On 7th January 2019, Bitfinex announced that iFinex was switching away from the AWS Public cloud. Probably the first major announcement of disengagement with the public cloud. on 23 August 2019, CEO of Binance tweeted on the issue with AWS stating "AWS is having an issue, mostly with caching services, affecting some users globally. We are working with them and monitoring the situation closely". Kucoin had also tweeted about the interruptions due to AWS Malfunction. It’s true that the initial hype around public cloud is slowly fizzling out, as reality sets in, companies are slowly realizing disenchantment with the public cloud.
Ask around, and it won’t be hard to find companies that took bold steps toward adopting public cloud only to backtrack later when costs spiraled, connections stalled, providers crashed or for myriad other reasons. Other issues observed were high support cost, underwhelming performance, project failures, complex structure, lack of required functionalities, regulations and data sovereignty. There had been a growing realization that the cost benefits of public cloud services begin to dissipate as scale increases. "Once you’re running at a high utilization rate, the economics quickly flip and they don’t make commercial sense."
Why are we hearing such discontent now? In part, it’s user maturity curve. With more understanding of the issues and increasing numbers of providers and projects offering viable solutions, including big players, the paradigm shift is finally happening. With such prominent corporations like Binance, BitFinex and KuKoin more public announcements about challenges faced and migration are only expected to grow further.
Mr. Micheal C of IndSoft.net, which specializes in IT infrastructure for Blockchain companies, confirmed the list of prospects actively seeking moving back from the public cloud is increasing, With custom configurations and bare metal services configured as per requirements, We are able to guarantee a minimum of 12 % – 40 % savings on their monthly public cloud billing. Other service providers voice the same opinion, though not all have been ready to commit on record.