2025 is shaping up to be a fundamental year for the cloud industry. From growing concerns around data sovereignty to the decline of hyperscaler dominance, and the acceleration of AI adoption, businesses face critical decisions that will define the cloud industry for years to come.

So, what do we have to look forward to in 2025? 

Data sovereignty: Defining the future of control

Data sovereignty is set to dominate boardroom discussions in 2025 as customers increasingly demand privacy and control over their information. The debate over where data resides, who has access to it, and how it’s protected has reached a tipping point. Both governments and businesses face increasing pressure to establish clear, enforceable standards – but many organisations still lack clarity on what true data sovereignty really means in practice.

The UK government’s mixed messaging only compounds this uncertainty. While claiming to champion sovereign cloud providers, their actions tell a different story. They continue to approve non-sovereign data centres and have recently appointed the CEO of Microsoft, a US-registered global corporation, as Chair of the Industrial Strategy Council. This inconsistency ultimately erodes confidence and ignores the growing demand for secure, transparent data protection.

2025 needs to be the year we move past the confusion and take real action on data sovereignty. Industry and government must get on the same page, with a sharper focus on transparency and accountability.

The decentralisation of cloud

The traditional hyperscaler model, now synonymous with complexity, vendor lock-in, and escalating costs, is no longer working for many businesses. Businesses are fed up, and in 2025, I expect we’ll see a real shift toward cloud providers that offer greater transparency, flexibility, and control.

Companies are demanding infrastructure that’s simple to scale, cost-effective, and flexible. After years of market dominance, the cloud industry is finally moving away from rigid, one-size-fits-all models toward platforms that empower growth, innovation, and choice.

Hybrid cloud: resilience through diversification

Hybrid cloud saw huge momentum in 2024, and it’s set to accelerate even further in 2025. With rising cyber threats and geopolitical uncertainty, businesses are taking a smarter approach: spreading their workloads across multiple platforms to improve resilience, strengthen security, and optimise performance.

Simply put, businesses want to avoid putting all their eggs in one basket. Hybrid cloud achieves this by giving organisations the control and flexibility they need to tailor their infrastructure to specific needs while reducing risk. It’s a strategy that’s as much about resilience as it is about innovation – and in 2025, it will become the standard for businesses looking to stay ahead.

Reaching new levels of compute

NVIDIA’s Blackwell chips, set to launch in 2025, promise extraordinary compute power. But here’s the problem: they won’t come cheap. For smaller businesses, the price tag puts this technology out of reach, widening the gap in AI access.

It’s a tough balance. How do we ensure that AI tools don’t just end up in the hands of those with the deepest pockets? If only the biggest enterprises can afford this level of compute, smaller organisations risk falling behind, and innovation as a whole hits a roadblock. 

The real challenge with AI agents is making them accessible. If they’re too expensive or complicated to deploy, smaller businesses will be left behind while the big players reap all the benefits. For AI agents to live up to their promise, they need to be easy to adopt and scalable, giving businesses of all sizes the tools to streamline operations, cut down manual work, and work smarter.

AI agents: The rise of intelligent collaborators

AI agents are poised to be the future of AI, taking on complex, multi-step tasks that go well beyond simple automation. From streamlining workflows to solving complex problems and making decisions, these systems are set to redefine how businesses operate and innovate.

Once again, we’re at a crossroads. If AI agents remain too costly or complex, smaller businesses will inevitably lose out. In 2025, the focus needs to be on levelling the playing field – whether through smarter partnerships, shared infrastructure, or industry collaboration – so businesses of all sizes can tap into the benefits of AI.

Abstraction of core technologies: Simplifying the complex

In 2025, AI will make it even easier for businesses to work with core technologies like Kubernetes. Tasks that once made infrastructure management feel complex and resource-heavy will increasingly happen ‘under the hood’, allowing developers to spend less time on maintenance and more time building and innovating.

This shift will be a huge productivity boost, but businesses need to stay alert to the trade-offs. With abstraction comes the risk of vendor lock-in and a loss of control over critical infrastructure. Balancing simplicity with flexibility will be key for businesses that want to maintain ownership while embracing the benefits of AI-driven automation.

The year ahead

2025 is set to be a year of opportunity for businesses ready to take control of their cloud and AI strategies. With data sovereignty, AI accessibility, and fair competition driving the conversation, there’s a real opportunity to reshape the tech landscape in ways that empower businesses of all sizes. Meanwhile, rapid advancements in AI will open doors to smarter innovation and greater efficiency, creating exciting opportunities for those willing to step up and embrace the change.