Across Asia Pacific and Japan, a cloud reset is underway as organizations shift workloads from public to private cloud in an effort to overcome challenges around security and compliance, cost, complexity, and performance.
Broadcom’s Private Cloud Outlook 2025: Asia Pacific and Japan, The Cloud Reset, reveals that 94% of enterprises in APJ are using an intentional mix of public and private clouds. Another 67% of enterprises in the region are considering repatriating workloads from public to private cloud, with one-third already having done so. This shift demonstrates how enterprises across the region are looking beyond one-size-fits-all solutions, and matching each workload with a cloud environment that best suits their needs.
The Cloud Reset research findings identified five key trends from across the region:
- Workload Repatriation Signals a Strategic Shift Across APJ: The research highlights that workload repatriation — moving workloads back from public to private cloud — is a reality. The era of public cloud-first strategies, in which public cloud was the assumed destination for all workloads, is shifting toward a cloud-best strategy driven by a workload-first mindset. Enterprises across APJ are now aligning each workload with the best-fit cloud environment that delivers greater control, confidence, and continuity in an increasingly complex IT landscape. For example, 78% of APJ enterprises now run traditional, modern, and AI applications in private cloud. In addition, two-thirds prefer a private only, or private/public hybrid cloud environment for Kubernetes and container workloads, demonstrating that private cloud has moved beyond its legacy reputation and is now a strategic equal to public cloud.
- Security and Compliance Are Private Cloud’s Strongest Fit: Security concerns are reshaping cloud decisions, with private cloud emerging as a preferred choice for many enterprises. In APJ, 88% of organizations trust private cloud environments for security and compliance, and 28% are adopting sovereignty-certified private cloud solutions. This highlights the importance of regulatory alignment as governments enforce data sovereignty and security in the region.
- Cost Efficiency and Financial Visibility Are Key Drivers: Private cloud isn’t just secure — it’s also financially smart. The research highlights that 89% of organizations cite financial predictability and transparency of private cloud as a key advantage, and 73% say it delivers cost efficiency. In APJ, 55% of organizations believe more than a quarter of their public cloud spend is wasted, and private cloud offers a compelling alternative. By minimizing unexpected cloud bills and giving organizations better control over spending, private cloud has become a strategic enabler for enterprises that need cost certainty and predictability.
- Moving from IT Silos to Platform Teams: Organizations across APJ recognize the need to evolve IT teams and processes required to support a cloud operating model internally. In fact, 76% of APJ enterprises are restructuring IT around platform teams, breaking away from traditional silos. There is also a strong demand to upskill IT teams, with 83% of enterprises relying on professional services for cloud expertise. These findings suggest that to unlock the full potential of private cloud, IT leaders need to invest in both technology and their people to overcome silos and identify solutions that enable their teams to scale and grow their expertise. That transformation is underway across many enterprises in the APJ region.
- The Rise of GenAI Workloads: As enterprises focus on innovation, the adoption of GenAI workloads is gaining momentum with 81% of organizations in APJ already running pilots or live deployments of AI-driven solutions. Given that GenAI workloads are highly data-intensive and require significant computational power, many enterprises are turning to cloud, both public and private, over bare metal for efficiency, resource sharing, and workflow automation. For enterprises in APJ, 56% prefer private cloud for GenAI model training, tuning and inferencing. A unified private cloud platform approach for managing AI workloads provides the additional control, security, resilience and scalability needed to manage large volumes of data while optimizing performance.
The Path Forward
As organizations prepare for the demands of growing workloads, GenAI and data sovereignty, combined with economic and geopolitical pressures, the need for a strategic cloud reset will only grow. With 88% of IT leaders revealing that their ideal setup includes a private cloud with the flexibility and agility of public cloud, and the security and performance of on premises IT, it’s evident that enterprises want the best of both worlds. Increasingly that starts with private cloud at the center of their strategy, delivering cloud benefits while improving control and security.
The message from senior IT leaders across APJ is clear: Private cloud is an operating model that has become a critical part of the modern enterprise infrastructure. It’s not just relevant, it’s essential.
These findings and more can be found in Broadcom’s Private Cloud Outlook 2025: Asia Pacific and Japan, The Cloud Reset, an in-depth survey of 600 senior IT leaders conducted in March and April 2025 by Illuminas, in partnership with Broadcom. Get the full report here.