math stopped working for certain workloads and the governance requirements changed faster than anyone expected.

In case you’re unfamiliar with the term, let’s quickly define it.

What is cloud repatriation? Cloud repatriation is the process of moving applications, data, or workloads out of a public cloud environment (like AWS, Azure, or Google Cloud) and back to on-premise infrastructure or a private cloud. It’s rarely a full cloud exit. Most often, it’s a targeted move of specific workloads where the cost, performance, or compliance profile makes more sense outside the public cloud.

If you’re an IT director or CIO watching your cloud bills climb past projections every quarter, you’ve probably at least considered it. Cloud repatriation is a strategic shift happening across industries. Let’s get into what’s driving it, why AI is accelerating the trend, and how to evaluate what belongs where in your own environment.

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What’s Driving Cloud Repatriation in 2026?Read More »

What software should NOT be SaaS?

By Sal Stangarone / software licenses

What types of business software should NOT be used on a SaaS model?

That’s something I’ve been thinking about lately as I read more and more cases of rising SaaS costs. The fact is, most businesses are paying more for their SaaS tools than they were last year. Same tools and users, just a bigger bill.

73% of SaaS companies raised prices in 2025, averaging 14.2% increases. SaaS inflation is running at roughly five times the general rate. CIOs now spend about 9% of their IT budget just absorbing price hikes on software they already have. According to Zylo’s 2025 SaaS Management Index, SaaS spending per employee hit $4,830 last year, up 21.9% from the year before.

For mid-market companies, per-employee spend jumped 40%. Gartner estimates 25% of all SaaS spend is wasted or underutilized. And 78% of CFOs say they’ve been blindsided by hidden fees or price hikes baked into their contracts.

The vendors aren’t subtle about this anymore. A few examples from the last two years:

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What software should NOT be SaaS?Read More »

Month: April 2026