Cloud Repatriation: Why 83% of Enterprise Leaders Want to Move Back to Private Cloud

A growing number of enterprise CIOs are rethinking their cloud strategies, with a significant shift towards bringing workloads back from the public cloud to private cloud infrastructure. According to a recent Barclays survey, 83% of leaders in the first half of 2024 reported plans to move workloads on-premises, up sharply from 43% in 2020.

This trend was highlighted by Broadcom CEO Hock Tan during his keynote speech at the VMware Explore event in Las Vegas, where he framed the shift as central to VMware’s private cloud and private AI strategy. The remark resonated with other industry leaders.

Dell Technologies CEO Michael Dell succinctly acknowledged the shift with a tweet: “Not surprising,” accompanied by a screenshot from the event. IBM’s global managing director, Steve Canepa, shared similar sentiments on LinkedIn, describing the moment as an indication that “we’ve crossed into a new era” of hybrid cloud. He cited key drivers behind this move: security, data residency, latency, automation, and efficiency. Canepa emphasized that the long-held belief in a “cloud-first” approach has been debunked as businesses face rising costs and complexities in the public cloud.

Tan elaborated during his keynote, explaining that extended reliance on the public cloud has caused enterprise IT teams to experience what he described as “PTSD,” facing the challenges of cost, complexity, and compliance. He argued that these issues are better managed in a private cloud environment, where businesses maintain more control.

“The future of the enterprise is private,” Tan stated, emphasizing the role of private cloud and private AI powered by an organization’s own data. While the public cloud will continue to support flexible demand and bursting workloads, Tan predicted that in this evolving hybrid model, the private cloud would serve as the foundation for innovation and business growth. He also acknowledged the ongoing work needed to realize this vision fully.

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