Predictions and forecasts for the Cloud landscape in 2025

Cloud technology has changed the global business landscape. It has redefined connectivity like never before — from business communication to healthcare, and from entertainment to education. But with the leaps and bounds in this technological space, change is imminent.

What, then, does 2025 hold for us, up in the cloud?

We decided to ask our experts across the Cloud portfolio and CTO teams. In this discussion, we bring to you the best of thought leadership from Ashok Ramachandran and Willie Devit — Eviden’s CTO experts. We asked for insights into tectonic shifts in cloud that emerged in 2024, upcoming challenges, changes and patterns in 2025, and business preferences and strategies.

Take a look at what they had to share:

According to you, what were the top 3 cloud trends in 2024 that have changed the landscape? Were these anticipated or were they a surprise?

Ashok: The top 3 trends in 2024 were AI and ML integration, a surge in edge computing and the transformative power of multi-cloud and hybrid cloud strategies.

Let me explain these a bit more.

Firstly, AI (particularly GenAI) has reshaped business operations and customer experience to a great extent. By enabling deep, business-centric automation along with data-driven decision-making, the scale and speed of AI adoption has indeed surprised many, given its broad industry appeal and rapid deployment.

Next, the surge in edge computing was driven by IoT and the need for more real-time data processing, closer to the business. This trend aligned with expectations but outpaced in areas like Edge AI, which improved latency and enabled data processing closer to the source.

Lastly, multi-cloud and hybrid cloud strategies were an anticipated but transformative trend. While these strategies helped organizations mitigate vendor lock-in and enhance resilience, the demand for flexibility across cloud ecosystems is what created a significant shift.

Now, were they expected? Mostly, yes. However, the adoption speed and impact of AI and Edge AI were quicker than forecasted, reflecting the urgency from businesses to leverage immediate operational benefits, drive down costs and create a competitive edge.

Willie: I agree with Ashok on what the three main contenders were, but in a different order.

1. The rise of multi-cloud strategies
2. Edge computing and its integration with cloud
3. AI and ML integration in cloud platforms

As businesses strive for greater agility and resilience, multi-cloud strategies have emerged as the dominant trend in 2024.

Do you see these continuing into 2025? Or are there other challenges and changes on the horizon? Your predictions, please.

Ashok: Oh yes, these 2024 trends are going to continue well into 2025, but there will be three new trends too:

1.  AI and Edge evolution: In the areas of self-optimizing (auto diagnosis and auto remediation) infrastructure and automation, AI is expected to continue to go strong. However, Edge AI’s role will expand with more sophisticated, localized processing which leads us to the next point below.
2. Data sovereignty and governance: As regulations evolve and/or tighten globally, managing data across countries and continental jurisdictions are expected to intensify. This is where Sovereign clouds and tailored compliance solutions would rise in importance.
3. Sustainability as a core metric: Cloud’s environmental footprint will be a top priority in 2025, making Green Cloud essential for organizations aligning with global sustainability goals.

However, these will be laced with challenges.

Willie: Definitely, the trends that emerged in 2024 will continue in 2025. Moreover, I see a heavy reliance on cloud-native technologies and microservices.

How is AI altering the dynamics for public and private cloud providers? Will this change in 2025?

Ashok: AI has already been the cause of a dynamic shift and cloud providers are constantly engaged in a cost vs performance debate. AI is a key differentiator for public and private cloud providers, embedding capabilities that enhance automation, predictive scaling, and threat detection. Take the examples of AI TRISM, ZTaaS, and AI powered XDR.

Cloud service providers and GSIs are tuning and optimizing their infrastructure for AI workloads, pushing for cost-effective models and better support for high-performance computing (HPC). This is key when dealing with low latency workloads and research-based activities.

Looking ahead into 2025, AI-optimized infrastructure will become a competitive standard. With self-diagnosing and self-healing capabilities, AI-driven cloud services will increase in demand, challenging service providers and GSIs to balance cost-efficiency with high-performance AI.

Willie: In 2025, I’m predicting the cloud players will shift their focus to retrieval-augmented generation (RAG) services as a form of differentiation to build accuracy into their generative AI services.

How are businesses gearing up to adapt to or adopt new cloud strategies in the future? How will this impact their providers/vendors and end-users?

Ashok: We have noticed two adaptation strategies across enterprises, service provides and GSIs:

• Investments in talent and training: Companies are prioritizing upskilling to bridge the talent gap, especially in AI and data governance.
• Focus on data and governance: A clear shift toward compliance and governance frameworks indicates businesses are preparing to meet stringent regulations and build consumer trust.

Now, GSIs like Eviden must offer compliance-centric solutions coupled with robust and scalable AI capabilities to meet evolving client demands for secure, agile, and future-ready platforms. In the long run, this shift promises faster, more secure, and adaptable digital services for enterprises and their end-users, enhancing overall experience and trust.

Willie: The new cloud strategies are geared up to have a profound impact on providers and vendors. With increased competition and innovation, providers and vendors need to provide specialized services, competitive pricing, and enhanced security features. With a shift toward service-oriented models, they need to adopt SaaS, PaaS and IaaS,  and consumption-based pricing to meet evolving customer demands. To cater to the rising need for flexibility and customization, providers must deliver adaptable, scalable solutions that cater to diverse business needs. And as they focus on sustainability, vendors must align with clients’ sustainability goals, for example renewable energy-powered infrastructure. But most importantly, when it comes to talent management, they need to be able to retain and attract top talent to address this new paradigm shift.

These changes will impact end-users slightly differently. It provides an improved user experience with faster services, more reliable applications, and AI-enhanced functionalities. Applications powered by AI and advanced analytics offer a more personalized user experience. Users gain stronger data protection and compliance features, reducing risks of breaches or violations.

As businesses increasingly face sovereignty, cost, and data security challenges, what is your advice as a cloud expert?

Ashok: I have three pieces of advice for leaders navigating these key challenges:

• Embrace sovereign cloud solutions. Invest in region-specific solutions that address data sovereignty, supporting compliance without sacrificing performance.
• Optimize cost management by implementing GreenOps or FinOps practices that balance performance with environmental impact and cost.
• Prioritize Zero Trust security. With rising cyber threats, ensure security-by-design across all layers, making Zero Trust a fundamental approach to protect against breaches.

 The focus should be on sustainable, secure, and locally compliant solutions to drive long-term cloud ROI while maintaining customer trust.

Willie: As a leader, you need to consider five key aspects here:

1. Align your business with the experts. Collaborate with local providers who offer sovereignty-aligned solutions and strong regional support.
2. Engage professional services teams like Eviden for advisory, migration, modernization, and compliance around sovereignty.
3. Foster a culture of continuous cloud governance. Develop governance policies that define cloud usage, cost management, security, and compliance requirements.
4. Build cost optimization through FinOps.
5. Apply Zero Trust — a hot topic for security.

How can CIOs merge business innovation and cloud strategies for sustainability and growth?

 Ashok: CIOs and other CxO leaders are realizing the importance of merging their innovation teams and cloud teams. Here’s how they can accelerate their journeys:   

• Encourage cloud-native and serverless adoption. These architectures essentially support agility and cost effectiveness. Additionally, serverless reduces resource usage for on-demand services.
• Integrate sustainability goals in cloud design. Using GreenOps practices and prioritizing energy efficient cloud infrastructure and applications contributes to long term sustainability goals.
• Focus on industry-specific cloud models. Adopting industry tailored clouds supports faster innovation and improved alignment with specific compliance needs.

Merging these strategies helps CIOs create agile, eco-friendly cloud environments that not only foster growth but also establish a strong market position through sustainability.

Willie: Balancing cloud and innovation for sustainability and business growth is not an option anymore. It’s an imperative. This is why this 6-step guide can help them get there faster.

1. Prioritize cloud-driven innovation with business outcomes.
2. Create a Cloud Innovation framework, complete with Agile processes, innovation hubs, and partnerships or startups.
3. Focus on data-driven decision-making.
4. Build a scalable IT operating model.
5. Align your cloud strategy with long-term growth goals. Create vertical-specific cloud innovation revenue streams.
6. Ensure you track, measure and communicate your success.