The New Rhythm of Business Runs on Cloud

As the global shift to cloud accelerates, cloud computing has emerged as the fastest-growing segment in the IT industry. Organizations are relying on the cloud not just to support their core operations, but also as the foundation for digital transformation, IT modernization, and improved business outcomes. For many modern businesses, cloud-first operating principles have become the new standard.
To unlock the full potential of the cloud, companies are increasingly investing in cloud-native applications, architectures, and operating models. Cloud-native thinking now shapes decisions around application modernization and digital strategy. The cloud’s impact extends across IT operations, security, and networking—and even into business processes like procurement, where cloud marketplaces are now common for acquiring technology solutions.

Evolving business needs are also driving the adoption of cloud-enabled innovations like artificial intelligence (AI), the Internet of Things (IoT), 5G-powered telco clouds, and edge computing. Cloud providers are pushing boundaries even further by exploring emerging technologies like quantum computing as a service to support long-term business growth.
Despite its maturity, cloud computing remains front and center in the tech world. It has proven itself as a reliable platform for delivering IT capabilities—and more importantly, as a critical foundation for innovation.

Powering Innovation, Responsibly

As cloud technology becomes central to digital transformation, the rise of Generative AI (GenAI) introduces new opportunities—and new challenges. Infrastructure and Operations (I&O) leaders are gearing up to harness the full potential of the cloud, but doing so requires navigating technical and nontechnical complexities alike.

Generative AI and the Cloud
Public cloud providers are uniquely positioned to drive the GenAI movement. Their scale, shared infrastructure, and ability to rapidly deploy services make them ideal platforms for building GenAI-powered applications and general-purpose foundation models (FMs). However, alongside the promise of rapid innovation come regulatory and governance hurdles.
Foundation Models, LLMs, and Data Responsibility
At the heart of GenAI are foundation models and large language models (LLMs), which are accelerating the development of powerful new use cases. But managing these models comes with regulatory responsibilities—especially around data privacy and residency. Organizations must prioritize data governance, residency compliance, and security practices, such as ransomware threat detection, vulnerability management, and robust data protection measures.
AI, SaaS, and Composability
AI-driven development is reshaping the nature of SaaS applications. Instead of monolithic software, we’ll see AI-generated apps built from pre-assembled, composable components—more modular, agile, and aligned with modern business thinking. Major tech platforms are already enabling enterprise developers to generate code using GenAI tools, driving faster innovation cycles.
Sustainability and GreenOps
Environmental sustainability is no longer optional. Investors, customers, regulators, and governments are pushing organizations to reduce their IT carbon footprint. As a result, enterprises are adopting GreenOps strategies to measure, manage, and optimize energy consumption and carbon emissions from cloud workloads. Sustainability and digital sovereignty are quickly becoming critical selection criteria for choosing public cloud GenAI services.
Digital Sovereignty and Specialized Cloud
Data sovereignty is becoming essential for organizations with global operations. Businesses must ensure they can control where data is stored and processed—often requiring specialized cloud providers with sovereign capabilities. These providers may offer regional cloud services, edge deployments, support for non-x86 systems, or AI/ML-specific functionality. Drivers of this shift include compliance, privacy laws, and industry-specific regulations.
Rethinking Cloud Economics
Public cloud spending is already a significant portion of the IT budget, and cost scrutiny is intensifying. Organizations must match cloud costs with measurable business value. Traditional capacity-based financial models don’t fit well with consumption-based cloud economics. Without evolving their approach to cost management, enterprises risk missing out on the innovation benefits that hyperscale cloud providers offer.

Ready for Cloud?

To fully capitalize on cloud investments and avoid the pitfalls of unstructured adoption, organizations must design a clear, scalable cloud operating model. This model isn’t just a technical framework—it’s a strategic alignment of people, processes, and governance that evolves alongside business priorities. Here's how to lay the foundation:

Establish advisory structures
Begin by setting up a Cloud Center of Excellence (CCoE) to lead and govern cloud initiatives. For larger organizations, consider forming a Cloud Executive Council to provide cross-functional oversight and executive alignment.
Align cloud strategy with business objectives
If a formal cloud strategy doesn’t exist yet, collaborate with your CCoE to define key principles and adoption goals. If one is already in place, ensure it remains aligned with shifting priorities, compliance needs, and innovation targets.
Define the model’s foundation
Visualize both your current cloud setup and the long-term vision. The cloud enablement function—often led by the CCoE or enterprise architecture team—will act as the core that drives execution and guides the transition between these stages.
Establish cloud delivery functions
Choose the right cloud operations approach for your organization and begin implementation. Integrate security and risk management from the outset to maintain control while allowing for operational flexibility.
Connect supporting business functions
Link your IT cloud teams with adjacent areas such as procurement, sourcing, vendor management, and finance. Foster active collaboration between these roles, and consider forming a cloud community of practice to share knowledge and ensure unified progress across departments.

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