By Aaron Wadsworth, General Manager at BitTitan

As we move toward 2025, it's important for organizations to create strong migration plans as they shift to modern cloud platforms. Global IT spending is expected to reach $5.74 trillion-a 9.3% increase from 2024-putting pressure on businesses to merge users and data, adopt cloud solutions and meet stricter data regulations. Cloud migration is no longer a convenience; it is a business necessity driven by mergers and acquisitions, regulatory requirements and the demand for scalability and advanced technology integration. Let's look at the predicted key cloud migration trends that will shape IT in 2025.

Increased M&A Activity Will Drive Cloud Migrations

The 2025 M&A landscape is set for expansion, driven by better economic conditions, easier access to financing and new technology. Lower interest rates make it easier for companies to make big acquisitions, increasing the need for managed service provider (MSP) services. This growth and the push for digital transformation are leading companies to merge and combine their IT systems.

IT integration is key in M&A deals because it helps the merged companies collaborate smoothly, share data and communicate effectively. Without proper IT integration, disruptions, security issues and inefficiencies can occur that could hurt the merger's success.

Currently, more tech companies are merging, private equity firms are showing more interest, and there's a big focus on acquiring cybersecurity firms and making international deals. Companies are increasingly focusing on digital transformation, moving to the cloud and integrating specialized solutions, all while adapting to remote and hybrid work setups. Moving to the cloud has become essential for businesses wanting to stay competitive, with large enterprises aiming to have 60% of their systems in the cloud by 2025.

Proper IT integration boosts deal value by improving scalability, ensuring compliance and supporting long-term growth. MSPs with expertise in handling these complex post-merger IT systems are in a good position to stand out and take advantage of the increasing demand in this area.

Tenant-to-Tenant Migrations as the New Norm

Sooner than expected, the cloud will be the overwhelming computing environment of choice, as 74% of global IT decision-makers predict that by 2025, at least 95% of all workloads will run in the cloud. The reality is that cloud-to-cloud moves that migrate from one tenant to another tenant will be the transformation service of the future. Tenant-to-tenant migrations are evolving beyond basic data and mail transfers. Today, enterprises are using more complex and integrated features in cloud platforms, and as mergers happen, these tools need to be migrated securely and efficiently.

In the wake of M&A, many organizations using, for example, Microsoft 365 will need to perform tenant-to-tenant migrations to consolidate users, data and workloads. This will lead to the rise of more specialized tools and services to enable smooth, fast and secure tenant consolidations.

The Shift to Cloud Solutions Will Accelerate

IT spending on public cloud services is on a steady rise, with worldwide end-user spending expected to reach $679 billion in 2024 and projected to surpass $1 trillion by 2027. By 2025, there will be a significant shift as more businesses move their systems entirely to the cloud. By 2028, cloud computing will no longer be seen as a technology disruptor but as an essential element for maintaining competitiveness in the business landscape.

The primary drivers of this shift will be scalability, flexibility and cost efficiency, as companies increasingly recognize the need for cloud adoption to achieve operational agility and thrive in a digital-first world.

Retirement of Legacy Systems Will Accelerate

In 2025, enterprises will face mounting pressure to retire aging infrastructure. Business leaders and technology executives understand that legacy systems can significantly impede growth and competitiveness in a digital-first world dominated by tech-savvy businesses. Updating legacy systems can reduce IT complexity and costs, improve flexibility and make it easier to work across different platforms. Cloud-based solutions are becoming the norm, and removing the inefficiencies, security risks and high maintenance costs that come with old systems is increasingly important.

The end-of-life announcements for legacy systems, such as Microsoft's on-premises Exchange, are pushing businesses to act. Many organizations have been holding onto outdated environments, but this migration trend will accelerate with the focus on cloud-based technologies like Copilot.

Organizations will increasingly look for solutions to move old systems to the cloud while connecting with modern tools, keeping their cloud setups flexible and secure.

Greater Emphasis on Data Sovereignty and Compliance

As organizations migrate to the cloud, data sovereignty and compliance requirements are becoming more stringent. Ensuring compliance with different regulatory obligations in different parts of the world has become challenging. Regions like Canada and Germany, and even states like California, are implementing regulations that demand businesses maintain strict controls over where their data resides. As a result, companies will select cloud providers based on their ability to comply with these evolving regulations, such as GDPR and CCPA.

In 2025, IT teams and MSPs need to be prepared for migrations that consider data movement and adhere to regulatory compliance across diverse jurisdictions. Going forward, balancing data accessibility with regional compliance will become more than a business advantage; it will be fundamental to building global digital trust and collaboration.

2025: A year of change

The cloud landscape is changing as we move toward 2025, and IT teams must be prepared for new challenges. Cloud migration strategies will play a key role in how businesses adapt to the digital age. With more mergers leading to tenant consolidations and the need to phase out old systems, IT professionals must keep up with these trends. Cloud adoption is not just about scalability or using advanced technology; it's also about meeting regulations and ensuring long-term success. Companies wanting to stay competitive in 2025 need to adapt to these changes.

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ABOUT THE AUTHOR

Aaron Wadsworth, General Manager at BitTitan, is a seasoned leader with nearly two decades of experience in high-tech sales and executive management. His expertise lies in company management, team empowerment, and customer success. Aaron has successfully spearheaded client relationship management initiatives, resulting in improved customer retention and exponential business growth. His career highlights include significant revenue growth and successful M&A support, making him a prominent figure in the corporate arena.