Cloud migration, Multi-cloud management, MSP

Weather Report: 2025 Cloud Computing Predictions

Cloud computing isn't as flashy as still-nascent technologies like AI, but the cloud has plenty of potential for MSPs and MSSPs to deliver value and drive revenue in 2025.

With that in mind, several tech experts shared their cloud predictions for 2025 with ChannelE2E and explained how they see the cloud impacting MSP businesses in the new year.

J.J. Kardwell, the CEO of automated cloud infrastructure vendor Vultr, said he sees the need for new innovations in cloud to bring out the best in the still-evolving field of AI.

As AI becomes smarter and more dependable in the next year, “businesses will require agile, scalable, open, composable ecosystems to unlock its full potential,” said Kardwell. But that will be too much for the Big Tech cloud titans to be able to deliver, he said.

Instead, “enterprises will increasingly look to alternative cloud providers to supply the kind of infrastructure that supports the rapid deployment of new AI models without skyrocketing overheads,” said Kardwell. “These open ecosystems will supplant the monolithic, rigid, and costly single-vendor paradigm that has disproportionately favored enterprises operating closer to the traditional tech heartlands, leveling the playing field for AI innovation across all regions of the world.”

In addition, he said, generative AI is about to become the backbone of enterprise technology, displacing much of the excitement of ChatGPT when it burst on the scene in 2022. “As businesses have determined where AI fits into their operations and how to maximize its value, they are moving out of an adoption phase and into a reconstruction phase,” he said. “Enterprises are now rebuilding their business operations with generative AI at the core, which will kick off an era of radical transformation in productivity and operational efficiency in 2025.”

For MSPs, this is a great time to shape services and offerings around AI integration as well as demonstrate how to maintain compliance and security around artificial intelligence.

Big Developments in Agentic AI On the Way

Also coming in 2025, said Kardwell, is an expected rise in agentic AI, which he believes will encourage additional growth at the edge.

“In 2025, agentic AI will leap from imaginary to necessary, quickly redefining enterprise automation,” he said. “Self-directed AI applications will allow organizations to make real-time, data-driven decisions, particularly in sectors already making use of sovereign and private clouds. Expect early enterprise-level adopters to crop up in places where CapEx isn’t an issue, deploying high-performance GPU and CPU clusters for mission-critical applications.”

At the same time, “lighter agentic AI solutions will flourish through alternative cloud providers, enabling serverless inference at the edge, slashing costs and complexity,” he said. “By outsourcing infrastructure management, businesses will be able to focus on optimizing the AI application layer, unlocking unparalleled productivity and customer engagement. To support the massive scale of AI inference required, organizations will increasingly deploy specialized models paired with vector databases and RAG at edge locations.”

All of this will build an “edge-focused architecture [that] will deliver the ultra-low latency needed for AI agents to effectively support the volume of AI interactions needed for agentic AI at scale,” said Kardwell.

Hyperscalers Embrace Multi-Cloud, Spurring Migration

Paul Horn, Senior Director, Global Microsoft Partnership at scalable data platform vendor Nasuni, told ChannelE2E that a significant trend towards multi-cloud adoption is on its way in 2025, especially as hyperscalers like Google, Microsoft, and AWS continue to embrace this approach.

“For Google Cloud in particular, being third in the market means that adopting multi-cloud could offer strategic advantages, allowing it to extend its reach across diverse cloud environments,” said Horn. “This shift will give customers greater flexibility while opening up new co-sell opportunities across partner ecosystems, ultimately benefiting all three major cloud providers as they invest in this approach.”

In addition, Horn said he expects an accelerated push towards industry-tailored products and services from hyperscalers, with AWS and Microsoft leading efforts to customize cloud offerings for specific sectors.

“This approach is set to deliver significant value to industries like healthcare, finance, and manufacturing, allowing them to access cloud solutions that address unique regulatory and operational needs,” said Horn. “As hyperscalers develop these high-value, customized solutions, businesses in these sectors can expect more precise support for their specialized requirements."

Todd R. Weiss

Todd R. Weiss is a contributing editor to ChannelE2E and MSSP Alert. He is an award-winning technology journalist and freelance writer who covers the full range of B2B IT topics. He served as managing editor at EnterpriseAI.news and was a staff writer for Computerworld and eWeek.com. He is a diehard Philadelphia Phillies, Eagles, Flyers and Sixers fan and says he is the world’s worst golfer.

You can skip this ad in 5 seconds