Summary:
- 90% of respondents value private cloud for its financial visibility and predictability.
- 94% report some level of waste on public cloud spend, with 49% believing more than 25% of their spend is wasted.
- Enterprises are prioritizing cost management and optimization, with a shift towards private cloud solutions driven by new workloads.
Article:
Private cloud adoption is on the rise as enterprises prioritize financial visibility and predictability in their cloud spending. A recent survey revealed that 90% of respondents value the benefits of private cloud, while 94% acknowledge some level of waste on public cloud spend. In fact, close to half of the respondents believe that more than 25% of their public cloud spend is wasted. This shift is driven by cost concerns, as businesses seek more predictable cost structures through private cloud solutions.
The survey also highlighted the growing trend of enterprises running a mix of private and public clouds, with 92% currently utilizing both. Three-fourths of organizations intentionally adopted this mix, with new workloads playing a significant role in the shift towards private cloud. Specifically, 84% of respondents use private cloud for mixed application types, 66% prefer it for containerized applications, and 55% favor it for genAI workloads.
Looking ahead, the survey revealed that 53% of organizations plan to build new workloads in the cloud within the next three years. Additionally, 50% are currently building new workloads in public clouds, while 45% are focusing on optimizing cost management for these workloads. Other key priorities include improving security and disaster recovery (44%) and reducing environmental impact (42%).
Despite the growing interest in private cloud, organizations face challenges in adoption. Siloed IT teams represent a significant concern for 33% of respondents, prompting 81% to restructure their technical teams around a platform team model. Skills shortage is another barrier, with 30% citing a lack of in-house expertise as a challenge. As a result, 80% of organizations rely on professional services for cloud-related needs. Providers like Broadcom are stepping up to help organizations overcome these skills challenges and navigate the complexities of private cloud adoption.
