A recent survey by Broadcom reveals that many organizations are rethinking their cloud strategies and considering a shift towards private cloud environments. According to the survey conducted with about 1,800 IT decision-makers worldwide, a significant 69% are contemplating repatriating workloads from public clouds back to private clouds, driven by a need for greater control, enhanced security, and predictable costs.
In the "Private Cloud Outlook 2025" report, Broadcom highlights a notable shift in enterprise strategies, moving from a public-cloud-first approach to a more balanced mix of both private and public clouds. In fact, 93% of respondents prefer to maintain this hybrid approach, with the focus increasingly on developing new workloads in private cloud infrastructures.
Pranshanth Shenoy, VP of product marketing at Broadcom’s VMware Cloud Foundation division, emphasized this trend by stating that private cloud is becoming the preferred platform for organizations looking for high levels of security and cost predictability, especially for modern workloads, including those related to generative AI.
The survey underscores several critical concerns that drive this transition. First, there is a strong perception of waste in public cloud spending, with 94% of respondents acknowledging some inefficiencies, and nearly half believing that over 25% of their public cloud expenditure is wasted. The findings point to a growing realization that while public cloud services initially offered agility and ease for developers, their business viability faces hurdles due to cost concerns.
Moreover, the survey results indicate that 92% of organizations trust private cloud solutions for security and compliance, and prioritize financial visibility and predictability—90% of respondents identified these attributes as significant benefits of private cloud environments.
Looking ahead, organizations are focusing on building new workloads in the cloud—53% intend to do this within three years. Despite the interest in private clouds, challenges remain. 33% of respondents noted that siloed IT teams hinder private cloud adoption, prompting 81% of organizations to restructure their teams for better collaboration and efficiency.
Skills shortages also emerge as a notable barrier, with 30% of enterprises citing a lack of in-house expertise on private cloud strategies, leading many to rely heavily on external professional services. Shenoy indicates that there is a pressing need for retraining IT teams to adapt to modern operational demands, particularly in areas like automation and orchestration.
In conclusion, the landscape of cloud computing is evolving, with a discernible shift towards private cloud solutions. As businesses seek to enhance security, control costs, and optimize their IT strategies, private cloud infrastructures are increasingly seen as viable and necessary platforms.
For further insights, you can refer to the Private Cloud Outlook 2025 report.
