Cloud Platforms Key to Enterprise AI Transformation, ISG Says

The range of available cloud software platforms has expanded significantly in recent years, presenting enterprises with many options when formulating strategies for applications of AI and data transformation, according to new research from global AI-centered technology research and advisory firm Information Services Group (ISG) (Nasdaq: III).

The ISG Buyers Guides for Cloud Platforms, produced by ISG Software Research, provide the rankings and ratings of 30 software providers and their products to support cloud applications and operations. The research finds that cloud computing has evolved from a niche concept in the early 2000s, focused on public cloud services, into a core component of IT strategy that can take many forms depending on the data and AI needs of enterprises and their applications. Organizations can now choose from public, private, hybrid and sovereign cloud platforms by evaluating their own operational, financial and regulatory requirements, with many seeking hybrid solutions to blend the strengths of different types of platforms.

“By the end of 2027, more than 90 percent of enterprises will be using hybrid cloud and multicloud architectures to distribute cloud-native workloads,” said Jeff Orr, director, ISG Software Research. “This approach will allow them to maximize their operational agility, resilience and compliance.”

Each type of cloud platform addresses a specific challenge, making it best suited to a certain set of enterprises, ISG’s research finds. Public clouds offer cost-effective storage and computing capacity, serving the broad needs of enterprises to adapt their existing infrastructure. Private clouds cater to enterprises with specific security requirements. Sovereign clouds provide infrastructure in a particular geography, serving organizations that need to comply with stringent data privacy and protection regulations that are constantly evolving, especially in the EU.

As enterprise cloud software strategies become more sophisticated, hybrid cloud is quickly becoming the preference of companies seeking flexibility, the research finds. It provides the scalability of a public cloud while offering the security and control of a private cloud for specific workloads. Enterprises can distribute resources across different environments, which gives them the agility to respond swiftly to evolving business needs. The key characteristics they look for in hybrid cloud platforms are seamless integration and dynamic workload management. Companies can also engage with multiple cloud providers and distribute workloads across platforms, mitigating vendor lock-in while optimizing efficiency.