Overall, 72% of enterprises intend to increase their private cloud spending over the next three years, up from just 51% in 2025’s survey. In addition, 50% of enterprises have already repatriated some workloads, up from 35% in 2025, and another 33% are considering doing so. Public clouds are also growing, the report shows, but at half the rate of private cloud investment.
The increase in interest in private clouds is driven by a number of factors, including security and compliance, followed by cost predictability and performance.
Agentic AI, in particular, can quickly cause cost overruns as the use of agents can increase large language model use exponentially. According to today’s survey, 62% of IT leaders are either “very” or “extremely” concerned about gen AI and agentic AI infrastructure costs.
Enterprises are also concerned about data protection and privacy, followed closely by security and control, both of which are strengths of the private cloud deployment model.
