Broadcom’s 2025 report shows private cloud rising to parity with public cloud, driven by AI, security, and cost control priorities.
Broadcom’s inaugural Private Cloud Outlook Report marks a significant shift in enterprise cloud strategy. The report, based on a global survey of 1,800 senior IT leaders conducted by Illuminas, reveals that private cloud is no longer a secondary option. Instead, it is emerging as a strategic equal to public cloud, AI, and cloud-native applications. Organizations are recalibrating their cloud strategies, with private cloud now at the forefront of new workload deployments and AI innovation.
The results of the survey should align well with Broadcom, as they featured VMware Cloud Foundation (VCF) during the 2024 VMware Explore event.
Private Cloud is No Longer Playing Second Fiddle
The survey’s most striking finding is that more than 53% of respondents now prioritize private cloud for launching new workloads over the next three years. This marks a departure from the era when public cloud was the default choice. 69% of organizations are considering moving workloads from public to private cloud, and one-third have already begun this transition. Private cloud is now viewed as a peer to AI and cloud-native applications, with 66% of IT leaders favoring the deployment of containerized and Kubernetes-based applications on private or hybrid cloud environments. Notably, 55% of respondents prefer private cloud for AI model training, tuning, and inference, underscoring its growing role in supporting advanced workloads.
Security, Compliance, and Cost Control
Security and compliance have become significant factors in cloud decision-making. An overwhelming 92% of IT leaders trust private cloud to meet their security and compliance requirements. Concerns about public cloud compliance remain high, with 66% of respondents expressing significant apprehension. Security is now the leading driver for workload repatriation from public to private cloud.
Generative AI is also reshaping cloud preferences. Data privacy and security concerns are cited by 49% of organizations as the top challenge in GenAI adoption. As a result, private cloud is now chosen for AI workloads at nearly the same rate as public cloud (55% vs. 56%).
Cost predictability is another critical factor. Ninety percent of respondents value the financial visibility and predictability offered by private cloud. In contrast, 94% report some level of waste in public cloud spending, with nearly half believing that more than 25% of their public cloud spend is wasted. This highlights significant opportunities for optimization and cost control in private cloud environments.
Organizational and Skills Transformation
The momentum behind private cloud is being driven by real-world public cloud experiences, the rapid rise of GenAI workloads, and increasing demands for security, compliance, and cost predictability. However, organizations face two primary challenges: overcoming siloed IT teams and addressing a persistent skills gap. Siloed IT teams are identified as the most significant barrier to private cloud adoption (33%), while 30% of respondents cite a lack of in-house expertise.
To address these challenges, organizations are restructuring their technical teams. The report found that 81% are now organizing around platform teams rather than technology silos. This shift enables organizations to focus on staff education, close the skills gap, and reduce reliance on external professional services.
Prashanth Shenoy of VMware emphasizes that private cloud is essential for IT modernization. He notes that customers are seeking flexibility to optimize performance, control, and cost, and that a strategic approach to private cloud can enhance security, support GenAI innovation, and improve financial oversight. Shenoy’s perspective aligns with the report’s findings, highlighting the importance of private cloud in supporting secure, efficient, and innovative IT operations.
Survey Says
The Private Cloud Outlook 2025 is based on a global survey conducted by Illuminas on behalf of Broadcom from March 6 to April 4, 2025. The survey included 1,800 senior IT decision-makers from organizations of all sizes across North America, Europe, and Asia Pacific. Respondents represented a range of sectors, including financial services, government, healthcare, insurance, and pharmaceuticals.
For the complete survey and additional findings, visit Broadcom’s official report page.
Engage with StorageReview
Newsletter | YouTube | Podcast iTunes/Spotify | Instagram | Twitter | TikTok | RSS Feed
