Industry executives and experts share their predictions for 2025. Read them in this 17th annual VMblog.com series exclusive.
By Bruce Kornfeld, chief product officer, StorMagic
As we step into 2025, the IT landscape is undergoing yet another
significant transformation. Data is increasingly decentralized, with Gartner
predicting that 75% of all data will be generated outside
traditional data centers and Cloud environments by 2025.
This shift is driven by high Cloud computing costs, performance
and latency issues and concerns about reliability and security. These changes
will also drive leaders to think more strategically about how they are
implementing Cloud computing in their tech stack and what it looks like for
them to be genuinely AI-ready. The age of digital transformation is still in
full force-companies will have to be agile in order to not fall behind.
Prioritizing Localized Compute Capabilities
With the exponential growth of edge data, which is estimated to
grow at a compound annual growth rate (CAGR) of more than 33.57% over the next three years, enterprises
will prioritize localized computing capabilities to enhance data processing.
There will be more workloads at the edge that will require advanced data
management approaches, AI and GPU support. This shift is driven by the need for
real-time analytics, automation and enhanced customer experiences.
Despite the hype, quantum computing won’t hit the mainstream by
2025. Although significant investments are being made in quantum computing, the
technology will remain in the early innovation stages through 2025, with
commercialization still several years away. While quantum computing holds
promise, it will not yet be a practical solution for most enterprises next
year.
Cloud Regret
Many IT leaders are experiencing “Cloud regret” and are
moving towards edge computing, which allows data to be processed closer to
where it is created, thus reducing latency and improving performance. Companies
are also ready to end their Cloud love affair. More than 40% of larger enterprises are expected to
adopt edge computing by 2025, fueled by the recent advancements in low-cost
hyperconverged infrastructure (HCI) solutions.
As companies reassess their Cloud commitments, I predict a notable
trend toward repatriating workloads from the Cloud back to on-premises
infrastructures by 2025. This shift will be driven by Cloud lock-in challenges
and the need for greater control over data and costs, with HCI technologies
playing a crucial role in facilitating this transition.
Focusing on AI Readiness
With 79% of global tech executives stating that
they believe unifying data is essential for achieving AI outcomes in 2025, it
is no surprise that enterprises will increasingly focus on AI readiness –
particularly regarding their edge computing sites, such as remote offices,
stores and branches. Preparing for AI implementation will require substantial
investments in infrastructure and training to effectively manage AI workloads
locally.
By 2025, advancements in interconnect technologies will
revolutionize AI processing, enabling super low-latency data transfers.
Companies will harness distributed GPU processing to significantly enhance data
handling capabilities, shifting the landscape of AI and analytics. While NVIDIA
currently dominates the GPU market, it faces challenges as its architecture may
not be ideally suited for all AI processing needs. Struggling to keep pace,
companies such as Intel may find opportunities for resurgence through
innovation. However, NVIDIA’s dominance is expected to wane as alternative
technologies and architectures emerge, reshaping the competitive landscape in
the AI processing arena.
Legislative Scrutiny and Custom Processor Concerns
As the use of AI grows, I anticipate that 2025 will see heightened
legislative scrutiny regarding data sourcing and model training practices.
Organizations will need to ensure compliance with new transparency requirements
and legal implications surrounding AI usage. With copious amounts of AI being
implemented, we can expect to see litigation, privacy and ethics concerns, and
other factors play into this tool in the next year.
Additionally, the market for custom processors will expand
significantly by 2025, driven by innovations from companies like Sambanova and
Graphcore (recently bought by Softbank). With Softbank also owning ARM, we
anticipate a future where these entities converge, potentially forming a
powerful entity that delivers what could be termed an ?AI Engine on Steroids.’
Looking to 2025
The IT landscape in 2025 will be characterized by a shift towards
localized computing capabilities, a reevaluation of Cloud commitments, and a
focus on AI readiness. In addition to keeping up with the changing technology,
companies will also need to keep an eye out for ongoing legislative changes in
order to ensure they are staying compliant with those regulations as
well.
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ABOUT THE AUTHOR
Bruce Kornfeld is an experienced technology executive who has held leadership
roles in marketing, product management, alliances, and business development in
the storage, server, networking, and security industries. He joined StorMagic
in 2017, and serves as chief product officer, where he is responsible for all
aspects of product management, global marketing, and alliances for the company.
Prior to joining StorMagic, Bruce held marketing and product leadership
positions at Compellent, Dell, and NCR. He helped Compellent grow its revenue
from $9M to more than $150M, which led to its IPO and eventual sale to Dell for
$960M, and was instrumental in building and growing Dell’s first storage
division to over $1 billion. Bruce holds a Bachelor’s degree and a Master’s
Degree in Engineering as well as a Master of Business Administration, all from
Cornell University.
