According to recent data, global spending on private cloud hardware, software and support services hit $51.8 billion last year and is on track to reach $66.4 billion by 2027.

Steve Loyd, partner marketing manager at HPE, says this cloud repatriation shift reflects a growing dissatisfaction with public cloud models due to unpredictable costs, latency concerns and a lack of control or ability to customize security and compliance policies.

Many organizations are also experiencing fatigue from managing DIY hybrid environments and aging legacy infrastructure, which often requires significant manual oversight, specialized skills and constant patching.

Three Reasons Why Businesses Are Opting for Private Cloud

There are three factors that contribute to increasing private cloud investment, says Loyd.

The first is a desire for more consistency. Private clouds have long been used to store critical data that must comply with strict handling and security requirements, whereas public clouds provide the scalability necessary to handle the big data analytics that drive corporate decision-making. “Companies like the public cloud,” says Loyd, “but they don’t want to give their data to another company.”

This has led to the creation of multicloud strategies where companies put some data on-premises and some in the cloud, each with its own set of functions and toolsets. But too often this means that organizations add complexity and lose continuity. At the same time, many IT teams are...