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Kyndryl Cloud Readiness Report: Hybrid cloud shapes the future of AI and enterprise agility

1. Kyndryl's report indicates cloud strategy drives AI adoption and enterprise agility. 2. 70% of CEOs report accidental cloud environments, yet spending increased over 30%. 3. Sovereignty and security concerns influence cloud strategy for 75% of leaders. 4. 84% of companies utilize multi-cloud, focusing on control and compliance. 5. Many invest in AI for cybersecurity amidst rising cyber threats and outages.

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FAQ

Why Bullish?

Increased cloud spending indicates strong demand for Kyndryl's services, boosting growth potential.

How important is it?

The article addresses Kyndryl's core services and highlights the increasing demand for strategic cloud solutions.

Why Long Term?

Sustained investments in cloud strategy can yield ongoing revenue for Kyndryl as enterprises seek to enhance AI integration and security.

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Organizations adopt strategic cloud architectures to drive innovation, strengthen governance, and secure AI value , /PRNewswire/ -- Kyndryl, a leading provider of mission-critical enterprise technology services, today released its 2025 Cloud Readiness Report, revealing how enterprises are navigating a pivotal shift in cloud strategy that can fuel AI adoption and enterprise agility. The report reveals that while cloud computing has become the backbone of enterprise operations — growing into a more than $700 billion industry — 70% of CEOs state they arrived at their current cloud environment "by accident, rather than by design." Yet, the lack of a deliberate strategy hasn't slowed investment — organizations have increased cloud spending by over 30% on average over the past year at a time when leaders are running into AI adoption challenges, increasing security demands, and new regulatory and governance requirements. "The gap between a reactive and a deliberate cloud strategy has never been more consequential," said Nicolas Sekkaki, Global Cloud Practice Leader, Kyndryl. "With AI demanding seamless data access and governance requirements rapidly evolving, a hybrid cloud model is the differentiator that enables successful AI adoption. Organizations that design for interoperability, trust, and agility will unlock continuous innovation and integrate AI securely at scale." Key findings from the report: Sovereignty and security are reshaping cloud strategy – 75% of leaders express concern about the geopolitical risks of storing and managing data in global cloud environments, while 65% have already modified their strategies in response to new data sovereignty regulations. Hybrid and multi-cloud are now the norm – 84% of leaders intentionally use multiple clouds, and 41% are repatriating at least some data to on-premises environments — balancing control, performance, and compliance. AI depends on deliberate cloud design – 89% of leaders say cloud investments have made it easier to use AI, but 35% cite integration challenges as a top barrier to realizing ROI. Organizations are increasingly turning to specialized infrastructure, including private AI or neoclouds, both optimized for GPU-powered AI workloads, to balance computational power with cost control. Cloud security is evolving for an AI era. As threats rise — with 82% of organizations experiencing a cyber-related outage this year — enterprises are responding with more adaptable architectures and enhanced security capabilities. 91% say their cloud infrastructure provides the flexibility to adapt to new regulations, and 75% are investing in AI for cybersecurity — more than any other AI capability. From reactive to strategic: designing the future cloud The report underscores that architecture now defines enterprise control. Enterprises that approach cloud as a strategic, intentional capability — aligning infrastructure, governance, and data — are best positioned to integrate AI securely, meet regulatory demands, manage costs, and accelerate innovation. The rise of agentic AI is driving this shift. Organizations are increasingly training models in public clouds for scalability and running them in private environments for governance — combining performance with trust. Hybrid architectures are emerging as the intelligent foundation that connects public and private environments seamlessly, enabling enterprises to balance performance, security, and cost as they operationalize AI. Security and sovereignty are no longer constraints, but design principles for trust and interoperability – essential for the AI-ready enterprise. Global hyperscalers are localizing infrastructure to meet new regulatory standards, while enterprises are building architectures that allow data to move securely across borders and providers. Drawing on insights from Kyndryl's Readiness Report of 3,700 senior leaders across 21 countries and the Kyndryl Cloud Innovation Survey, data from the Cloud Readiness Report show organizations reassessing their cloud infrastructure amid AI adoption challenges, increasing security demands, and new governance expectations. To read the report, visit Kyndryl's Cloud Readiness Report About KyndrylKyndryl (NYSE: KD) is a leading provider of mission-critical enterprise technology services, offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries. As the world's largest IT infrastructure services provider, the company designs, builds, manages and modernizes the complex information systems that the world depends on every day. For more information, visit  www.kyndryl.com. Kyndryl press contact[email protected] SOURCE Kyndryl

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