Here's some good news for the beleaguered hardware industry getting killed by the cloud

There’s been lots of talk about the cloud taking over on-premise servers in recent years, as companies move their data online instead of storing it on their own hardware servers.

That may be the clear long-term trend, but the cloud doesn’t seem to be the answer for every company — at least for now.

According to a CIO survey by financial firm Pacific Crest, 62% of the respondents said they returned to on-premise servers, after trying things on the cloud. Pacific Crest calls this a “boomerang effect,” in which companies realise the cloud isn’t a good fit yet and bring back their workloads to traditional on-premise datacenters.

“Surprisingly, 62% have brought workloads back from the cloud, supporting the idea that cloud doesn’t work for everything and there is a need for on-premise,” the report says.

As seen in the chart above, the need for on-premise is more apparent among tech companies and large enterprises. That may be due to the various security and compliance issues they need to deal with, but it may also be a reflection of how big industry transitions like these take a long time to complete.

For example, AWS, the de facto leader in the cloud computing space, recently struck a partnership with VMware to offer a “hybrid” solution, showing there’s still huge demand for on-premise from companies hesitant to go all cloud.

“We’re going through a gigantic transition right now from people running everything on-premise to people running mostly in the cloud, but that transition is going to take a long time,” AWS CEO Andy Jassy told Business Insider after announcing the VMware partnership.

Still, the Pacific Crest report said there’s no denying that cloud adoption is an on-going trend and will continue to benefit the largest public cloud vendors like AWS, Microsoft Azure, and Google.

Disclosure: Jeff Bezos is an investor in Business Insider through hispersonal investment company Bezos Expeditions.

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