The cloud computing landscape is set to thrive in 2025, with artificial intelligence (AI) playing a critical role in expanding Infrastructure-as-a-Service (IaaS), according to GlobalData, a leading data and analytics company.
Following robust growth in 2024, the IaaS sector is expected to continue expansion through 2025, with hyperscalers and cloud providers capitalizing on the increasing demand for processing and storage due to escalating growth in data volumes.
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Key Report Highlights
GlobalData’s report, titled, ‘2025 Enterprise Predictions: Cloud Reconsidered,’ highlighted that cost-containment and new regulations will be crucial factors in enterprise cloud decision-making in 2025.
Amy Larsen DeCarlo, Principal Analyst, Enterprise Technology and Services at GlobalData, noted that, despite economic uncertainty, the demand for increased processing power and storage is still largely being fueled by generative AI (GenAI) and synthetic AI. This increased processing power will consequently ensure hyperscalers and other cloud providers maintain their strong position. The byproduct of this surge in AI-powered applications will be a growing interest in edge computing, benefitting both hyperscalers and their partners.
Furthermore, cost concerns, especially for enterprise and public entities operating within the field, will significantly influence cloud investments this year.
Larsen DeCarlo emphasized that cloud providers must deliver solutions that help organizations refine their cloud implementations. “Organizations will advance their FinOps work internally, engaging individual IT operations teams with lines of business and finance to improve operational results and reduce expenses. The hyperscalers who deliver effective tools to support this work will gain a point of differentiation.”
The report also indicated that regulatory changes will drive organizations to re-evaluate their current implementations and adjust their deployments in public and private clouds.
Larsen DeCarlo concluded, “Hyperscalers have maintained a focus on developing vertically specific solutions for industries such as finance and healthcare. They will continue to build these out in 2025 while also expanding local infrastructure in regions, including the Middle East and Africa as well as Asia.”
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