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7 Private Cloud Trends to Watch in 20257 Private Cloud Trends to Watch in 2025
Hybrid cloud is common, but not every organization is using private cloud as wisely as they should.
7 Min Read
Aigars Reinholds via Alamy Stock
There are better and worse ways to approach private cloud, which some companies are learning the hard way. While it’s tempting to repatriate some things from public cloud to private cloud, it’s better to do it with applied cloud learning versus a traditional infrastructure mindset.
“I’m seeing people increasingly wanting to find additional efficiency on premises. If I was to pick a word for 2025, it would be, “optimization.” Everyone’s under a lot of pressure. They’re trying to bring in new compute capabilities to their data center, including GPUs to support AI and more storage to support the data activities related to AI and [analytics],” says Hillery Hunter, CTO and GM of innovation at IBM and an IBM Fellow. “[P]rivate cloud is often used as a vehicle to reset the efficiency of an environment.”
However, the on-premises environment may include many IT silos supporting different lines of business and equipment purchased for specific projects. When there’s not a consistent control plane, the aggregate utilization of all the systems is lower than it needs to be because only certain applications or workloads run on configured environments. The goal now is to optimize that for better efficiency.
"[A] private cloud environment that is virtualized and offers container support can be used as a migration destination, still on premises, but then you have more people sharing a more consistent set of resources,” says Hunter. “You’re having people develop to a common set of templates in terms of the kind of system configuration. And while it takes work to get to that kind of environment, it can have huge payoffs in terms of the security [because] the configurations are much more consistent, the compliance overheads are lower and the speed to get new capacity added to the environment.”
Following are some more private cloud trends in 2025.
1. Repatriating workloads
A lot of organizations are repatriating workloads to private cloud from public cloud, but Rick Clark, global head of cloud advisory at digital transformation solutions company UST warns they aren’t giving it much forethought, like they did earlier when migrating to public clouds. As a result, they’re not getting the ROI they hope for.
“We haven’t still figured out what is appropriate for workloads. I’m seeing companies wanting to move back the percentage of their workload to reduce cost without really understanding what the value is so they’re devaluing what they're doing,” says Clark. “If they’d given more forethought into what they were taking to the cloud and what to be bringing back, they’d be in a better place. [T]hey don't really understand what they’re moving back and they’re comparing apples and oranges.”
A key factor is understanding the business value and being able to communicate that in business terms. All too often, organizations are randomly choosing what to put in private cloud as opposed to thinking critically about what workloads are where and why. In the worst cases, the organization has lost the operational skill to manage and operate things in their own data center, but they haven’t considered this issue.
2. Hybrid environments will become even more popular
Trevor Horwitz, CISO and founder at cybersecurity, consulting, and compliance services provider TrustNet believes private cloud strategies will evolve as companies seek more control over data security, regulatory compliance, and operational flexibility.
“I expect to see more organizations embracing hybrid and multi-cloud environments and integrating private clouds with public cloud resources to keep data flexible yet secure,” says Horwitz in an email interview “This shift is driven by the need for resilience and vendor flexibility, and zero-trust frameworks make this possible by securing data across multiple environments. As the regulatory landscape tightens with laws like GDPR and CCPA, private clouds will become essential for companies handling sensitive data to ensure compliance and control over data sovereignty.”
3. Real-time monitoring and machine learning
Roy Benesh, chief technology officer and co-founder of eSIMple, an eSIM offering, believes private cloud will continue to be in high demand, especially in sectors like healthcare and finance that have stringent data protection regulations.
“I think businesses will depend more on real-time monitoring and machine learning to strengthen data protection as they use private clouds to satisfy security requirements,” says Benesh in an email interview. “In my experience, private clouds can have drawbacks, too, such as high upfront expenditures and the requirement for knowledgeable administration. This can be particularly difficult for smaller businesses to handle.”
4. AI and automation
Artificial intelligence and automation are also set to play a crucial role in private cloud management. They enable businesses to handle growing complexity by automating resource optimization, enhancing threat detection, and managing costs.
“The ongoing talent shortage in cybersecurity makes [AI and automation] especially valuable. By reducing manual workloads, AI allows companies to do more with fewer resources,” says Trevor Horwitz, CISO and founder at cybersecurity, consulting, and compliance services provider. “My advice is to prioritize adaptability. Be prepared to shift your strategy as business needs evolve, especially as technology advances. Mastering the private cloud is about building an agile, secure, and sustainable infrastructure, meeting today’s demands while preparing for what’s next."
5. Multilayer cybersecurity
Security affects all aspects of a cloud journey, including the calculus of when and where to use private cloud environments. One significant challenge is making sure that all layers of the stack have detection and response capability.
“You have to protect each layer separately -- network, cloud, host, server, and application. They're not "defense in depth. Each component -- NDR, CDR, EDR, SDR, and ADR -- protects against a different set of threats,” says Jeff Williams, founder and CTO at runtime application security company Contrast Security. “The biggest code-to-cloud technology gap is the lack of application detection and response and application security monitoring (ASM) to create visibility and protection for their biggest asset -- the application estate. In the last year, this area saw 100% growth in attack traffic, outpacing all other threats.”
If organizations have visibility into who is attacking their applications, what attack vectors they are using, which systems are being targeted and which attacks are successful, they can prioritize remediation efforts and compensating controls.
“Take a look at the new EU Product Liability Directive (PLD). It creates no-fault liability for any software defect, including vulnerabilities, just like any other product,” says Williams. “This means regardless of whether a company follows best practices, does all the right testing, meets compliance requirements, etc., they are completely liable if their users are harmed by a breach,” says Williams.
6. Data sovereignty and regulatory compliance
Rising concerns around data sovereignty and regulatory compliance will drive private cloud adoption in specific industries, such as financial services and healthcare, as companies seek more control over their data. Organizations are already diversifying their cloud footprints across different public clouds to optimize costs and increase resiliency.
“Efficiently operating a complex hybrid cloud environment requires both infrastructure and security teams to have the right set of skills and experience,” says Loris Degioanni, founder and CTO at real-time cloud security firm, Sysdig. “Enterprises will need to invest in personnel who know how to scale and secure a private cloud, challenges that are often more complicated than in public cloud deployments.”
It’s important to understand when a private cloud is a good choice for deployments and when it’s not. Organizations should understand which cloud better serves their use cases and emphasize proficiency in shifting workloads between public and private clouds. Private cloud mastery also means gaining the ability to optimize costs and manage cloud infrastructure efficiently.
7. VMware exodus
Randy Armknecht, global cloud engineering practice lead at business consulting firm Protiviti, expects to see more organizations reevaluate their use of VMware given the 2024 licensing fiascos. The acquisition of VMware is the primary driver.
“RedHat OpenShift is a common topic of discussion among organizations considering new options,” says Armknecht. “Now is a great time to refresh the private/hybrid cloud strategy and ensure that the technology, the licensing and the overall alignment to business objectives is clear for all.”
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