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Hybrid Cloud, AI Emerge as Critical Priorities for IT Leaders in 2025, Rackspace Study FindsHybrid Cloud, AI Emerge as Critical Priorities for IT Leaders in 2025, Rackspace Study Finds
Organizations are increasingly reconsidering where they put their money and workloads in the cloud as AI becomes a new driver.
4 Min Read
Alamy
Organizations are dramatically reimagining their cloud strategies, with hybrid environments emerging as the preferred architecture for 2025 and beyond.
Rackspace Technology's 2025 State of Cloud Report reveals that organizations are shifting their cloud strategies. The research, conducted in October and November 2024 by Coleman Parkes Research, gathered data from 1,400 IT decision-makers. Respondents came from organizations with 1,000 to 10,000+ employees and revenues between $50 million and $15 billion. The survey spanned multiple sectors: manufacturing, logistics, retail, hospitality, healthcare, government, financial services, and media/entertainment. Geographic coverage included the Americas, Europe, Asia, and the Middle East.
The timing of this research is significant as it captures enterprise cloud strategies just as AI adoption accelerates. The findings show a decisive shift. Single-cloud deployments are out, and multi-environment architectures are in. Organizations want flexibility for AI workloads while maintaining strict security controls.
2025 State of Cloud Report Key Findings
90% of organizations plan significant cloud strategy changes within two years.
48% view hybrid cloud as critical for IT operations.
84% are actively integrating AI with cloud strategies.
Only 16% have fully integrated cloud adoption into their business strategy.
69% have considered repatriating workloads from public to private clouds.
96% have established cloud data privacy and compliance procedures.
"The fact that nearly half of respondents are currently leveraging AI and ML for advanced security is particularly interesting," Ben Blanquera, vice president of technology and sustainability at Rackspace, told ITPro Today. "This challenges the prevailing narratives that AI has negative implications for security, revealing instead that the reality is much more nuanced."
Public Cloud Repatriation Momentum Continues
A key finding in the report is that more than two-thirds of organizations have considered moving workloads back to private clouds or on-premises infrastructure.
The primary drivers for this shift include data security and compliance requirements (50%), better integration with existing systems (48%), and cost savings (44%). Notably, 80% of organizations that completed workload repatriation reported successful resolution of their initial concerns.
For organizations that have already completed a public cloud repatriation, Blanquera has some metrics that can be used to determine its success.
Cost savings. Particularly for infrastructure and operations, cost savings is a primary focus. To that end, Rackspace is increasingly seeing IT leaders leverage FinOps to measure the impact.
Performance. Additionally, IT teams evaluate performance metrics such as latency and speed, along with the system's reliability, including downtime and failure rates.
"Overall, our survey revealed that nearly 80% of IT leaders at organizations that had repatriated workloads back to the private cloud or on-premises infrastructure were satisfied with the success of these moves," Blanquera said.
Elite Performers Set the Pace: How to Be a Cloud Leader
The research identified a distinct group of "Cloud Leaders" — representing 16% of respondents — who have achieved full cloud integration into their business strategies. These organizations report significantly higher success rates, with 62% exceeding performance expectations compared with 37% of their peers.
These leaders differentiate themselves through:
Strategic alignment of cloud platform selection
Advanced AI-driven cloud optimization (37% versus 25% of others)
Comprehensive workload placement analysis
Superior integration of AI initiatives
"We found that the Cloud Leaders don't commit to any one philosophy or approach when it comes to their cloud infrastructure," Blanquera said. "Instead, they take advantage of a diverse range of cloud solutions, using comprehensive analysis to make decisions on where to host critical workloads on a case-by-case basis."
AI as a Strategic Cloud Imperative
The integration of AI and cloud strategies has become a central focus, with 84% of organizations actively pursuing this convergence. Primary objectives include operational efficiency improvements (49%) and enhanced data analytics capabilities (45%).
There are a series of specific AI use cases that are delivering the most immediate value in cloud operations. Blanquera said intelligent search and document processing are gaining the most traction, as businesses recognize the importance of enhancing information retrieval efficiency for digital transformation efforts. The survey also revealed that many organizations are beginning to leverage AI for cybersecurity.
"For most businesses, cost savings are the primary metric they aim to enhance through AI solutions," he said. "Furthermore, customer service teams are among the most prominent adopters of AI, making customer satisfaction another critical metric for many companies."
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