The key insight in the report highlights the ‘Cloud Reset’, a phenomenon they are defining as a recalibration in cloud infrastructure across the board, centring private cloud as a strategic platform for IT modernisation.
As a VMware Cloud Service Provider (VCSP), at the Premier Partner level of the Broadcom Advantage Partner Program, we offer Private Cloud and multi-tenant Enterprise Cloud platforms, powered by VMware. In this article, we are exploring the key findings of the Private Cloud Outlook 2025 report, and how we can support your organisation to navigate the Cloud Reset.
Key insights from VMware by Broadcom’s Private Cloud Outlook 2025
Hybrid infrastructure is central to cloud strategy
The results of the survey showed that this push for private cloud is most commonly taking place within hybrid infrastructure, with 93% of respondents deliberately balancing a mix of private and public clouds. This mixed infrastructure is preferred to traditional single-deployment models, with only 15% stating they would prefer a full public cloud model, and 10% favouring a full private cloud model.
The benefits of this approach are clear. Hybrid cloud infrastructure enables organisations to host different workloads in the environment which best suits them, maximising the benefits of both private and public cloud.
The report also investigated sentiment towards different cloud operating models, which showed that both public and private cloud environments are valued by businesses, with high satisfaction scores for reliability and the simplification of IT/operations. However, the top satisfaction ratings differed, with public cloud ranking highest for scalability, and private cloud for security. With hybrid infrastructure, organisations can take advantage of these differing benefits, for example hosting sensitive data in a private cloud environment, and hosting test environments in the public cloud.
Cloud repatriation from public to private cloud is growing
Cloud repatriation is a much discussed, but commonly misunderstood topic. Many organisations and individuals believe that the term solely refers to moving their entire infrastructure on-premise, and dismiss the idea. In reality however, cloud repatriation generally refers to migrating specific workloads from the public cloud to a private cloud, retaining the benefits of cloud computing, while gaining better control and security.
Repatriation has been a popular strategy in recent years, highlighted in the survey results. 69% of those surveyed are considering repatriating workloads from public cloud to private, with one-third having already done so.
Security was cited as the leading driver for repatriation, with 66% of respondents being “very” or “extremely” concerned about public cloud compliance. In contrast, 92% of organisations stated that they trust the security and compliance of their private cloud. Other concerns over reliance on public cloud included cost, with 94% believing some of their public cloud spend is wasted, and complexity, with 76% believing that public cloud is creating new non-core IT silos, and 70% thinking that these silos make it difficult to govern cost and security.
Private cloud is powering modern workloads
Public cloud was often pitched as the go-to solution for modern workloads, such as Kubernetes or other cloud-native environments. However, VMware by Broadcom’s research showed that 84% of organisations are currently using private cloud for both traditional and modern applications, demonstrating a broader range of use cases.
The report showed that 98% of respondents were in the adoption curve of GenAI, and 77% were already running pilots or live deployments. As AI use increases, it is a priority for organisations to maximise performance and cost-efficiency through optimised IT infrastructure.
The main hurdle to GenAI adoption was data privacy and security concerns, reported by 49% of respondents. Private cloud is therefore a clear solution for harnessing AI, while prioritising security. This solution was supported by the results, with organisations choosing private cloud environments for AI workloads at nearly the same rate as public cloud (55% vs 56%).
Again, private cloud is commonly being used to host AI and other modern workloads within a hybrid infrastructure. The report stated: “As organizations modernize private cloud environments, they can position themselves to leverage both private and public cloud solutions for maximum benefit, with less dependency on external resources”.
The IT and tech skills gap is driving a need for external support
The report additionally highlighted the role of the IT and tech skills gap in cloud adoption. Of the IT leaders surveyed, 30% cited a lack of in-house skills/expertise as a barrier to private cloud adoption, and 80% currently depended on professional services for cloud-related needs. These findings echo the results of our own IT and Tech Skills Gap Report 2024, which found that 84% of UK businesses were struggling to source the talent they needed to address their IT challenges.
The IT and tech skills gap can be bridged by working with a managed service provider (MSP), such as Hyve. Expert external management and support allows organisations to reap the rewards of a private cloud powered by VMware, without the need for in-house expertise.
An MSP can also provide crucial support with managing hybrid cloud infrastructure. While hybrid cloud offers organisations agility, its multi-environment nature means it is complex to manage without in-house expertise. An MSP can handle everything from monitoring and optimisation to security and compliance, giving all the benefits of hybrid infrastructure with none of the operational burden.
How our VMware-powered solutions can support you through a cloud reset
The various findings from the Private Cloud Outlook 2025 report from VMware by Broadcom demonstrate a clear common thread – the cloud reset is in progress. Enterprises are re-evaluating their cloud strategies to embrace the flexibility and cost efficiency of cloud, while retaining control with secure and compliant infrastructure.
IT leaders want the “best of both”: all the benefits of a cloud operating model with the control, security, and predictability of a dedicated environment. In fact, 90% of IT decision-makers say their ideal setup is a private cloud that delivers those combined benefits.
If you’re reviewing your IT infrastructure, we can support you. Our managed VMware private cloud offers full scalability and flexibility, with dedicated resources. If you have workloads which do not require hosting on a private cloud, but have concerns about the security and costs of a public cloud, our managed VMware enterprise cloud offers an alternative. Hosted on multi-tenant infrastructure, your virtual environment will be fully logically isolated, providing security and control.
Alternatively, you can combine the benefits of our private and enterprise cloud platforms with a managed hybrid cloud solution.
Whatever solution you opt for, we operate on a transparent billing model, with expert optimisation to avoid wasted cloud spend and keep your costs under control. With enterprise-grade security, 24/7/365 support and management as standard, you can ensure your data is protected, while bridging the skills gap.
Talk to our experts about building a VMware-powered cloud solution to meet your needs. Fill out our contact form and one of the team will be in touch.
