Significant change in cloud strategy expected in next 24 months

46% of organizations in Asia Pacific state the hybrid cloud to be critical for their IT operations over the next 12 to 24 months, according to a survey by Rackspace Technology.

Over 90% of respondents from the Asia Pacific have stated that they plan to make significant changes in their cloud strategy over the next two years. The findings are based on a global survey of more than 1,400 IT decision makers conducted by Rackspace Technology.

The 2025 State of the Cloud report clearly highlights the cloud remains a core component in every organization’s digital strategy. While most businesses have opted for the public cloud as it’s the cheaper option, the future is seemingly moving towards the hybrid cloud with multi-environment deployment. In fact, the survey revealed 46% of respondents from the region stating the hybrid cloud to be critical for their IT operations over the next 12 to 24 months.

Compared to a public cloud strategy, hybrid cloud allows organizations to enjoy the best of different cloud options. Depending on their needs, they can opt for using multiple public cloud services combined with private cloud services on premise. For example, when it comes to data storage, many organizations still prefer to use on-premises services, be it on the private cloud or physical storage.

The survey also revealed that APAC respondents are preferring the hybrid cloud due to its improved reliability and availability, followed by enhancing data security and compliance. Moreover, over 72% of APAC respondents stated that their organizations had considered repatriating at least a portion of their workloads from public clouds back to private clouds or on premises infrastructure, citing data security and compliance requirements, better integration with existing systems and skill gaps or staffing limitations in managing cloud environments as rationales.

Interestingly, the survey also revealed a significant gap in full cloud adoption among enterprises. Only 11% of APAC respondents reported that cloud adoption is fully integrated into their business strategy and aligned with their business objectives with advanced practice areas in place.

According to Srini Koushik, President AI, Technology and Sustainability at Rackspace Technology, as AI continues to drive rapid advancements, IT leaders are reevaluating their approach to workload management. He said that instead of updating existing infrastructure, they are designing entirely new cloud strategies to meet evolving demands.

“To future-proof their organizations, many are transitioning from a ‘one-size-fits-all’ model in favor of a more flexible and resilient multi-strategy approach. This pivotal moment for hybrid and multi-cloud solutions empowers organizations to choose services tailored to their unique technical requirements and workloads,” added Koushik.

Meanwhile, Adhil Badat, Chief Operating Officer for Asia-Pacific Japan at Rackspace Technology (pictured above) believes that it is imperative for organizations to develop a clear AI and cloud strategy especially if they want to achieve business and technology benefits such as operational efficiency and enhanced data analytics and insights.

“As organizations shift away from a single-cloud approach, they are embracing flexible, multi-environment solutions to meet evolving business needs. This transformation is not just about technology but about crafting a resilient foundation for future growth while ensuring data security and compliance remain at the forefront,” said Badat.

AI driving cloud strategy

There is no denying that investments in AI will influence cloud strategies for organizations. In APAC, 84% of respondents report that they have taken steps to integrate their AI and cloud strategies with 44% stating that their goal is to enhance operational efficiency while 44% are leveraging AI to improve the insights generated by data analytics.

“AI only amplifies the importance of an agile cloud strategy AI drives innovation across every industry by enabling personalized customer experiences, real-time analytics and operational efficiencies. However, achieving these benefits requires a cloud foundation that can support diverse applications, manage complex data environments and scale sustainably,” stated Koushik in the report.

The survey also revealed that enterprises remain bullish on their efforts to integrate AI and more advanced cloud strategies. 43% of APAC respondents listed autonomous cloud management as one of their top priorities, followed by cloud native AI/ML services and multi-cloud and hybrid cloud optimization. 46% of respondents listed Cloud Native AI/ML Services as one of their top priorities, followed by multi-cloud and hybrid cloud optimization, and Cloud Based Sustainable Computing.

At the same time, APAC respondents also state that talent and resource shortage remain a huge challenge that could limit their cloud strategy. Ensuring data compliance remains the biggest hurdle followed having sufficient budgets to support their plans.

“Shortages of skilled tech experts also pose significant issues, with 4 in 10 saying this is a challenge for them when managing their cloud environment. With talent shortages in cloud posing an enduring problem, decision makers will benefit from focusing on training to upskill existing staff and using external support and third-party services to help augment internal capacity,” stated the report.

Overall, having seamless integration between cloud environments will remain a key enabler of flexibility. Innovative solutions, such as cloud management platforms, multi-cloud tools and automation technologies will be crucial to address challenges like cost overruns and integration struggles.