Industry executives and experts share their predictions for 2025. Read them in this 17th annual VMblog.com series exclusive.
By Alex
Galbraith, Chief Technology Officer, Cloud Services at SoftwareOne
AI has reshaped the cloud landscape over the past year, driving improvements across the board in efficiency, decision-making,
and cost optimization. By lowering cloud expenses through smarter strategies,
enhancing security, and automating IT operations, AI accelerated the demand for
cloud services. While the path ahead seems clear, 2025 brings a new wave of
emerging technologies positioned to redefine the limits of cloud computing.
As these technologies advance and new regulations emerge,
the cloud will undergo not just an evolution but an immense transformation. Organizations
that embrace this next phase of innovation and cloud transformation will unlock
unparalleled opportunities for advancement. Critical sectors like healthcare
will harness advanced cloud and AI technologies to revolutionize drug discovery
and streamline supply chains. This shift will enable opportunities for business
growth, including offering innovative solutions to manage and reduce emissions.
1)
AI under a microscope
Compliance
around the use and deployment of AI will be under the microscope in 2025.
From February, rules that prohibit certain uses of AI systems considered to
pose a certain level of risk will take effect under the EU’s AI Act. It will
see bans on practices such as live facial recognition and emotional recognition
technology come into force. The Act’s full implementation, however, follows a
staggered approach until 2027, meaning businesses deploying or providing AI
systems will have to stay alert to all movements in the new regulatory
regime.
Ultimately,
the success of companies’ generative AI strategies in the cloud will be
dictated by requirements for a balanced approach to risk as outlined in the
legislation. In a competitive business environment, the fact that companies use
AI will become less of a differentiator- it all depends
on how AI is used to improve business processes and provide
meaningful value to the business and their customers. One of the AI
Act’s pillars is to promote AI literacy. To achieve this, it is vital for
businesses to be proactive, establish clear governance structures,
and develop their AI vision and strategy today, to help prepare the business
for the cultural, process and technical changes that will happen tomorrow.
2)
The dynamic synergy of edge computing
and 5G
The
combination of edge computing – the practice of processing data near the edge
of the network where it is generated – and 5G will have a significant impact on
the cloud landscape. The coalescing of these two technologies will enable
real-time, low-latency data processing, minimizing the need to send excess data
to centralized cloud platforms and reducing bandwidth and other associated
costs, while improving the scalability of their applications.
Currently,
we are seeing a massive growth in IoT and low-latency apps. With this growth,
we expect to see a demand for more localized computing so that IoT devices can
make quick decisions instantly and locally. This has wide ranging applications
in many fields, for example healthcare (wearables administering medicine to
patients without user input) and automotive (help self-driving cars process
data from their sensors in real time, allowing them to respond faster to their
surroundings).
Looking
ahead, we can expect the combination of edge computing and 5G will bring
greater speed to operations as well as better scalability, and accessibility
for emerging technologies.
3)
The disruptive impact of quantum
computing
Quantum
computing is one of the biggest trends set to disrupt the cloud services
industry in 2025. Offering lightning-fast computation speed and
efficiencies in security and optimization, we can expect to see enterprises
start feeling the benefits. Quantum computing will grow exponentially in the
years ahead and is projected to grow from $1.1 billion in 2024 to
$12.6B in 2032. Investment is ramping up with all three of
the big hyperscalers already creating and investing in quantum resources today
and major cloud providers beginning to experiment with quantum-as-a-service
models.
Although
it’s early days, quantum computing is starting to shape how organizations think
about research, modeling, security, and data. Poised to bring new levels of
speed to enterprises, quantum will enhance data analysis, fuel productivity,
and mean entirely new products and services that have been
considered only science fiction, using current technology.
Industries
such as pharma that require complex computation for drug discovery,
cryptography, and financial modeling will be the first to take advantage of
quantum computing, looking to quantum as the next ?silver bullet’ for
transforming their industries. To make the transformation possible, the cloud
provides the ideal mechanism for accessing quantum due to its accessibility and
scalability. Naturally, it is those who have already moved to cloud models who
will be the ones quick to take advantage of quantum computing as it becomes
more accessible through cloud platforms.
4)
All eyes are on sustainability
The
demand for data center power is set to grow 160% by 2030 as
the use of AI, alongside cloud computing capabilities, increases and as a
result, emissions are set to surge. Despite attempts by technology companies to
drive down emissions, it is estimated that rising demand will deliver emissions
equivalent to 2.5 billion metric tons of carbon dioxide by 2030, according to recent research.
Looking ahead, cloud providers will have a duty to offer more eco-friendly
solutions and transparent carbon accounting to their customers, like
renewable-powered data center and energy-efficient infrastructure, for example,
to help them manage their emissions.
With
legislation, including the EU’s Energy Efficiency Directive, requiring data
center operators to report energy usage, data centers will need robust data
analysis capabilities to ensure they are able to comply with new disclosure
demands. This also includes data optimization to identify inefficiencies and
opportunities to reduce consumption.
FinOps,
the operational framework that helps organizations maximize business value
through cloud technology, will be a key tool in achieving
sustainability goals. FinOps helps to optimize costs and drive more efficient
cloud use, reducing the energy required to run cloud resources. Every dollar
saved on cloud spend leads to a reduction in carbon footprint, so
cost-efficiency becomes synonymous with environmental responsibility.
As
we begin 2025, the cloud landscape is on the brink of significant change. The
integration of AI, edge computing, 5G, and quantum computing will continue to
drive advancements, while new regulations and the prioritization of
sustainability will shape the strategies of organizations globally. Businesses
can stay ahead of the curve by proactively
embracing these changes, investing in new technologies, and prioritizing energy-efficient
solutions, ensuring they remain competitive in the constantly evolving digital
age.
##
