The latest trends in cloud computing show that the cloud has become the backbone of modern IT, with Gartner predicting 90% of organizations will adopt hybrid cloud through 2027. As cloud computing industry trends continue to evolve, businesses must adapt to leverage the cloud's flexibility and cost-efficiency. Cloud services infrastructure spending has surpassed $1T globally in 2024. This expansion is driven by several cloud computing trends, including demand for new platforms and as-a-service offerings, particularly those powered by Artificial Intelligence. Looking ahead to 2025, the cloud field will be shaped by a delicate balance between public and private offerings, with AI capabilities, security considerations, and vendor dynamics driving organizations to make more nuanced choices about their cloud infrastructure rather than defaulting to public cloud solutions.
8 cloud computing trends to watch in 2025
A clear understanding of cloud computing trends that will drive the industry in 2025 will prepare you to adapt and innovate in constant change. The trends of cloud computing trends range from the adoption of hybrid and multi-cloud approaches to the integration of edge computing, the emergence of real-time cloud infrastructure, and the critical focus on cloud security. Among the top cloud computing trends, industry cloud platforms (ICPs), FinOps practices, sustainability initiatives, and the rise of GenAI supporting infrastructure are transforming the cloud landscape. According to Deloitte's survey, cloud investments can positively impact business operations, from core risk mitigation to generating new revenue streams and supporting sustainability goals.
Let’s explore the cloud technologies and areas expected to drive positive outcomes in 2025.
Rise of GenAI supporting infrastructure
According to David Linthicum of Deloitte, the cloud is poised to play a pivotal role in democratizing AI and unlocking its economic and social potential. Massive AI models, like the one powering ChatGPT, require vast data and computing resources, which are inaccessible to most businesses. However, cloud platforms are stepping in, offering AI-as-a-service and bringing this transformative technology within reach.
This cloud computing trend is driven by the rise of GenAI in the cloud and beyond. Businesses are transitioning from proof-of-concept to production systems, and 2025 will see them building the infrastructure to support this shift. This includes both new AI applications and existing ones infused with AI capabilities across diverse platforms-public clouds, data centers, edge computing, and mobile devices.
However, supporting GenAI's rise requires significant infrastructure adjustments. Sizing systems for GenAI involves scaling database storage for training data and accommodating structured and unstructured formats. Combining data before training often proves more efficient, and cloud platforms are likely to be the preferred battleground with their easy provisioning and scaling capabilities.
Additionally, GenAI demands different computing needs. GPUs, crucial for AI processing, are in high demand and often allocated. Traditional CPUs still play a role, though, and for many enterprises, specialized cloud services may be the easiest path to GenAI adoption. This AI boom will drive explosive growth for cloud providers in 2025. However, traditional computing and storage platforms won't be left behind. Many businesses, prioritizing security and cost-efficiency, may keep their productive AI systems on-premises. Ultimately, this rising tide of AI will lift all ships, benefiting both cloud and on-premises solutions.
The rise of RAG integration
Retrieval-augmented generation (RAG) services are poised to emerge as the next frontier in cloud computing trends. While 2024 saw cloud providers competing through AI infrastructure and foundation models (FMs), the focus is expected to shift significantly in 2025. The limitations of foundation models, particularly their tendencies toward hallucinations and accuracy issues, are driving this change.
Forrester predicts that major cloud providers will pivot towards RAG-based solutions as their primary differentiation strategy. These services will help build greater accuracy and reliability into generative AI offerings. This trend is expected to be so significant that every major hyperscale cloud provider will likely launch their own RAG-related solutions, marking a new phase in the evolution of cloud-based AI services.
Hybrid and multi-cloud adoption
One of the key cloud computing trends in 2025 is a shift towards ubiquitous computing: moving beyond the singular public cloud paradigm to leverage the most optimal platform for each workload and data type. According to Forbes, this evolution builds on the multi-cloud movement but expands the possibilities even further. This transformation reflects a deeper understanding that no single cloud solution fits all business needs, leading organizations to rethink their infrastructure strategies.
Shifting the focus beyond public clouds: Public clouds dominated computing for years. Yet, a new trend is emerging: ubiquitous and heterogeneous computing. Businesses are moving beyond singular platforms, instead considering all options and strategically placing workloads and data where they benefit the most. This includes leveraging multi-cloud environments, edge computing, on-premises infrastructure, and even industry-specific "microclouds."
Drivers and impacts: The shift beyond public clouds is fueled by falling hardware costs, high public cloud prices, and the quest for optimal performance and efficiency. In 2025, we'll see this materialize in repatriating some workloads to traditional data centers and embracing non-cloud platforms like mobile and edge computing. While this sacrifices some public cloud benefits, it allows businesses to maximize cost-effectiveness and leverage resources wherever they reside.
This trend signifies a more nuanced and decentralized future of computing, where businesses gain greater control, flexibility, and cost-effectiveness in managing their data and workloads.
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Edge computing integration
In 2025, the cloud's dominance as the sole computing environment will loosen as businesses look beyond centralized data centers and embrace a diverse ecosystem of resources. Lower hardware costs and the emergence of high-speed networks like 5G are empowering platforms like mobile and edge computing. This shift isn't about shunning the cloud but exploiting each data stream's most cost-effective and efficient option. Imagine sensors in factories, smart cameras in cities, and even wearables on our bodies processing data in real-time, reducing reliance on the cloud and unlocking robust, localized control. Even large venues and enterprises join the party, deploying edge servers to deliver content and manage data within their physical boundaries without relying on distant backhaul links. This rise of ubiquitous access and resources, both within and outside the cloud, signifies a new era of distributed computing, where businesses can truly leverage the power of data wherever it resides.
Real-time cloud infrastructure
Real-time cloud architecture is expected to be one of the prominent cloud computing trends in 2025. Businesses are no longer content with waiting for insights-they crave real-time data processing and action. This shift mirrors how we consume information and entertainment, embracing streaming services like Netflix and Spotify for their instant gratification. To keep pace, cloud technology needs to evolve, too.
This brings us to real-time cloud infrastructure: a revolutionary architecture designed for dynamic, immediate access to resources and services. This is achieved through a powerful combination of technologies:
- Serverless computing: Eliminates server management, allowing your code to run instantly upon the trigger, perfect for real-time processing.
- Edge computing: Brings data processing closer to the source, reducing latency and bandwidth usage for time-sensitive applications.
- Flash and solid-state storage: Delivers unparalleled data access speeds, empowering real-time analysis and decision-making.
One of the top trends in cloud computing, real-time cloud architecture offers several key advantages. These include dynamic scaling to handle fluctuating data loads, immediate responses for enhanced client service, and swift decision-making powered by real-time insights. This empowers organizations to embrace innovation, streamline operations through digitizing essential systems, and potentially gain efficiency and resource savings. For instance, it can enable early anomaly detection in critical sectors like transportation, leading to increased safety and accelerated technology adoption.
Cloud security
The increasing adoption of cloud computing brings significant benefits and amplifies existing security risks. In 2025, three critical cloud computing technology trends will mitigate these risks and ensure continued trust in the cloud: data encryption, robust authentication protocols, and comprehensive disaster recovery plans.
Data encryption: With cyber threats rising, data encryption safeguards sensitive information stored in the cloud. By converting data into an unreadable format, unauthorized parties are effectively locked out, even if they gain access to cloud storage systems. As sophisticated hacking techniques emerge, advanced encryption algorithms, including those resistant to potential quantum computing threats, will be increasingly sought after.
Authentication: While encryption protects data at rest, robust authentication mechanisms control access to cloud resources. Multi-factor authentication (MFA) will become the new standard, moving beyond traditional password-based verification to leverage additional factors such as biometric verification, voice recognition, and user behavior analysis. This layered approach substantially reduces the risk of successful social engineering or brute-force attacks.
Disaster recovery: Even with robust security measures, unforeseen events like natural disasters or hardware malfunctions can disrupt cloud operations. Disaster recovery plans provide a crucial safety net, ensuring business continuity and data protection. Geographically dispersed cloud infrastructure, automated data replication, and seamless failover systems will be essential for minimizing downtime and data loss.
Recognizing that cloud security is not solely cloud providers' responsibility is essential. Businesses must actively engage in security best practices, including conducting regular vulnerability assessments, implementing employee training programs, and staying informed about the latest threats and mitigation strategies. Collaboration and transparency between cloud providers and their customers will build trust and foster a secure cloud ecosystem.
Serverless computing
Serverless computing has made a strong comeback after its initial hype and subsequent decline around 2020. This resurgence is driven by a clearer definition - now understood as a software environment that handles deployment complexity while letting developers focus purely on code. It's further supported by proven enterprise success stories that extend beyond basic development cycles.
The ecosystem has evolved from simple Function-as-a-Service (FaaS) to include comprehensive data and integration services. Three key trends are shaping its future: the shift to flexible turnkey cloud services, the natural fit with AI workloads due to their on-demand nature, and the emergence of WebAssembly (Wasm) enabling near-instant deployment. Additionally, we're seeing a convergence of edge and serverless development, breaking down the traditional barrier between public cloud data centers and edge providers.
Modern serverless platforms now offer automatic scaling, millisecond billing, and event-driven communication, alongside extended capabilities in storage, messaging, observability, and security. This evolution positions serverless as a core technology in the cloud-native landscape rather than a niche solution.
Read more: Top cloud security trends to protect your business in 2024
Keeping the cloud sustainable
The drive towards sustainability remains a top contender among cloud computing trends in 2025, with an increasing focus on eco-friendly cloud solutions. All major cloud service providers have committed to achieving net-zero emissions, extending these goals to their operations and assisting their customers in reducing their carbon footprint. Amazon, for instance, has set a target to achieve zero emissions by 2040, while Microsoft is striving to achieve this goal a decade earlier. In addition to their emission reduction commitments, Amazon, Microsoft, and Google have all articulated their intent to derive 100% of their operational energy from renewable sources. While reaching environmental goals might be a work in progress, the push toward environmentally responsible and sustainable cloud is expected to remain one of the most important industry trends in cloud computing in 2025.
Cloud-powered technologies like AI, ML, and IoT can significantly accelerate and catalyze the decarbonization process. Cloud technologies can reduce the cost and time required to implement various decarbonization initiatives by 2-10%. These technologies can decrease up to 32 metric gigatons of CO2 equivalent (GtCO2e) by 2050 (about half of what's needed to reach net zero by 2050). Manufacturing and transportation stand to benefit the most from cloud-powered decarbonization solutions.
Keep reading: How to find top cloud software engineers to boost your expertise
Wrap-up
2025 promises to be a year of transformative progress for cloud computing. The eight cloud computing trends explored here showcase an industry embracing flexibility, efficiency, and innovation. From the diverse ecosystem of hybrid and edge computing to the democratization of AI through GenAI-ready infrastructure, these trends in cloud computing offer businesses opportunities to optimize operations, unlock new potential, and navigate the increasingly dynamic landscape of data and technology. By adopting these trends and adapting their strategies accordingly, businesses can weather the changes and thrive in the dynamic cloud-powered future.
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