Cloud computing has transformed business operations for over a decade, promising agility, scalability, and innovation. But as organizations mature in their cloud journeys, the conversation is shifting. The “cloud reset” is here—a strategic pivot away from the dogma of “public cloud first” toward a more nuanced, workload-centric approach that often places private cloud at the center of enterprise IT strategy.
What is the cloud reset?
The cloud reset describes a global movement among enterprises to reevaluate and recalibrate their cloud strategies. Instead of defaulting to public cloud for every workload, organizations are now intentionally matching each application or service to the environment that best meets its needs—whether that’s public, private, or a hybrid model.
This shift is driven by real-world experience, economic pressures, geopolitical concerns, and the need to balance innovation with risk management. The result? A more deliberate, flexible, and resilient cloud ecosystem.
Key trends shaping the cloud reset
1. The end of public cloud first
For years, public cloud was seen as the default destination for new workloads. Today, that’s no longer the case. According to recent research, 93% of organizations deliberately balance a mix of private and public clouds, and building new workloads in private cloud is now a top three-year priority for IT leaders.
2. Workload repatriation is real
Workload repatriation—the process of moving applications and data from public cloud back to private cloud or on-premises—is accelerating. Globally, 69% of enterprises are considering repatriation, with one-third already having moved some workloads. In Asia-Pacific and Japan, 67% are considering repatriation, and a third have acted.
This movement is not about undoing failed migrations, but about aligning workloads with the environment that best fits their requirements—especially for security, compliance, cost, and performance.
3. Private cloud is a strategic priority
Private cloud is shedding its legacy image. Today, 84% of organizations run both traditional and cloud-native applications in private cloud environments. IT leaders trust private cloud for security and compliance (92%) and value its financial predictability (90%). Private cloud is now a strategic equal to public cloud, especially for sensitive and data-intensive workloads.
4. Hybrid and multi-cloud dominate
Hybrid and multi-cloud strategies are the new norm. Over 85% of organizations are expected to adopt hybrid or multi-cloud approaches by the end of 2025. These models offer flexibility, resilience, and the ability to avoid vendor lock-in. Kubernetes and container workloads, in particular, are increasingly deployed across both private and public environments.
5. AI and data-intensive
The rise of AI and machine learning is transforming cloud infrastructure. By 2029, Gartner predicts that 50% of cloud compute usage will be driven by AI/ML workloads. This is accelerating the need for environments that can handle large-scale data processing, security, and compliance—often making private and hybrid cloud more attractive.
6. Security, compliance, and cost are top concerns
Security and compliance are the leading drivers for workload repatriation and private cloud adoption. Cost management is also critical, as public cloud bills can spiral out of control. Organizations are seeking the best of both worlds: the innovation and scalability of public cloud, and the control and predictability of private cloud.
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The cloud reset in action: real-world examples
- Asia-Pacific and Japan: 94% of enterprises use an intentional mix of public and private clouds. 78% run traditional, modern, and AI applications in private cloud, and two-thirds prefer private or hybrid environments for Kubernetes workloads.
- Global Enterprises: 93% balance private and public clouds, with a strong focus on security, compliance, and cost predictability.
- Industry-Specific Trends: Sectors like healthcare, finance, and telecom are leading the charge in private and hybrid cloud adoption due to regulatory requirements and the need for data sovereignty.
The future of cloud: what’s next?
The cloud reset is not a temporary trend—it’s a fundamental shift in how enterprises approach IT infrastructure. As organizations continue to mature in their cloud strategies, they will increasingly favor flexibility, control, and alignment with business needs over one-size-fits-all solutions.
Expect to see:
- More workload-centric cloud strategies
- Continued growth in private and hybrid cloud adoption
- Greater focus on AI, security, and cost management
- Ongoing innovation in cloud orchestration and management tools
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