The Cloud Reset: A Smarter Way to Cloud?

Tiago Valverde

The cloud first mantra seems to be slowing down.

When AWS and other providers first arrived, everyone rushed to migrate everything to public cloud environments. But lately, more companies are shifting to a hybrid strategy, blending public and private cloud infrastructure. We're no longer stuck in a "public vs private" debate.

A new report by Broadcom, the Private Cloud Outlook 2025, reflects on this shift. It found that 93% of businesses are now purposely balancing public and private cloud usage. More importantly, many plan to build new workloads on private cloud or on-premises infrastructure. The term "repatriation" - bringing workloads back from the cloud, is gaining real momentum.

Why the Shift?

1. Cost Efficient

Public cloud was once the cheaper option, but not anymore. Hardware prices have continued to drop, but public cloud prices have not. In fact, AWS is reportedly operating at a really profit margin, according to DHH on Lex Fridman's Podcast. That realization led him to migrate some of the Basecamp and Hey.com systems to private infrastructure, saving money while gaining more control.

2. Complexity

Public cloud promised simplicity, but for many, it has delivered the opposite over time. Constant platform updates, scattered services, and evolving best practices that make public cloud management a never ending target. Integration and governance challenges are pushing businesses and teams to seek alternatives.

3. Security and Compliance

Private cloud is no longer tied to legacy systems. For companies handling sensitive data, especially with the rise of AI, LLMs and growing cybersecurity risks, owning more of you infrastructure is becoming strategic advantage.

There Are Some Tradeoffs

Going hybrid or private comes with its own challenges:

  • You need to brush up on your networking, server and hardware fundamentals.
  • You many need to hire specialists or work with managed hosting vendors.
  • Infrastructure as Code (IaC), monitoring and automation tools all become more critical. The upside: many of these tools were built for the cloud and now can be reused in private or on-premise environments.

My Take: It Might Be Home Lab Time

Personally, this shift makes me want to level up my home lab. Go beyond the old Raspberry PI media server and get serious about managing infrastructure again. It feels like a good time to experiment, re-learn some fundamentals, and prep for a world that values intentional architecture over defaulting to "just use the cloud".

This urge has been reinforced by DHH's journey to re-discover the affordability and control of on-premise setups. His post on cheap, powerful mini PCs reminds us that the hardware barrier is lower than ever.

It also reminds me of Derek Sivers' take on tech independence, which he spoke about in his podcast with Tim Ferris. The idea of being more intentional and self-reliant with our digital tools.

A Mindset Shift

Job cloud reset isn't about going backwards. Its about choosing the right tool for the job and not overpaying or overcomplicating by default.

Your tech is no longer just a rental car. It's becoming a meticulously tailored garage.

Sure, you might rent a sports car for a one-off trip. But for daily commute and long-term storage? You will want a reliable, well-tuned machine you own and control.