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Growing AI Needs Advance Hybrid Multicloud Maturity

Companies graduating from AI trials to production seek cloud-native platforms that unify security, observability, financial governance, ISG Provider Lens® report says

Enterprises decisively advanced in 2025 from isolated AI pilots to mission-critical AI deployments across hybrid and multicloud environments, increasing demand for new cloud infrastructure and services, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.

The 2025 ISG Provider Lens® global Multi Public Cloud Solutions report finds that enterprises are modernizing legacy environments while building cloud-native architectures to support AI-enabled applications. This has sharpened their focus on cloud infrastructure strength, operational governance and cost management.

“AI is no longer an experimental capability for enterprises,” said Anay Nawathe, ISG cloud delivery lead for the Americas. “Organizations are integrating AI into essential workflows, which raises the bar for performance, reliability, security and financial control across complex hybrid environments.”

Enterprises are building digital services on a foundation of cloud-native architectures that incorporate microservices, containers and API-first platforms, the report says. This shift has led to faster application deployment, better scalability and consistent operations across hybrid and multicloud environments. Adoption metrics show enterprises are validating this approach, with the use of Kubernetes management platforms rising sharply and most organizations reporting tighter DevOps integration and more efficient resource use, ISG says.

Operational complexity is increasing as AI workloads, open-source components and distributed systems converge, the report says. Enterprises are responding by prioritizing integrated platforms that combine cloud security, observability, Kubernetes management and governance. These capabilities help organizations eliminate data silos, automate policy enforcement and maintain trust as AI pipelines extend across infrastructure layers, ISG says.

Financial governance has become a critical concern as AI workloads put sustained pressure on infrastructure budgets, the report says. Enterprises are adopting advanced FinOps practices to gain granular insight into compute, storage and network consumption, particularly for GPU-intensive training and inference. Organizations increasingly expect FinOps tools to integrate with security and observability data to provide proactive cost control and clearer measurement of business outcomes.

“Kubernetes and cloud-native platforms now form the backbone of scalable AI operations,” said Shashank Rajmane, principal analyst, ISG Provider Lens Research, and lead author of the report. “Enterprises need consistent control across environments, and service providers play a key role in helping them operationalize AI efficiently and securely.”

The report also explores other public cloud trends affecting enterprises, including enterprises’ growing acceptance of open-source tools and rising demand for AI-based enhancements to Kubernetes platforms.

For more insights into the enterprise challenges raised by hybrid and multicloud environments, along with ISG’s advice for addressing them, see the ISG Provider Lens® Focal Points briefing here.

The 2025 ISG Provider Lens® global Multi Public Cloud Solutions report evaluates the capabilities of 77 providers across four quadrants: FinOps Platforms, Observability Platforms, Security Platforms and Kubernetes Management Platforms.

The report names Broadcom as a Leader in three quadrants. It names Dynatrace and IBM as Leaders in two quadrants each. Aqua Security, CloudBolt Software, CrowdStrike, Datadog, Elastic, Flexera, Fortinet, Grafana Labs, HCL MyXalytics, New Relic, Nutanix, Orca Security, Palo Alto Networks, Red Hat, Sentinel One, Splunk Observability, SUSE, Sysdig, Ternary, Trend Micro and Wiz are named as Leaders in one quadrant each.

In addition, CoreStack and LogicMonitor are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

In the area of customer experience, LTIMindtree is named the global ISG CX Star Performer for 2025 among Multi Public Cloud - Solutions providers. LTIMindtree earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

Customized versions of the report are available from Dynatrace, Mavvrik and Ternary.

The 2025 ISG Provider Lens® global Multi Public Cloud Solutions report is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens® Research

The ISG Provider Lens® Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

About ISG

ISG (Nasdaq: III) 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.

AI is no longer an experimental capability for enterprises. Organizations are integrating AI into essential workflows, which raises the bar for performance, reliability, security and financial control across complex hybrid environments.

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