2025 Cloud in Review: 6 Trends to Watch

As data becomes a core strategic asset, cloud computing, and cloud databases allow enterprises to integrate analytics, AI, and machine learning directly into their data pipelines. As such, it is no surprise that cloud is becoming increasingly important as organizations demand more flexibility, scalability, and efficiency in how they manage and access data.

Traditional on-premises compute resources and databases often struggle to meet the needs of modern digital applications, which require real-time responsiveness, global availability, and elastic resource allocation. In contrast, cloud resources offer on-demand provisioning, automatic scaling, and built-in redundancy, enabling businesses to adapt quickly to changing workloads without significant infrastructure investments.

With growing trends in edge computing, IoT, and decentralized data generation, cloud is well-positioned to act as the connective tissue between diverse data sources and intelligent services, driving innovation and faster time to insight.

Cloud Trends for 2025

As organizations shift from viewing the cloud merely as an IT utility to seeing it as a central business enabler, Gartner recently identified six pivotal trends set to define cloud strategies through 2029. They include:

1. Cloud Dissatisfaction Is Rising

Despite rapid cloud adoption, success remains uneven. Gartner forecasts that by 2028, 25% of organizations will report significant dissatisfaction with their cloud initiatives. The main culprits are unmet expectations, flawed strategy, and runaway costs. The remedy? Clear-eyed strategy and disciplined execution. Those who prioritize strategic alignment are likely to see dissatisfaction rates decline post-2029.

2. AI/ML Demand Will Skyrocket

The integration of artificial intelligence (AI) and machine learning (ML) is transforming cloud infrastructure. Gartner predicts that by 2029, 50% of cloud compute usage will be driven by AI/ML workloads. That’s a dramatic leap from current levels that are under 10%, according to Gartner. Hyperscalers will continue building AI-friendly platforms, combining real and synthetic data, and distributing intelligence across hybrid environments.

3. Multi-cloud Complexity Persists

Many enterprises are pursuing multi-cloud or cross-cloud architectures to enhance resilience and avoid vendor lock-in. Yet Gartner cautions that over 50% of these efforts will fail to deliver on expected benefits by 2029. The most common barriers are interoperability issues and fragmented operations. To succeed, organizations must clearly define use cases, and plan federated workloads across multiple clouds and on-prem environments.

4. Rise of Industry-Specific Cloud Platforms

Cloud solutions tailored to vertical sectors, from healthcare to manufacturing, are rapidly gaining traction. Gartner expects that by 2029, more than half of organizations will leverage industry cloud platforms to accelerate outcomes. These platforms deliver pre-built compliance, workflows, and analytics.

5. Digital Sovereignty Takes Center Stage

Concerns around data residency, privacy, and geopolitical controls are driving demand for sovereign cloud services. Gartner forecasts that by 2029, over 50% of global multinationals will adopt digital sovereignty strategies, up considerably from fewer than 10% today. In an era of complex regulations and increasing data nationalism, cloud providers must offer localized control over infrastructure and governance.

6. Sustainability Isn’t Optional

With AI’s momentum comes a surge in cloud energy consumption and environmental scrutiny. Regulators, investors, and customers increasingly expect sustainable practices in cloud operations. Providers and users alike will need to measure, manage, and reduce carbon footprints.

See also: Cloud Market Surged to $330 Billion, Driven Largely by Generative AI

Why These Trends Matter

Cloud is no longer optional. It forms the backbone of digital agility, competitive advantage, and operational resilience. These trends underscore the shift from purely technical optimization to holistic business enablement.

As half of compute shifts toward AI/ML, organizations must evaluate whether their data architectures, latency strategies, and governance models can support scalable intelligence.

Additionally, multi-cloud and digital sovereignty trends highlight the need for mature governance frameworks that balance agility with compliance, cost control, and geopolitical considerations.

Off-the-shelf SaaS is giving way to vertical platforms optimized for regulation-heavy industries. These offer faster time to value and less domain-specific overhead.

A Final Word

The use of the cloud is turbocharged by AI and defined by increasingly complex governance, cost, and environmental demands. As such, cloud computing and cloud databases in 2025 are at a crossroads, facing multiple challenges.

By framing cloud as a strategic asset rather than just a technical choice, leaders can transform these challenges into long-term competitive advantages.