Research: Enterprise AI Workloads Are Tipping Towards Private Cloud
Broadcom is framing its most current personal cloud research around what it calls an enterprise AI “tipping point,” saying production AI workloads are altering how organizations examine cloud architecture, expense, security, and governance.
The company’s Personal Cloud Outlook 2026 report, entitled “The AI Tipping Point,” is based on an international study of 1,800 senior IT decision-makers throughout the Americas, Europe and Asia-Pacific. In a news statement, Broadcom asserted that the AI experimentation phase is over and that personal cloud is where business AI workloads are being released for security and scale. The company stated the shift is being shaped by “expenses, intricacy, and control” as business move AI workloads into production.
Production AI Shifts Toward Personal Cloud
Broadcom said 56% of business surveyed are running or planning to run production AI inferencing on private cloud. The business likewise stated public cloud usage for the very same workloads fell 15 percentage points year over year, from 56% to 41%.
Click on image for larger view.] Where AI-based Applications or Workloads Currently Run(source: Broadcom). The report says public cloud remains part of enterprise IT technique for experimentation, elastic capability, and specialized services. However Broadcom stated AI production work introduce sustained compute demand, delicate information flows, governance requirements, and efficiency expectations that can expose limits in a purely public cloud technique.
The shift is also shown in repatriation information. Broadcom said 83% of business are considering or have currently repatriated work from public cloud to personal cloud, and 50% have currently repatriated some workloads. In 2025, the corresponding figures were 69% thinking about or currently repatriating and 35% currently having done so.
AI looked like a repatriation category for the very first time in the 2026 research study. Broadcom stated 43% of companies repatriating work are moving AI training, big language models, and reasoning from public cloud to personal cloud.
In a Broadcom post on the report, Prashanth Shenoy, vice president of marketing for the VMware Cloud Structure Division at Broadcom, composed that “as enterprises aim to scale, the direction has actually altered.” The exact same post said enterprise AI “has discovered its infrastructure home. And it is private cloud.”
Cost Replaces Security as Top Public Cloud Issue
Broadcom stated expense has overtaken security as the top public cloud concern in the 2026 study. According to the report, 31% of respondents cited cost management as a leading public cloud obstacle, up from 26% in 2025.
The report likewise said 97% of surveyed IT leaders think some portion of their public cloud spend is squandered, while 52% stated that waste goes beyond 25%. Broadcom linked those findings to AI infrastructure pressures, including compute, storage, bandwidth, GPU rates, data motion charges, and unpredictable usage patterns.