Top 10 Growth Opportunities in Cloud, 2025

AI, Data Protection, and Sustainability Goals Drive Provider and Enterprise Investments

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.