Behind the cloud reset: What CIOs are learning from real world deployments

The enterprise cloud narrative is undergoing a fundamental shift. After years of public cloud evangelism, IT leaders are orchestrating what Broadcom’s latest research aptly terms a “cloud reset”—a strategic recalibration that positions private cloud as tomorrow’s strategic imperative.

The numbers tell a compelling story. According to Broadcom’s inaugural “Private Cloud Outlook 2025: The Cloud Reset” report, which surveyed 1,800 senior IT decision-makers globally, 93% of enterprises now balance a hybrid mix of private and public cloud environments. More striking still, 69% are actively considering repatriating workloads to private cloud, with 35% having already executed this strategic shift.

This isn’t cloud repatriation driven by the failure of public cloud migration—it’s optimization driven by the need for security, simplicity, and cost control.

The security awakening

Security concerns are propelling this transformation. The research reveals that 92% of enterprises trust private cloud for security and compliance, while 49% cite data privacy and security concerns as their primary worry about public cloud. These aren’t abstract fears. Data loss and leakage and data privacy and confidentiality remain the top security concerns in cloud computing, according to recent industry studies.

Security-sensitive applications lead the repatriation trend, followed by data-intensive applications. What’s particularly noteworthy is that modern, cloud-native workloads are as likely to be repatriated as traditional applications, debunking the myth that only traditional applications return to private infrastructure.

The cost reality check

Financial predictability is the second pillar driving private cloud adoption. Broadcom’s research found that 94% of enterprises believe some of their public cloud spend is wasted, with nearly half (49%) estimating that more than a quarter of their public cloud expenditure delivers no value. Even more concerning, 31% believe waste exceeds 50% of their cloud budget.

This cost unpredictability stems from the complexity inherent in public cloud pricing models and the unmanageability of hundreds of consumption meters.  As per the IDC blog, about half of cloud buyers spent more on cloud than they expected in 2023, with 59% predicting similar cost overruns during 2024. In contrast, 90% of organizations value the financial visibility and cost predictability that private cloud environments provide as per the Broadcom study. These statistics illustrate the beliefs–and realities–that are driving enterprises to private cloud.

The strategic repositioning

Enterprise cloud strategies are evolving beyond the binary public-versus-private debate toward intentional workload placement. Organizations are no longer asking “cloud or no cloud” but rather “which cloud for which workload.” This strategic maturity recognizes that different applications have different requirements for security, compliance, performance, and cost optimization.

The data supports this shift toward intentionality. Fifty-three percent of enterprises plan to build new workloads in private cloud environments, indicating that private cloud isn’t just about repatriating existing applications—it’s about strategic future deployment decisions.

The 84% of enterprises running both traditional and cloud-native applications in private cloud demonstrate that modern private infrastructure has achieved the agility and self-service capabilities that were once exclusive to public cloud platforms.

The AI catalyst

Generative AI is accelerating private cloud adoption. Organizations eager to harness AI capabilities face significant hurdles around data privacy and skill shortages. Private cloud environments offer the data residency, security controls, and governance frameworks necessary for enterprise AI deployment while maintaining compliance with increasingly stringent data protection regulations.

Overcoming implementation challenges

Success in this cloud reset requires organizations to address organizational challenges. IT teams must overcome traditional silos and skill gaps that have historically hindered private cloud deployments. Restructuring teams into platform level teams and enhancing in-house expertise are critical steps for realizing private cloud’s full potential.

The path forward

The cloud reset represents a maturation of enterprise IT strategy. Organizations are moving from cloud enthusiasm to cloud optimization, driven by real-world experience with security vulnerabilities, cost overruns, and compliance requirements.

This shift doesn’t represent a rejection of public cloud but rather an embrace of strategic cloud deployment. The most successful organizations will be those that deploy workloads based on specific requirements rather than broad assumptions about cloud superiority.

Private cloud has evolved far beyond its legacy reputation. Modern private cloud platforms offer the self-service capabilities, automation, and agility that enterprises demand while providing the security, compliance, and cost predictability that public cloud often cannot guarantee.

The cloud reset is here. Organizations that recognize private cloud as a strategic asset will be best positioned to optimize their cloud investments for security, cost, and performance in an increasingly complex digital landscape.

To learn more, visit us here.

About the author:

Pankaj Gupta is Senior Director of Private Cloud Solutions at VMware by Broadcom, where he helps customers unlock the full value of their private cloud investments. Previously, he led go to market initiatives across networking, security, and cloud portfolios at Cisco, Citrix and other leading technology firms.