The basic idea behind cloud migration was to lower operating costs and remove the need for dedicated on-premises services.
As it turns out, in 2025 that trend is reversing somewhat. While public cloud adoption has dominated enterprise IT strategy for the past decade, new data suggests the pendulum may be swinging toward a more nuanced, workload-specific approach to infrastructure planning.
A recent survey from Liquid Web of 1,000+ IT professionals reveals significant gaps between cloud marketing promises and operational realities. The data indicates that many organizations are reassessing their infrastructure strategies based on actual production experience rather than theoretical benefits.
Key Survey Findings
The Liquid Web survey revealed the following trends:
86% of IT professionals currently use dedicated servers in their infrastructure stack.
55% cite full control/customization as the primary driver for choosing dedicated over cloud.
53% view dedicated servers as essential for their current operations.
45% expect dedicated server importance to grow by 2030.
“The greatest surprise was that 42% of IT pros said they were migrating workloads back from public cloud to dedicated servers,” Ryan MacDonald, chief technology officer at Liquid Web, told ITPro Today. “This large-scale reversal clearly indicates that cloud isn’t always the endgame for infrastructure.”
Why IT Teams Are Abandoning the Cloud
The motivations behind this reverse migration are telling.
When asked about their primary reasons for choosing dedicated infrastructure over cloud, 55% of IT professionals cited full control and customization as the top factor. Performance, compliance requirements, and predictable pricing rounded out the primary drivers.
The study provides some clear clues on what is pushing organizations back to dedicated environments.
“We discovered that compliance, variability in performance, and loss of control were the leading drivers of cloud repatriation,” MacDonald said. “Companies dealing with sensitive data, whether for AI, healthcare, or financial systems, came to the realization that shared cloud environments could not satisfy their uptime, security, or audit needs.”
This aligns with the study’s findings about unexpected costs. Nearly half of IT professionals (47%) reported facing surprise expenses related to their infrastructure, with most falling in the $5,000 to $25,000 range. Additionally, 32% believe their organization wastes cloud spending on unused features or excess capacity, a problem that doesn’t exist with dedicated servers’ predictable pricing models.
The Communication Challenge
One of the study’s most concerning findings relates to organizational alignment. Seventy percent of IT professionals believe executive leadership underestimates the role dedicated servers play in modern tech stacks, while 31% don’t feel confident explaining infrastructure choices to nontechnical leadership.
The dedicated servers driving the reverse migration aren’t the cumbersome, inflexible systems of the past.
“Today’s dedicated servers aren’t what they once were,” MacDonald said. “Thanks to innovations such as bare metal automation, hybrid orchestration, and composable infrastructure, dedicated environments now provide cloud-like agility with enterprise-level control.”
This modernization addresses one of the study’s key findings about improvement priorities. When asked what they’d most like to enhance about dedicated servers, 25% of respondents pointed to easier scaling, which historically is a major advantage of cloud platforms.
Smart Economics: When Dedicated Makes Financial Sense
The cost equation between cloud and dedicated infrastructure is more nuanced than many organizations realize.
“One of the most effective ways is to know workload fit,” MacDonald said. “Dedicated servers provide predictable pricing and no overage fees or underutilized capacity, thus making them a better long-term investment for stable or compliance-driven workloads.”
The study supports this perspective, with 32% of respondents agreeing that their cloud infrastructure budget is wasted on underused features and excess capacity.
Far from being a legacy technology, dedicated servers appear positioned for growth. More than half of IT professionals (53%) still consider dedicated servers essential, and 45% believe their importance will increase by 2030. Only 13% view them as a dying technology.