TL;DR
- Private cloud is gaining traction as a strategic platform for IT modernization
- 53% of organizations prioritize private cloud for deploying new workloads
- Security, GenAI, and cost predictability are driving the shift towards private cloud
- 69% of enterprises are considering repatriating workloads from public to private cloud
Companies are realigning their cloud strategies, which is roughly how the “Private Cloud Outlook 2025” report by Broadcom can be summed up. Cost predictability, meeting GenAI requirements, and growing confidence in the fulfillment of security and compliance rules all speak in favor of private cloud computing – at least as strongly as for computing in the public cloud.
Private cloud computing is experiencing a resurgence in popularity
Private cloud computing is experiencing a resurgence in popularity, driven by the need for cost predictability, security, and compliance. According to the “Private Cloud Outlook 2025” report by Broadcom, 53% of organizations prioritize private cloud for deploying new workloads. This shift towards private cloud is also driven by the growing importance of GenAI requirements and the need for cost predictability.
The report highlights that 69% of enterprises are considering repatriating workloads from public to private cloud, with one-third having already done so. This trend is driven by the realization that public cloud is not always the best option for every workload. In fact, 92% of respondents trust private cloud for security and compliance needs, compared to 66% who trust public cloud.
Drivers of the Cloud Reset
The cloud reset is driven by several factors, including:
- Security concerns: Data privacy and security concerns top the list of GenAI adoption challenges
- Cost predictability: 90% of organizations value private cloud’s financial transparency and predictability
- GenAI requirements: 55% prefer private cloud for AI model training, tuning, and inference
Benefits of Private Cloud
Private cloud offers several benefits, including:
- Customization: 91% of organizations value customization to meet business-specific needs
- Financial transparency: 90% of organizations value financial transparency and predictability
- Flexibility: 89% of organizations value flexibility and scalability
Conclusion
The cloud reset is a significant shift in the way organizations approach cloud computing. With the growing importance of GenAI, security, and cost predictability, private cloud is becoming an increasingly attractive option. As organizations reassess their cloud strategies, they are realizing that private cloud can offer a more secure, compliant, and cost-predictable alternative to public cloud.
References
[^1]: Broadcom (2025). “Private Cloud Outlook 2025 Report“. Retrieved 2025-09-15.
[^2]: TechInformed (2025). “Cloud reset sees repatriation to private cloud“. Retrieved 2025-09-15.
[^3]: VMware Cloud Foundation (2025). “The Cloud Reset: Why Private Cloud Is Becoming the Strategic Core of Enterprise IT“. Retrieved 2025-09-15.
[^4]: Broadcom (2025). “Introducing the Private Cloud Outlook 2025: The Cloud Reset“. Retrieved 2025-09-15.
[^5]: TechRadar (2025). “Is it time for a ‘cloud reset’? New study claims public and private cloud balance is now a major consideration for companies across the world“. Retrieved 2025-09-15.
[^6]: David Linthicum (2025). “Cloud Reset: Why Companies Are Shifting Away from Public Cloud“. Retrieved 2025-09-15.
[^7]: Private Cloud Outlook 2025 (2025). “Private Cloud Outlook 2025: The Cloud Reset“. Retrieved 2025-09-15.
[^8]: VMblog (2025). “How Private Cloud Just Flipped the Script on Enterprise IT Strategy“. Retrieved 2025-09-15.
