Cloud Repatriation Trend Signals Major Shift in Enterprise Strategy, Security Concerns Lead the Way

A new white paper by GTT reveals a significant shift in enterprise cloud strategy, with organizations increasingly comparing private and public cloud environments for optimal deployment. The study, released July 8, 2025, highlights security and control as primary drivers of this transformation.

Security Concerns Reshape Cloud Landscape

Private cloud spending is growing at double the rate of public cloud investments for organizations in the under-$10 million spending bracket. Enhanced security and privacy emerged as the dominant factor, with 56% of respondents citing it as their primary reason for private cloud adoption.

James Karimi, CIO/CISO at GTT, emphasizes the evolving security landscape: "As the world is increasingly interconnected between clouds, data protection is a global concern. Everyone shares the responsibility of securing cyberspace far beyond an IT function."

Organizations exploring cloud solutions are increasingly evaluating the comprehensive benefits of cloud computing for their business operations.

AI Adoption Introduces New Security Challenges

The integration of artificial intelligence is adding complexity to cloud strategies, particularly regarding data security. The study reveals a troubling statistic: approximately 40-45% of employees have exposed sensitive enterprise data to public AI models. This finding underscores the urgent need for stronger data governance protocols.

Organizations face a critical decision when deploying AI models: either relocate private data to where AI models are hosted or move the models to where data resides. The report indicates that 50% of respondents consider secure, partitioned AI testing a major factor in their private cloud usage decisions.

Many enterprises are now implementing hybrid cloud solutions to maximize flexibility and security.

Migration Challenges and the Rise of Managed Services

The path to cloud optimization remains challenging, with only 5% of organizations reporting problem-free cloud migrations. Technical skills gaps and data migration complexities continue to pose significant hurdles. This reality has led to increased reliance on Managed Service Providers (MSPs), with security (92%) and cloud migration (89%) being their most valued services.

According to recent research from Gartner, 75% of organizations are pursuing a hybrid or multi-cloud strategy to address their diverse needs and security requirements.

The findings suggest a maturing cloud market where organizations are prioritizing security and control over pure cost savings, marking a significant evolution in enterprise cloud strategy. As businesses navigate this complex landscape, the focus on robust security measures and careful data management becomes increasingly critical.