VMware pushes private cloud repatriation following Covid public cloud boom

VMware has claimed enterprises are repatriating applications to private cloud due to concerns around security and cost of public cloud services.

The virtual machine firm cited a study from Barclays that found 83% of enterprise tech leaders were planning to repatriate some workloads from the public cloud in 2024 to make its case for its suite of private cloud services.

The survey marked a significant swing from 2021, when just half of respondents were looking to repatriate workflows, although it did not reveal the scale of their repatriation efforts.

Taking to the stage at VMware Explore in Barcelona, Broadcom (VMware’s parent company) CEO and president Hock Tan claimed that companies were currently being confronted by three  “public cloud Cs”: Cost, Complexity and Compliance

He added“ Over eight out of 10 CEOs today are moving workloads back on prem, a huge change from the beginning of the pandemic four years back. What does this mean? The future of enterprise is private cloud, and private AI, fuelled by your private data.”

Hock Tan revealed that over 70% of the core capacity that VMware has sold in the last 12 months is based on the firm’s private cloud solution, VMware Cloud Foundation (VCF).

Hock Tan also took a swipe at enterprise customers and running concerns that VMware would up its pricing after it was bought by Broadcom over a year ago.

During the acquisition, reports emerged claiming the firm would look to increase the cost of its services by up to 150% due to the decision to shift to a licencing model.

Facing backlash from existing customers, Broadcom has attempted to explain the new product and licensing model with a hope that current customers can manage the transition.

This transition included the re-do of the previous channel partner structure, with Broadcom focusing on a smaller number of value-added resellers and direct relationships with its largest customers.

However, during his keynote, Tan also pointed fingers at demanding enterprises who “don’t like to pay for the value of the technology we all love.”

“What I hear is how VCF is a great product, solid and reliable, but you want our products ot be easy to use. You want them to work well together, and you’re asking us to do the had work to make that happen,” he explained to thousands in attendance at Barcelona’s Gran Fira.

“But will your company pay for it?”

His keynote address came as Broadcom unveiled a raft of updates for its VCF private cloud platform, with a focus on the growing adoption of artificial intelligence, national digital sovereignty and cyber resilience.

This included a new recovery service in partnership with Google Cloud and a number of AI solutions.