Gartner: 90% of organizations will adopt Hybrid Cloud through 2027

Gartner believes that data synchronization across the hybrid cloud environment will be the most urgent challenges businesses will look to address in 2025.

According to the latest forecast by Gartner, 90% of organizations will adopt a hybrid cloud approach through 2027. This forecast highlights the growing necessity for businesses to scale up their hybrid cloud infrastructure, especially as they look to build and deploy more Generative AI workloads.

GenAI spending remains at an all-time high with more businesses expected to focus on developing use cases in 2025 and beyond. However, the biggest challenges organizations are also facing in their GenAI adoption is in data management. Gartner believes that data synchronization across the hybrid cloud environment will be the most urgent challenges businesses will look to address in 2025.

While the demand for better data management and a robust hybrid cloud infrastructure increase, the public cloud market is also expected to grow. In fact, Gartner predicts worldwide end-user spending on public cloud services to total US$723.4 billion in 2025. In 2024, the spending was projected to be US$595.7 billion.

According to Sid Nag, Vice President Analyst at Gartner, the use of AI technologies in IT and business operations is unabatedly accelerating the role of cloud computing in supporting business operations and outcomes.

“Cloud use cases continue to expand with increasing focus on distributed, hybrid, cloud-native, and multi-cloud environments supported by a cross-cloud framework, making the public cloud services market achieve a 21.5% growth in 2025,” said Nag.

Overall, Gartner forecasts all segments of the cloud market to record a double-digit growth rate in 2025 highlighting how I&O leaders are pressured to effectively integrate I&O into their GenAI strategies and prepare for running AI and GenAI infrastructure at the edge.

Driving the momentum in cloud spending globally will the continued growth in the industry for vertical specific GenAI models. These models will be curated, private and secure. They also require advanced training, inferencing and fine tuning.

In 2025, Gartner predicts organizations will increasingly be attracted to the efficiencies of cloud infrastructure and platform services (CIPS) offerings. Gartner defines the CIPS market as a full-featured platform in which Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS) capabilities are delivered as integrated cloud services.

Nag explained that organizations are choosing CIPS because workloads of today are complex, and organizations are seeking integrated platforms to simplify development, deployment and operations.

“Organizations deploying a multi-coud adoption model, which is still recording growth, are also driving spend on CIPS,” added Nag.

Furthermore, the cross-cloud integration framework (CCIF) will be a key driver of the CIPS adoption model as it makes multi-cloud a reality. For example, organizations will demand cross cloud federated GenAI capabilities to service advanced AI workloads and use cases.

As such, Gartner expects end-user spending on CIPS will grow 24.2% in 2025 to reach US$301 billion. In 2025, CIPS offerings are projected to account for 72% of IT spending on IaaS and PaaS, up from 70% in 2022.