In the shadow of AI, has cloud peaked? This survey claims more businesses are moving away from cloud computing to dedicated servers

• Study finds 42% of IT professionals moved workloads from the cloud back to dedicated in just one year
• Nearly half of IT teams faced surprise cloud costs of between $5,000 and $25,000
• Dedicated servers dominate in government, finance, and IT, where uptime and compliance are critical

The growing popularity of cloud infrastructure hasn’t erased the need for traditional setups.

New research from Liquid Web has suggested dedicated servers are not only holding steady but gaining traction in certain enterprise circles.

Despite the narrative of ubiquitous cloud dominance, 86% of IT professionals surveyed reported their organizations still rely on dedicated servers, a striking figure in an age supposedly defined by flexibility and abstraction.

Why dedicated servers still matter

Dedicated infrastructure appears to be thriving across a wide range of industries, particularly where regulatory oversight and data control are non-negotiable.

Government bodies showed the highest adoption at 93%, closely followed by IT and finance at 91% and 90%, respectively.

Even smaller organizations are making use of dedicated environments, with 68% of microbusinesses reportedly using them.

Nearly half (42%) of respondents said they had migrated workloads away from public cloud services over the past year, often in response to concerns over compliance, security, or rising costs.

A majority of respondents, 55%, pointed to the need for full control and customization as their top rationale for sticking with dedicated hardware.

Others highlighted network performance, predictable pricing, and physical security as driving factors.

“IT professionals migrating workloads back from public cloud to dedicated environments underscores a deliberate strategy to reclaim control, customization, and predictable costs,” said Ryan MacDonald, CTO at Liquid Web.

“Dedicated servers provide the control, performance, and security that IT leaders need to build future-proof architectures.”

There are concerns around cloud efficiency, and nearly half of IT professionals reported encountering unexpected cloud-related expenses, typically ranging between $5,000 and $25,000.

Additionally, 32% believe their current cloud infrastructure budget is being wasted on features or capacity that are never fully used.

This disillusionment complicates the perception of cloud as the best web hosting solution, at least for all use cases.

It’s clear that dedicated servers are not simply relics of a bygone era, and they continue to serve roles in the best cloud hosting strategies by offering physical, isolated environments for sensitive data and performance-intensive workloads.

For future outlook, 45% of IT professionals predicted that dedicated servers will only grow in importance by 2030, with 53% calling them essential, but 13% saw them as obsolete.

There’s a growing sentiment among professionals that cloud infrastructure isn’t always synonymous with innovation.

“They think everything is in ‘the cloud’ now and don’t realize that cloud often is someone else’s dedicated server,” one Gen Z respondent said.

This echoes the broader view that even the best dedicated server setups still underpin much of what is marketed as cloud.

For many organizations, the cloud may not be the final destination; it’s just part of a more nuanced infrastructure journey.

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