Cloud investment: A core force for competitiveness
When it comes to spending, cloud will account for 67% of core IT spending in 2028, up from 53% in 2024 with AI adoption driving this expansion.3 Many organisations are prioritising strategic investments in hybrid and private cloud models. Combining public and private cloud capabilities, hybrid cloud improves flexibility and scalability. At the same time, cloud repatriation — shifting data, apps and workloads from public environment back to an on-prem infrastructure or private cloud — is highly prevalent given the demand for AI. Repatriation can help optimise and better manage costs, enhance performance, and retain greater control over sensitive data. The large majority (85%) of organisations have repatriated some portion of their cloud-deployed applications or workloads.4 The two primary drivers of repatriation are workload and application performance (31%) and security (30%).4 
That said, over three-quarters of tech decision-makers plan to increase public and private cloud spending in the next 12 months, according to Forrester’s Budget Planning Guide for 2026.5 GenAI is driving increased spending on public and private cloud services to enhance performance and access advanced tools.
As organisations push to integrate AI into day-to-day operations, cloud-enabled solutions are expanding in breadth, speed and optimisation. Investments in cloud help enable your customers to remain competitive. AI is driving this expanded spending on cloud. In parallel, software consumption is moving toward service-based delivery. Over 60% of 2024 software spending was based on as-a-service delivery, with AI-infused and AI agent-led apps further accelerating the shift, according to IDC.3