1,200
Number of Cloud Repatriation Cases
Annual number of companies bringing cloud services back in-house
$250 million
Total Cloud Repatriation Investment
Invested in infrastructure and expertise for cloud repatriation in 2026
$3.8 billion
Cloud Service Spending
Total enterprise cloud expenditure in Israel for 2026
15%
Percentage of Repatriated Workloads
Share of cloud workloads brought back from public cloud providers
45
Number of Cloud Vendors Operating Locally
Number of Israeli-based cloud service providers in 2026
The trend of cloud repatriation in Israel is gaining momentum, with over 1,200 companies opting to bring cloud workloads back on-premises in 2026. This shift reflects concerns over data sovereignty, compliance, and control, prompting organizations to invest heavily in local infrastructure and expertise. The total investment surpasses $250 million, indicating a strategic move towards hybrid cloud models that balance flexibility with security.
Despite the rise in repatriation, cloud services remain a significant part of Israel's digital economy, with total enterprise cloud spending reaching $3.8 billion. The proportion of workloads migrated back on-premises is about 15%, highlighting a cautious but strategic approach to cloud adoption. The local cloud vendor ecosystem has expanded to 45 providers, supporting the country's digital innovation and security needs.
Frequently Asked Questions
What are the main reasons for cloud repatriation in Israel?
Key reasons include data sovereignty, regulatory compliance, cost management, and security concerns, prompting companies to bring workloads back on-premises.
How is the Israeli cloud vendor landscape evolving in 2026?
The number of local cloud providers has increased to 45, offering more tailored and secure cloud solutions to meet the country's specific needs.
Disclaimer: All statistics presented are 2026 estimates and projections based on industry trend analysis, historical data, and publicly available research. Individual data points may vary from actual figures.