current
Private Cloud Resurgence
On-premises computing, particularly private cloud, will gain momentum as organizations address data sovereignty, cost, and security concerns, driven by alternatives to VMware.
Timeframe
near-term
Categories
Subcategories
Impact areas
Detailed Analysis
Driven by the need for greater control over data and costs, on-premises computing, including private cloud, is experiencing renewed interest. "On-premises computing (by any name) is on the rise again as companies solve sovereignty, cost, and data ownership/security challenges." Organizations are increasingly adopting hybrid cloud approaches, leveraging private cloud for workloads requiring enhanced security, privacy, and regulatory compliance, such as AI model training and RAG integration. However, due to pricing and bundling changes from dominant player VMware, organizations are exploring alternatives like Nutanix and OpenStack, fostering a more diverse private cloud ecosystem.
Context Signals
Increasing concerns about data sovereignty and security
Rising cloud costs
VMware's pricing and bundling changes
Edge
The growth of private cloud will create new opportunities for vendors offering alternative solutions to VMware.
The increased adoption of hybrid cloud approaches will require organizations to develop robust strategies for managing and integrating their on-premises and cloud environments.
The resurgence of private cloud will also drive innovation in on-premises infrastructure technologies.
