Scott Aken, CEO, Axellio, says drawbacks of cloud dependence are becoming increasingly evident.
For years, organizations across multiple industries have embraced cloud computing as a strategic move to enhance operational efficiency, scalability and data accessibility.
The cloud promised a streamlined approach to managing vast amounts of data, enabling decision-makers to access critical intelligence from anywhere.
However, as reliance on commercial cloud providers like AWS, Microsoft Azure and Google Cloud deepens, the drawbacks of cloud dependence are becoming increasingly evident.
Rising costs, multi-cloud requirements for business continuity, security vulnerabilities and operational constraints are prompting commercial enterprises and government organizations to reconsider their approach.
The Hidden Costs of Cloud Computing
One of the fundamental selling points of cloud computing has been its perceived cost efficiency. Yet, many organizations are finding that cloud pricing models create significant financial strain. With data retrieval fees, inter-zone transfer fees and multiple storage tiers, understanding cloud costs can be challenging and lead to significant unexpected expenses.
For enterprises managing large datasets, particularly in industries such as finance, healthcare and manufacturing, these costs add up quickly.
Military agencies, which rely on real-time intelligence and surveillance data, face similar cost constraints, as cloud-based models require extensive data transfers across multiple regions.
A mission-critical system that relies on cloud access for real-time data processing might suddenly face ballooning expenses due to data transfer charges between regions.
Companies and agencies that initially moved workloads to the cloud for cost savings are now reassessing whether those savings materialized – or if they have, in fact, been outpaced by mounting operational expenses.
Moreover, many organizations are locked into vendor pricing structures that make it difficult to predict long-term financial commitments. Cloud providers often offer lower upfront costs but impose significant fees for data movement and retrieval, particularly when enterprises and defense agencies need to migrate workloads between cloud environments or reintegrate them into on-premises systems.
The challenges in understanding cloud pricing from month-to-month are causing frustration among CIOs, IT leaders, and military strategists who must account for unpredictable budget increases.
Security and Operational Resilience Concerns
Beyond costs, business and government leaders are increasingly concerned about the security risks associated with cloud computing. While cloud providers invest heavily in cybersecurity, the centralized nature of cloud infrastructure makes it an attractive target for adversaries. The growing frequency of cyberattacks on commercial cloud environments raises alarm bells about potential vulnerabilities in critical operations that depend on these platforms.
Recent geopolitical tensions have also highlighted another critical risk: the vulnerability of global cloud infrastructure. Undersea cable disruptions, state-sponsored cyber campaigns and the potential for adversaries to disrupt or surveil data stored in commercial cloud environments all pose substantial risks.
Military agencies, in particular, recognize the strategic threat of placing too much reliance on cloud computing, where an adversary’s ability to compromise a cloud service provider could disrupt mission-critical operations.
Enterprises, too, are realizing the potential fallout of cloud infrastructure downtime, which could result in revenue losses, compliance violations, and service disruptions.
Furthermore, organizations must consider compliance with industry and national security policies. While cloud providers comply with many regulations, some critical workloads – especially those related to national defense – require sovereign control over data storage and processing. This is driving enterprises and military agencies to reevaluate whether public cloud models align with mission-critical security requirements.
In many cases, enterprises have had to adopt a multi-cloud approach to ensure high availability and better handle fluctuations and spikes in demand. An Edge Delta study suggests that 89% of US companies now use a multi-cloud strategy.
The Shift Toward Edge Computing
In response to these challenges, organizations are increasingly adopting edge computing solutions as a way to mitigate cloud-related risks. Edge computing decentralizes data processing, allowing information to be analyzed and stored closer to the point of collection rather than relying on distant cloud servers. This approach provides several key advantages: reduced latency and lower operational costs.
For example, in industries such as retail, financial services and healthcare, edge computing enables real-time data analysis from IoT sensors, transaction monitoring systems and connected devices without the need to send vast amounts of raw data back to a centralized cloud.
Military applications follow a similar model, where edge computing allows data from drones, autonomous systems and battlefield sensors to be processed on-site, improving responsiveness and mission reliability. If connectivity to the cloud is lost, edge-based systems can continue functioning autonomously, ensuring uninterrupted operations.
Another key benefit of edge computing is the reduction of bandwidth constraints. Many enterprises, as well as defense organizations, operate in environments with limited or unreliable network access. Instead of relying on continuous cloud connectivity, edge solutions allow for local processing and only send essential data back to central infrastructure, optimizing bandwidth usage while maintaining operational efficiency.
Balancing Cloud and Edge Strategies
While edge computing offers clear advantages, it does not render cloud computing obsolete. Instead, enterprises and government agencies are adopting hybrid models that leverage both cloud and edge computing based on business and mission needs. Sensitive, time-critical operations benefit from edge computing’s speed and security, while the cloud remains valuable for large-scale data aggregation, long-term storage, and enterprise-wide collaboration.
A hybrid model allows organizations to maximize efficiency by ensuring that critical decision-making processes occur at the edge, while cloud-based systems serve as a backup for less time-sensitive operations. This balance enables businesses and military operations to achieve cost savings without compromising performance.
This shift is not without challenges. Implementing edge solutions requires investment in specialized hardware, software and talent. Additionally, ensuring seamless integration between cloud and edge environments demands careful planning. However, for organizations seeking to optimize costs, enhance security, and maintain operational flexibility, the benefits of this approach outweigh the complexities.
Preparing for the Future
In the years ahead, organizations must take a proactive approach to infrastructure modernization. Investments in edge computing and secure hybrid cloud models will be essential to achieving operational superiority in an increasingly digital-first world. Furthermore, partnerships with technology providers that specialize in industry-specific and defense-focused computing solutions will help ensure seamless integration of advanced capabilities.
Ultimately, the future of IT infrastructure lies in striking the right balance between cloud and edge. By reassessing their reliance on commercial cloud providers and investing in resilient, decentralized architectures, commercial and government organizations can ensure they remain agile, secure, and ready for whatever challenges lie ahead.
