A survey by GTT Communications reveals that private cloud adoption is surging, with spending expected to grow significantly due to increasing AI security and compliance concerns. This trend follows a broader move to bring workloads back in-house, as 97% of respondents from another survey by Node4 indicated plans to move some workloads to private environments. While cost remains a factor, especially exemplified by 37 Signals saving $10 million through infrastructure investments, privacy, security, and control over AI remain primary motivators for enterprises investing in private cloud solutions.
Cost is a key driver behind the shift back to private cloud, but growing concerns over AI security and compliance appear to be having a bigger impact.
The survey of US and European enterprise leaders found that private cloud spending above $10 million annually will increase from 43% last year to 54% this year.
Notably, GTT's survey found more than half of AI workloads are already in private cloud or on-premise environments, largely for better security.
SaaS company 37 Signals made headlines for saving $10 million a year by ditching public cloud and buying its own infrastructure.
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