69% considering cloud repatriation? Broadcom stat hypes private cloud gains

• Value private cloud’s financial visibility and predictability: 90%
• Report some level of waste on public cloud spend: 94%
• Believe more than 25% of their public cloud spend is wasted: 49%

“Pretty much all of them believe that some of their spend, if not a majority of their spend, is wasted in public cloud. When you look at the survey data, 94% of the survey respondents said that public cloud spend is wasted, of which more than close to 50% believe that 25% of their spend in public cloud has been wasted,” Shenoy said. He explained while public cloud might have been good for agility and developer experience, “the business side of public cloud has hit a roadblock, mainly because of cost concerns.”

Cost management and optimization are now key priorities for survey respondents, and enterprises are looking for more predictable cost structures through private cloud solutions. (See our story about network bloat: AI-driven data movements cause cloud overspend)

Today 92% of enterprises run a mix of private and public clouds, and three-fourths adopted this mix intentionally. The Broadcom survey also shows that new workloads are driving the shift to private cloud. The survey results show that:

• 84% use private cloud for mixed application types
• 66% prefer private cloud for containerized applications
• 55% prefer private cloud for genAI workloads

Looking ahead three years, 53% of organizations said they intend to build new workloads in the cloud. At the same time, 50% reported they are building new workloads in public clouds, and 45% indicated they are making efforts to optimize cost management for those cloud workloads. Forty-four percent said they plan to improve with security and disaster recovery for operational resilience. Another 42% of organizations said they will focus on reducing their environmental impact, according to the survey.

Private cloud challenges

The interest in private cloud isn’t without its challenges, and the report details the concerns enterprises have when considering private cloud. To start, 33% of organizations said that siloed IT teams represent the greatest challenge of private cloud adoption. In response, 81% of respondents are now structuring their technical teams around a platform team rather than in silos.

Skills represent another key challenge to private cloud adoption. Thirty percent of respondents cited a lack of in-house expertise as one barrier to private cloud adoption, and 80% of responding organizations said they depend on professional services for cloud-related needs. Shenoy said that providers such as Broadcom have a responsibility to help organizations overcome skills challenges.