In 2025, organizations across all industries and geographies are focused on artificial intelligence (AI): specifically, how to reap the benefits while minimizing risks. The rapid evolution of AI technologies is driving investment throughout the stack: in infrastructure, processing and storage, data frameworks, cybersecurity, and AI-infused applications. For cloud hyperscalers, the opportunity lies in offering a diverse selection of foundational models for clients to choose from as they build their AI-powered applications. Also in 2025, organizations will continue to prioritize cost-containment and efficiency in their IT solutions. As their digitalization strategies mature, businesses are investing in technologies that will streamline operations, optimize resources, automate labor-intensive processes, and support sustainable business practices. They also remain focused on securing apps and data, across multiple platforms and infrastructures.

In this report, Frost & Sullivan outlines the top 10 growth opportunities that cloud service provider will focus on in 2025: Investing in LLMs and developer tools; enhancing data protection strategies; increasing use of low-code application platforms; supporting AI at the edge; optimizing IT and cloud resources; exploring alternative power; embracing hybrid storage; advancing sustainability; expanding cloud infrastructure; and increasing industry clouds.

Author: Lynda Stadtmueller