Broadcom Survey Finds 97% of IT Leaders Cite Public Cloud Waste, Spurring Shift to Private AI
Enterprise AI
Broadcom and Radius Tech's 2026 Private Cloud Outlook reports that 97% of IT decision-makers experience public cloud budget waste, driving an enterprise shift toward private cloud for production AI workloads to control costs and ensure data sovereignty.
Broadcom, in partnership with research firm Radius Tech, released its Private Cloud Outlook 2026: The AI Tipping Point report based on a global survey of 1,800 senior IT decision-makers. The findings reveal that as AI transitions into daily production environments, cloud cost management (31%) has surpassed security as the top concern. An overwhelming 97% of respondents reported waste in public cloud spending, with 52% estimating waste exceeding a quarter of their budget. Compounded by continuous GPU rentals and data egress fees, enterprises are increasingly pursuing workload repatriation to private clouds.
Key takeaways
- The survey found 97% of respondents identify public cloud waste, while public cloud adoption for AI inference dropped from 56% to 41% within a year.
- The move to private cloud is driven by the 3C framework (Cost, Complexity, Control), with 86% noting geopolitical and regulatory rules shape cloud strategies.
- Around 83% of enterprises are considering or executing workload repatriation to private clouds, and 43% of repatriating firms include AI models and inference.
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