Seven Key Cloud Predictions for 2025

The cloud plays a large part in business operations, especially with the increase in hybrid and remote employees. Below we compiled cloud predictions from six companies for you to consider as you head into the new year.

1. Cloud Optimization Will Shift from Cost to Risk Mitigation

Enterprises will increasingly view cloud infrastructure as a tool for risk mitigation rather than just a means to cut costs. As organizations balance hybrid infrastructures with regulatory demands and the need for resilient systems, they’ll focus on creating secure environments that safeguard data, support AI-driven operations, and withstand unpredictable outages and cyber threats. Standards like DORA (DevOps Research and Assessment) will play a crucial role in guiding companies in establishing reliable, secure, and efficient cloud architectures that prioritize resilience and reduce operational risks across complex, distributed environments. – Mehdi Daoudi, CEO at Catchpoint

2. Hybrid Multi-Cloud Infrastructure Will be Standard, Supported by Data Observability

 In 2025, hybrid multi-cloud environments will become the standard for data-driven enterprises, optimizing security, privacy, and cost management. Data observability will be essential for ensuring seamless operations and unified visibility across these diverse infrastructures, helping organizations manage multi-cloud and on-premises data assets with enhanced resilience. – Rohit Choudhary, Co-founder and CEO at Acceldata

3. Interfacing at The Edge Power Consumption Issues

Power consumption from inferencing at the edge will become an issue. The projected energy demand in the US is expected to double in the next 4 years, to roughly 880 TW. This is likely understating the growth if appropriate optimizations are not made to power usage and consumption. And contrary to popular perception, inferencing will be the true behemoth of power consumption, not just training. – Induprakas Keri – SVP and GM of Hybrid Multi-Cloud at Nutanix

4. Cloud PC Adoption Surges as Costs Decline 

The cost of Cloud PC solutions will drop in 2025, making them more accessible for enterprises of all sizes. Cloud PC’s simplicity in deployment and management, combined with its ability to offer a secure, flexible experience across diverse devices, will solidify its dominance over traditional VDI. IT teams will embrace these solutions to handle increasingly complex hybrid environments efficiently. The recent release of Microsoft Link will only further highlight that Windows belongs in the cloud. With other virtualization vendors increasing costs, DaaS will start to offer more cost-effective alternatives…cheaper to run, but cheaper to deploy and maintain.  –   Simon Townsend, Senior Vice President of Marketing & Office of the CTO at ControlUp

5. 2025 Will Be a Turning Point for Cloud Infrastructure

In 2025 many businesses will reevaluate their reliance on large, traditional cloud providers. Companies will increasingly seek out cloud solutions that prioritize flexibility, customized support, and a commitment to transparency. This shift will be fueled by mounting dissatisfaction with the opaque policies and restrictive practices of some major providers, which have come under fire from both customers and regulators. 

At the same time, the adoption of distributed cloud models will accelerate. Distributing cloud infrastructure will allow businesses to deploy computing power closer to their users and devices, improving performance, reducing concentration risk, and ensuring compliance with region-specific laws. By localizing data storage and processing, companies can address regulatory demands while building trust with customers through enhanced control over their operations. The combination of these factors will drive a significant transformation in how organizations think about the cloud, both presently and in the future. – Jay Jenkins, CTO, Cloud Computing at Akamai

6. AI Governance Will Make Cloud Management a Matter of Compliance 

As AI becomes integral to business operations, governance frameworks will move from voluntary to mandatory, with regulations shaping cloud usage and sustainability efforts.  

• Sustainability Requirements: New regulations will mandate transparency in carbon footprints, renewable energy use, and physical and virtual resource consumption in data centers.  

• Operational Transparency: Businesses will need clear visibility into AI decision-making, SaaS utilization, and hybrid cloud efficiency to ensure compliance.  

Take Action:  Adopt transparency-focused tools for cloud management, including GreenOps to optimize environmental impacts. Build AI governance into broader IT strategies to prepare for regulatory scrutiny while maintaining operational flexibility.   – Chris Ortbals, Chief Product Officer at Tangoe 

7. Hybrid Cloud Adoption Will Support AI Expansion 

AI workloads are pushing organizations to adopt hybrid cloud models that balance the scalability of public cloud with the control of on-premises systems. Enterprises will increasingly look to professional services to optimize these hybrid environments, ensuring cost efficiency, security, and performance. Migration strategies, workload placement, and compliance considerations will be critical focus areas. Providers who can demonstrate expertise in integrating AI with hybrid cloud infrastructure will become essential partners as organizations scale their AI capabilities. – George Carter, Senior Vice President, Professional Services at Verinext

 

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