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The Private Cloud Resurgence: Why 90% of Enterprises Are Rethinking Their Cloud Strategies
2025-05-19 16:45:47| The Webmail Blog
The Private Cloud Resurgence: Why 90% of Enterprises Are Rethinking Their Cloud Strategies luis6283 Mon, 05/19/2025 - 09:45 Cloud Insights The Private Cloud Resurgence: Why 90% of Enterprises Are Rethinking Their Cloud Strategies May 19, 2025 By Madhavi Rajan, Head of Product Strategy, Research, and Operations, Rackspace Technology Link Copied! function copyFunction() { // Get the text field var copyText = document.getElementById("copyInput"); // Select the text field copyText.select(); copyText.setSelectionRange(0, 99999); // For mobile devices // Copy the text inside the text field navigator.clipboard.writeText(copyText.value); // Alert the copied text // alert("Copied the text: " + copyText.value); showNotification() } function showNotification() { var notificationEl = document.querySelector('span.notification-message'); //console.log('test1'); notificationEl.classList.add('notify'); setTimeout(function() { notificationEl.classList.remove('notify'); }, 1000); } Recent Posts The Private Cloud Resurgence: Why 90% of Enterprises Are Rethinking Their Cloud Strategies May 19th, 2025 Optimising Technology to Transform Patient Care May 13th, 2025 Accelerate Cloud Transformation with a Smart Path to AWS Migration April 30th, 2025 Rack Gives Back: Compassion in Action April 28th, 2025 Exploring Circular Economy Models for IT and Hybrid Cloud April 21st, 2025 Related Posts Cloud Insights The Private Cloud Resurgence: Why 90% of Enterprises Are Rethinking Their Cloud Strategies May 19th, 2025 Cloud Insights Optimising Technology to Transform Patient Care May 13th, 2025 Cloud Insights Accelerate Cloud Transformation with a Smart Path to AWS Migration April 30th, 2025 Culture & Talent Rack Gives Back: Compassion in Action April 28th, 2025 Cloud Insights Exploring Circular Economy Models for IT and Hybrid Cloud April 21st, 2025 Explore why enterprises are shifting back to private cloud. Key trends show rising repatriation, cost savings and security gains across industries like healthcare and BFSI. If you're rethinking your cloud strategy, you're not alone. Across industries, IT leaders are re-evaluating where and how their workloads run. Costs are rising. Regulations are tightening. And the pressure to modernize is colliding with the reality of legacy systems and budget constraints. According to the Rackspace Technology 2025 State of Cloud Report, 90% of enterprises are rethinking their cloud strategy. Many are finding that what worked five years ago doesnt meet the demands of todays applications, users or risk landscape. They're looking for ways to control costs, strengthen compliance, stay agile and avoid disruption all while continuing to innovate. Here are four priorities shaping those decisions: 1. Optimizing cost and performance Not every workload belongs in the public cloud. Depending on your infrastructure and compute needs, data storage and movement can become prohibitively expensive. Whether you're supporting intensive R&D or serving customers at the edge, finding the right fit helps you control costs without sacrificing performance. 2. Strengthening security and compliance Cost savings lose their value if they introduce risk. Evolving cybersecurity threats, stricter industry regulations and data sovereignty requirements make it critical to align your cloud environment with your security and compliance priorities especially in highly regulated sectors. 3. Building agile, future-proof architectures Cloud environments need to evolve as quickly as your business. From analytics to AI to new digital experiences, your infrastructure must support fast change without creating friction so you can innovate at your own pace. 4. Seamless integration into existing environments Enterprises often favor lift-and-shift cloud migrations to avoid costly and disruptive refactoring. By ensuring that new cloud solutions integrate seamlessly with existing applications and infrastructures, you can save substantial resources. What our data reveals about private cloud momentum To better understand how cloud strategies are evolving, Rackspace Technology surveyed 1,420 IT professionals across the Americas, Europe, Asia and the Middle East. Respondents came from a wide range of industries including financial services, manufacturing, retail, hospitality, government and healthcare. The results from the Rackspace Technology 2025 State of Cloud Report point to a clear shift in thinking: Nearly half (48%) of respondents consider hybrid cloud essential to their IT strategy over the next 1224 months More than two-thirds (69%) plan to repatriate workloads from public cloud to private cloud Half (50%) cite security and compliance concerns as the primary reason for repatriation Nearly half (44%) say the move was driven by a need to significantly reduce cloud spend A vast majority (80%) report that their IT concerns were resolved quickly after transitioning Why private cloud is gaining momentum Public cloud delivered the flexibility and speed businesses needed to innovate fast, especially in the early stages of digital transformation. But today, many organizations are taking a second look. Costs are climbing. Complexity is increasing. And for some workloads, public cloud simply isnt the best long-term fit. You're not alone if you're considering a shift. According to Information Age, more companies are pulling workloads back from public cloud. Even AWS acknowledges this trend, noting that repatriation is becoming more common as private infrastructure costs drop in some cases by two to four times. One high-profile example: Dropbox saved $75 million by moving workloads out of the public cloud ahead of its IPO. The private cloud advantage Given these trends, its no surprise that private cloud is gaining traction especially for organizations looking to regain control without sacrificing flexibility. Hosted private cloud, managed by trusted providers like Rackspace Technology, gives you dedicated infrastructure tailored to your specific needs. It combines the scalability of cloud with the performance, security and cost predictability of a controlled environment. Heres what that means for your business: Cost efficiency: You can reduce expenses with dedicated infrastructure and avoid vendor lock-in Stronger security and compliance: Create environments built for your regulatory and data protection requirements Agility and resilience: Customize and scale quickly to meet shifting demands and priorities Performance at the edge: For latency-sensitive workloads, especially in finance, private cloud can enable faster response times Industries favoring private cloud The 2025 State of Cloud Report shows that industries like healthcare, oil and gas, and BFSI are leading the shift to private cloud, with each reporting adoption rates above 50%. Whats driving this preference? These sectors face strict regulatory requirements, handle highly sensitive data and must meet regional data sovereignty rules challenges that are only intensifying with the rise of AI regulations, particularly in regions like the UK. For these organizations, private cloud offers the control and resilience needed to remain compliant and competitive. Simplifying your cloud strategy with Rackspace Technology Refining your cloud strategy takes more than picking the right platform. It means realigning your infrastructure with changing business priorities managing costs, meeting compliance requirements and preparing for whats next. At Rackspace Technology, we help simplify that process. Our private cloud portfolio spans everything from Bare Metal and Infrastructure-as-a-Service (IaaS) to advanced Platform-as-a-Service (PaaS) solutions like Database-as-a-Service, all of which are designed to support critical workloads with flexibility, security and control. Whether you're modernizing healthcare systems, scaling SaaS delivery or safeguarding sensitive financial data, our goal is the same: to free your team to focus on innovation, not infrastructure. And with advanced AI capabilities and our Cyber Recovery Cloud partnership with Rubrik, we help you recover essential operations quickly in the face of disruption. Learn how Rackspace Private Cloud supports cost efficiency, regulatory confidence and operational resilience all aligned to your workload demands. Tags: Hybrid Cloud Private Cloud Cloud Insights [ more ]
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