Cloud strategy is undergoing a profound transformation. For years, the conversation has centered around public versus private cloud, each positioned as an opposing force. But that dichotomy is fading. Today, enterprise leaders are asking a more nuanced question: What is the right environment for each workload? And increasingly, the answer is private cloud.
Broadcom recently partnered with market research firm Illuminas to explore this shift in the inaugural Private Cloud Outlook 2025 report, an in-depth global study of 1,800 senior IT decision-makers across North America, Europe, and Asia-Pacific. The findings are clear: we are in the middle of a cloud reset, and private cloud has emerged not just as a viable option, but a strategic centerpiece.
Here’s a closer look at what the research uncovered, and why private cloud is earning its place at the center of modern enterprise strategy.
Private Cloud: From Legacy System to Workload Hub
There’s a perception that private cloud is mainly for traditional, legacy applications. That perception is now outdated.
- 53% have private cloud as their top 3-year priority for deploying new workloads
- 69% are considering repatriating workloads, and one third already have
- 84% use private cloud for both traditional enterprise apps and modern, cloud-native workloads
This isn’t a retreat—it’s a reset. A recalibration based on operational experience, security requirements, and a growing need for control in an AI-powered, data-intensive world.
Why Private Cloud, and Why Now?
Three forces are driving the rise of private cloud, and together, they tell a story of enterprises seeking greater control, confidence, and continuity in an increasingly complex IT landscape. Whether facing rising security expectations, navigating the unique demands of AI workloads, or reining in runaway public cloud costs, organizations are turning to private cloud not as a step backward, but as a strategic evolution.
Security and Compliance
Security has always been a cloud driver, but now it’s the biggest reason enterprises are moving workloads back from the public cloud.
- 92% of respondents say they trust private cloud for security and compliance.
- 66% are “very” or “extremely” concerned about public cloud compliance, and security is cited as the leading driver for workload repatriation from public cloud.
AI and Data Privacy
AI adoption is booming, but so are concerns about data privacy and sovereignty.
- 66% prefer private cloud or hybrid cloud for cloud-native applications
- 55% prefer private cloud for AI model training, tuning and inference.
Cost Predictability
Amid tighter budgets, predictability is just as critical as performance.
- 90% of enterprises value the private cloud’s financial transparency.
- Nearly half estimate more than 25% of their public cloud spend is wasted.
This data tells us that enterprises are no longer chasing “cloud for cloud’s sake.” Instead, they’re choosing models that deliver lasting value, support regulatory needs, and scale securely—with private cloud increasingly at the center of that strategy.
Turning Momentum into Modernization
Choosing a private cloud is one step, but optimizing it is another. The survey highlights two key challenges that stand in the way of progress: team structure and expertise. Siloed teams remain the most cited hurdle to adoption (33%), while 81% of enterprises are now shifting toward platform-based teams to enable cross-functional agility. At the same time, 30% cite a lack of in-house skills, and 80% rely on professional services to support their cloud operations. The opportunity lies in enabling internal teams, investing in upskilling, and building lasting capability that reduces long-term dependence on external support, creating a foundation for sustainable innovation.
The Road Ahead
The findings from the Private Cloud Outlook 2025 survey are a wake-up call. Private cloud is no longer just one piece of the IT puzzle; it’s the foundation of a smarter, more secure, and AI-ready IT strategy. As enterprises reset their approach to workload placement, they’re seeking platforms that deliver enhanced security and compliance, more predictable cloud spending, tighter control over data sovereignty, and the ability to support advanced AI and ML workloads. Just as importantly, they want to accelerate application delivery without compromising governance. The real opportunity lies in adopting a workload-centric model—one that prioritizes strategy over infrastructure, and flexibility over hype. In today’s hybrid IT environment, private cloud isn’t a fallback. It’s a force for progress.
