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The expansion of cloud software platforms offers enterprises diverse options for AI and data transformation strategies, with hybrid and multicloud architectures poised to dominate by 2027, according to new research from Information Services Group (ISG). By the end of 2027, over 90 percent of enterprises will leverage these models to distribute cloud-native workloads, enhancing operational agility, resilience, and compliance amid evolving AI demands.
Cloud computing has matured from early public services to a strategic IT cornerstone, tailored to enterprises' data and AI requirements. ISG's research highlights how organizations select public, private, hybrid, or sovereign platforms based on operational, financial, and regulatory needs. Hybrid models are gaining traction for their blend of public scalability and private control, enabling dynamic workload distribution to avoid vendor lock-in and optimize costs. Providers are increasingly incorporating AI and machine learning for resource management and collaboration, with innovations like AI/ML as a service easing model training without infrastructure burdens.
Hybrid cloud platforms stand out for their seamless integration and workload orchestration, allowing enterprises to respond agilely to business shifts. ISG notes that these architectures mitigate risks while supporting AI-driven applications, from predictive analytics to automated operations. Sovereign clouds address stringent EU regulations, ensuring data residency, while public options provide broad accessibility. As Jeff Orr, director of ISG Software Research, stated: "By the end of 2027, more than 90 percent of enterprises will be using hybrid cloud and multicloud architectures to distribute cloud-native workloads. This approach will allow them to maximize their operational agility, resilience and compliance."
As cloud strategies grow complex, enterprises must evaluate platforms for AI, data, and software marketplace compatibility. Mark Smith, partner and chief software analyst at ISG Software Research, advised: "Companies developing cloud strategies should assess and orchestrate their unique requirements and the potential implications of operating across cloud platforms. This research provides the ratings and insights to evaluate cloud platforms and products in terms of computing, functions, networking and storage. With it, enterprises can better understand how each product would allow them to use AI, data and software marketplaces, leading to more informed purchase decisions."
ISG's independent research, based on over a year of market analysis, aids in optimizing IT investments without provider influence.
ISG's findings underscore cloud platforms' pivotal role in AI transformation, with hybrid models enabling resilient, compliant infrastructures. By selecting Leaders like Microsoft, Oracle, and Google Cloud, enterprises can harness AI innovations for efficiency gains, positioning themselves for scalable growth in a data-driven era. Access executive summaries of the Buyers Guides via ISG's webpage.
ISG Software Research provides authoritative coverage and analysis of the business and IT software industry. It distributes research and insights daily through its user community, and provides a portfolio of consulting, advisory, research and education services for enterprises, software and service providers, and investment firms. Its ISG Buyers Guides™ help enterprises evaluate and select software providers through tailored assessments powered by ISG’s proprietary methodology.
ISG is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.
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