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Private cloud providers are experiencing a resurgence in popularity due to the uncertainties in cost and fears of AI data leaks, prompting CIOs to reconsider their cloud strategies. The shift towards a hybrid mix of public and private cloud is seen as the long-term solution to balance experimentation, cost control, and data security in the AI era. Enterprises are increasingly recognizing the need for a hybrid model of cloud and data center strategy to support AI workloads and contain costs.
Private cloud platforms like Dell APEX and HPE GreenLake, equipped with generative AI support, are emerging as key solutions for enterprise customers looking to address AI challenges. The rise of generative AI is driving the need for private clouds to ensure sensitive corporate data remains secure and does not end up in public AI models. Analysts predict a significant increase in private cloud spending, with IDC forecasting a substantial growth in global spending on private cloud services and infrastructure.
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