January 16, 2025 - In a series of recent keynotes, Broadcom CEO Hock Tan and Oracle Chairman Larry Ellison have emphasized the growing importance of private cloud solutions for enterprises. During the VMware Explore 2024 keynote, Tan stated, 'The future of the enterprise -- your enterprise -- is private,' underscoring the benefits of private cloud and AI driven by proprietary data.
Ellison supported this view in a quarterly earnings call, predicting that private clouds will soon outnumber public clouds due to their affordability and control over infrastructure. He noted, 'Enterprises can gain the benefits of cloud without deploying workloads to shared infrastructure.'
The demand for private cloud solutions has surged as companies grapple with rising costs from hyperscalers and data privacy concerns. A report from Gartner indicates that 90% of organizations are expected to adopt hybrid architectures within the next two years, with global cloud spending projected to exceed $700 billion in 2025.
Several companies are actively pursuing private cloud strategies. Broadcom, after acquiring VMware, has prioritized its VMware Cloud Foundation as a key offering. Other firms, such as Dell and HPE, are also expanding their private cloud services, with notable implementations including Kohl's partnership with Dell and Barclays’ migration of over 50,000 workloads to HPE private cloud.
Industry analysts suggest that as AI becomes central to cloud strategies, private cloud solutions will gain traction, particularly for organizations managing sensitive workloads. Deloitte reports a significant uptick in client inquiries about private cloud, driven by the costs associated with generative AI workloads in public cloud environments.