Core Insights - The 2025 Cloud Readiness Report by Kyndryl highlights a significant shift in cloud strategy among enterprises, emphasizing the need for deliberate cloud architectures to enhance AI adoption and enterprise agility [1][2][3] Cloud Strategy and Investment - Cloud computing has evolved into a $700 billion industry, yet 70% of CEOs report their current cloud environments were developed "by accident" rather than through a strategic plan [2] - Despite the lack of a deliberate strategy, organizations have increased cloud spending by over 30% on average in the past year, amidst challenges in AI adoption and rising security demands [2][8] Transition from Reactive to Strategic - The report stresses that a strategic approach to cloud architecture is essential for enterprises to integrate AI securely, manage costs, and comply with regulatory demands [4][5] - Organizations are increasingly adopting hybrid cloud models, which combine public and private cloud environments to balance performance, security, and cost [5][8] Security and Sovereignty - Security and data sovereignty are now viewed as design principles rather than constraints, with 75% of leaders concerned about geopolitical risks associated with global cloud environments [6][8] - 65% of leaders have modified their strategies in response to new data sovereignty regulations, indicating a shift towards hybrid and multi-cloud environments [8] AI Integration Challenges - While 89% of leaders believe cloud investments facilitate AI usage, 35% identify integration challenges as a major barrier to achieving ROI [8] - Organizations are increasingly utilizing specialized infrastructure, such as private AI or neoclouds, optimized for GPU-powered AI workloads to balance computational power with cost control [8] Evolving Cloud Security - With 82% of organizations experiencing cyber-related outages this year, there is a push for more adaptable architectures and enhanced security capabilities [8] - 91% of enterprises report their cloud infrastructure can adapt to new regulations, and 75% are investing in AI for cybersecurity, more than any other AI capability [8]