Summary
Broadcom Inc (AVGO, Financial) has released the "Private Cloud Outlook 2025" report, revealing a significant shift in cloud strategies among organizations. Conducted in partnership with Illuminas, the survey of 1,800 senior IT leaders indicates that private cloud is now considered a strategic equal to public cloud, driven by factors such as cost predictability, generative AI (GenAI) requirements, and enhanced security and compliance. The report, published on May 29, 2025, highlights that 53% of respondents prioritize private cloud for deploying new workloads over the next three years, with a notable trend towards workload repatriation from public to private cloud.
Positive Aspects
- Private cloud is now rated as a strategic equal to public cloud, driven by cost predictability and security.
- 53% of surveyed IT leaders prioritize private cloud for new workloads in the next three years.
- 84% use private cloud for both traditional enterprise apps and modern, cloud-native workloads.
- 92% trust private cloud for security and compliance needs.
- 90% value private cloud's financial visibility and predictability.
Negative Aspects
- 66% of respondents express significant concerns about public cloud compliance and security.
- 49% of organizations believe more than 25% of their public cloud spend is wasted.
- Siloed IT teams and a lack of in-house skills are major barriers to private cloud adoption.
Financial Analyst Perspective
From a financial standpoint, Broadcom Inc (AVGO, Financial)'s emphasis on private cloud solutions aligns with the growing demand for cost-effective and secure IT infrastructure. The report underscores the financial benefits of private cloud, such as improved fiscal visibility and reduced waste in cloud spending. This strategic shift could enhance Broadcom's market position by catering to organizations seeking to optimize their IT budgets while maintaining robust security and compliance standards.
Market Research Analyst Perspective
The "Private Cloud Outlook 2025" report indicates a pivotal change in cloud adoption trends, with private cloud gaining traction due to its ability to meet security, compliance, and cost predictability needs. This shift presents a significant market opportunity for Broadcom Inc (AVGO, Financial) to expand its private cloud offerings and capture a larger share of the cloud infrastructure market. The report also highlights the need for organizations to address internal challenges, such as IT team silos and skills gaps, to fully leverage private cloud advantages.
Frequently Asked Questions
What is the main finding of the "Private Cloud Outlook 2025" report?
The report reveals that private cloud is now considered a strategic equal to public cloud, driven by cost predictability, GenAI requirements, and security and compliance needs.
What percentage of IT leaders prioritize private cloud for new workloads?
53% of surveyed IT leaders prioritize private cloud for deploying new workloads over the next three years.
What are the main challenges to private cloud adoption?
Siloed IT teams and a lack of in-house skills are identified as major barriers to private cloud adoption.
Read the original press release here.
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