While some companies will run their own data centers, most companies will use the cloud. It's the age-old trade-off of CAPEX vs. OPEX, but the convenience and flexibility come at a premium. I usually call this the cloud tax.

The cloud tax usually eats into margins – especially true the closer your service is to an underlying cloud primitive (the case for repatriation). But there are other interesting downstream effects of the cloud tax on how we buy, run, and architect software. A few implications: