With more organizations migrating their IT infrastructure to the cloud platforms, it is vital to understand what it means and how cloud transformation can help a business. Here, we’ll discuss the biggest cloud transformation trends in 2025.
Many organizations of various sizes are investing in cloud transformation solutions to revamp their business processes and benefit from cloud-based models to increase efficiency, productivity, and revenue. Gartner states global cloud computing spending will likely touch $679 billion.
Both public and private clouds are in demand. Additionally, businesses opt for a multi-cloud strategy to streamline their operations and enhance overall performance. Statistics show that over 70% of enterprises will use industry cloud platforms by 2027. While almost 80% of businesses use multiple public clouds, 60% use a minimum of one private cloud.
So, what are the recent trends in cloud computing? How is cloud transformation influencing the global markets? What do we need to know about cloud digital transformation in an enterprise?
Read on to know more!
Cloud transformation is the process of migrating or transferring the business systems, IT infrastructure, data, processes, etc., from on-premises to a remote cloud platform. It focuses on scalability, flexibility, and agility to ensure that the technologies used align with the business requirements and the latest market trends. For example, outdated legacy systems are modernized or replaced by lighter cloud-based applications for better usability and faster results.
There are many trends in the cloud computing market, which directly and indirectly influence how businesses use the latest technologies to achieve their goals. According to Mordor Intelligence, the cloud computing market size is expected to be $0.68 trillion. It is predicted to grow at a CAGR (compound annual growth rate) of 16.40% to touch $1.44 trillion by 2029.
Serverless computing is a model where developers can build and deploy application code without managing backend servers. It is also called function as a service (FaaS) where cloud service providers maintain the servers. The term serverless doesn’t imply the lack of a server but indicates that the server is not hosted on-premises in an organization. This reduces the cost of building and upgrading the IT infrastructure in the enterprise and promotes greater scalability. It helps businesses be ready to tackle future developments quickly and efficiently.
While AI and ML technologies are already being adopted by many businesses, the trend will continue in 2025 and beyond. Tech giants like Google, IBM, etc., are coming up with new products and services that will boost productivity in organizations and empower employees to use advanced tools. AI and ML are a part of cloud transformation and help in streamlining various activities in different departments, verticals, and industries. Be it procurement or customer service, AI applications can be used for analytics, automation, and more.
Edge computing is another trend in cloud transformation services. It aims to reduce latency and improve data processing speed. In this method, data storage and computing tools are brought closer to the data source, or all applications are hosted on the same server. This allows real-time analytics and report generation as applications run faster. For example, manufacturers can benefit from edge computing by setting up analytical tools near IoT (Internet of Things) devices or in the same network.
Cloud transformation doesn’t mean a business has to move all its systems onto a single cloud. In fact, many organizations prefer multi-cloud architecture to save costs and increase efficiency. By using individual apps hosted on the respective vendor cloud servers, businesses can reduce the costs needed to build everything from scratch. Furthermore, the responsibility for data security and privacy lies with the vendor. Large enterprises use a combination of public and private clouds to spread the workflows on different platforms according to their priorities and security requirements.
Sustainability is a hot topic in many industries. How can one make the IT industry also sustainable? That’s where green computing comes into the picture. Sustainable technologies align with environmental protection goals and can help businesses reduce their consumption of natural resources without affecting their daily activities. The aim is to reduce carbon footprint and create a circular network for IT-based energy consumption.
Industry cloud platforms (ICPs) combine the capabilities of software, platform, and infrastructure as a service to provide customized solutions based the business requirements. This creates greater flexibility for organizations to handle any range of workloads without worrying about system crashes or unexpected downtime. Oracle Fusion Cloud and SAP DMC SAP Leonardo are some examples of industry cloud platforms. Businesses from each industry can get services that are tailored to their sector as well as the specific requirements.
When creating a strategy for digital transformation, businesses should include disaster recovery and data backup on the list. With many organizations migrating their systems to cloud platforms, it is vital to understand the importance of securing the data and applications from cyberattacks or natural disasters. Fortunately, the leading cloud service providers offer disaster recovery tools to quickly retrieve lost/ corrupted business data and apps to restart the processes without wasting too much time. Instead of worrying about data loss, the organization can revert to the latest previous update and take it from there.
IoT or the Internet of Things are devices like sensors, connectors, etc., that extract data from the source and exchange it with other devices in the network. The data collected by IoT devices is sent to analytical tools to derive actionable insights. IoT has an important role in industries like manufacturing, mining, oil and gas, chemical, pharma, etc. IoT is a combination of different tools and technologies that collect varied data like temperature, movement, equipment motion, etc.
While effective cloud transformation processes are one aspect to consider, security is another major factor. The advancements in technology have also made it easier for hackers to target various businesses (and individuals) around the world. Statistics show that there has been a 75% increase in cloud intrusions. This shows the necessity of investing in proper security systems to protect business data and apps on the cloud. Data encryption, authorized access, remote backup, etc., are essential to ensure businesses secure their IT infrastructure and make it resilient in resisting cyberattacks.
Kubernetes and Docker have gained popularity in recent times. Kubernetes is an open-source system that automates the deployment, management, and scaling of containerized applications. It is portable, extensible, and highly useful to manage various business apps. Docker is a container app development tool that focuses on simplifying the process and can bring multiple container applications together. These are run on cloud platforms for greater efficiency. Together, Kubernetes and Docker can change how a business deploys cloud apps. They make the systems more scale and easy to use.
Blockchain technology has become popular thanks to cryptocurrency. It is a decentralized and digitized immutable ledger that records transactions while ensuring data security and anonymity. While blockchain is the core of crypto and decentralized finance (DeFi) industries, it can also be used in supply chain management, internal account management, invoice tracking and payments, etc. Cloud service providers offer blockchain as a service (BaaS) solutions for businesses to build and deploy the technology in their organizations quickly and for lower costs.
Automation has been one of the important cloud transformation trends for a while. That’s because it saves time, money, and other resources for the business. It allows employees to complete more work in less time without compromising quality. Automation can be implemented at various stages in an enterprise. It can be used in production, invoice processing, customer service, marketing, etc. By investing in cloud solutions, startups, and global enterprises can take advantage of automation and increase their performance.
The gaming industry is quickly adopting cloud transformation solutions. Cloud gaming or gaming-on-demand is where the games are hosted on remote servers and run on the users’ devices. This reduces the need for gaming hardware like consoles, high-end computers, etc. It makes even the famous games easily accessible to users who don’t have the required hardware. They can directly access and play the games on their smartphones or tablets. The remote server has the necessary processors to seamlessly stream the audiovisuals and ensure a high gaming experience.
Software applications are usually built by writing extensive code and debugging it to ensure there are no glitches or errors. This is a time-consuming process and requires technical expertise. However, a new trend in cloud transformation is the increase in apps that have very little code or no code at all. Businesses can build no-code apps on the cloud platforms of service providers. Drag-and-drop functionality is used to customize the apps. It takes only a few minutes or hours to deploy the application instead of waiting for weeks and months. AI is also used to make no-code and low-code apps more efficient and user-friendly.
Businesses would be familiar with DevOps. DevSecOps extends the philosophy of DevOps by adding security practices to the set. In this, experts work on what’s called Security as a Code where they collaborate with clients to ensure that the IT infrastructure is secure at all times. A security team may also be specially created for this purpose. Instead of making security an afterthought, it is made an integral part of the development process. Once the setup is in place, the recurring processes like 24*7 monitoring are automated.
Cloud-native apps are software tools built on a specific cloud platform to take maximum advantage of its features. Different components/ elements in the ecosystem are used to build and deploy the app. While everything belongs to the same cloud, it is also very scalable, agile, quick, reliable, and more efficient than apps that are migrated to the cloud platform. Cloud native transformation allows businesses to fix issues or upgrade the components independently so that the software continues to work without interruptions.
Service mesh is another cloud transformation trend that’s reaching more businesses in recent times. It is a technology that offers a network of microservices on behalf of the organizations. Service mesh can be termed as a software layer that manages all communications occurring between the different apps on the server. When apps are scaled, it becomes easier to manage them by investing in a service mesh. It takes care of logging, tracking, monitoring, etc., across multiple applications in the network.
Generative AI or large language models(LLMs) development is the latest trend in the IT industry. According to Gartner, over 80% of enterprises will use generative AI in some form by 2026. While AI can automate simple tasks, genAI can handle complex actions and even create content that matches the input requirements. While there are still some ethical and legal concerns over the use of generative AI, this technology is here to stay. It can benefit a business in many ways, such as brainstorming new ideas, content creation, editing, summarization, debugging, etc. That said, organizations should balance the positives and negatives of generative AI to optimize returns.
Real-time cloud infrastructure is a major cloud transformation trend as many organizations want immediate analytics and insights to make efficient business decisions. For this, service providers use technologies like edge computing, serverless computing, service mesh, etc., to eliminate unwanted layers and accelerate various business processes. With increasing demand for real-time insights, the adoption of real-time cloud infrastructure will increase in parallel.
Platform engineering is a new trend in cloud transformation. It deals with the development and operations of self-servicing internal development platforms in an enterprise. Platform engineering includes the design, development, deployment, and maintenance of the organization’s core IT infrastructure so that it remains scalable, quick, agile, and flexible to support the changing business requirements. This makes it easier to deploy a varied range of apps and services quickly and efficiently.
Simplified cloud computing is similar to no-code and low-code app development. This trend is catching up as businesses find it hard to navigate through the complex networks, connections, and technologies in cloud transformation. The use of NLP (natural language processing) makes it even simpler to manage cloud computing in an organization. However, partnering with expert service providers is essential to enjoy all the benefits of cloud technologies.
The cloud transformation journey also includes digital transformation and vice versa. Cloud plays a major role in enabling businesses to transform their traditional and analog systems into digital models. By integrating digital transformation and cloud computing, businesses can create a comprehensive strategy to change their processes and enhance customer experience. Cloud digital transformation provides reliable and easily accessible solutions for startups, SMBs, and multinational organizations to secure their data, automate workflows, optimize operations, and make data-driven decisions in real-time.
Cloud transformation services based on open infrastructure provide greater scalability, flexibility, and freedom. Businesses have more chances to experiment and innovate with new products/ services. It helps in setting up a robust network where the applications can be customized to suit the organizations’ requirements.
Cloud transformation is a multi-stage process that takes several weeks for strategizing, building, testing, deploying, integrating, and customizing the setup. While service providers have different approaches to the process, cloud transformation can be broadly divided into three stages such as the following:
Digital transformation cloud adoption solutions are widely categorized into three types. These are also called cloud service models.
IaaS is the largest model where the entire IT infrastructure of the business (networks, databases, applications, workflows, etc.) is hosted on a cloud platform. It provides greater flexibility and control over the usage of IT resources.
PaaS allows businesses to simplify the IT infrastructure on-premises by allowing direct connections to cloud-based platforms. This helps the IT experts focus on the deployment and management of various apps without worrying about how to manage or maintain them (which is handled by the vendors).
SaaS is where the software applications/ tools are hosted on the vendor’s cloud. Businesses can subscribe to use the software and its features without downloading it on the computers or systems in the office. The apps are web-based and work on multiple devices irrespective of where the user is located. Additionally, businesses only pay for what they use.
A few popular examples of cloud solutions are as follows:
When developing the cloud transformation strategy, organizations should talk to expert service providers and determine the best model for their business. While there are many examples of cloud solutions that are popular and used by various enterprises, not all of them are useful for every business. Cloud transformation service providers will help make the right decision based on the organization’s vision, mission, objectives, and long-term goals.
The cloud is a great solution for startups, emerging businesses, SMBs, MSMEs, and large enterprises to survive market competition and increase ROI. It allows organizations to adapt to new technologies and explore more opportunities to boost their business. Choose a reliable company to provide tailored digital transformation services to streamline operations, optimize resources, enhance customer service, and improve revenue by transforming the business using cloud solutions.
Fact checked by –
Akansha Rani ~ Content Creator & Copy Writer
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