Every year, we team up with Enterprise Technology Research to sift through fresh data and create our predictions for the upcoming year. This year, we’re diving into our top 10 predictions for enterprise technology in 2025, mixing favorites from past years with some new insights.
Security Takes Center Stage
Each year, we receive thousands of predictions from tech companies and experts. We’ve organized them into categories to see trends over time. This year, cybersecurity leads the pack again, followed closely by artificial intelligence. Interestingly, while AI took the top spot last year due to generative AI, security regained its lead this year.
We noticed fewer predictions about DevOps this year, and digital transformation has largely dropped off the radar. On the other hand, Software as a Service (SaaS) still shows promise, often featuring AI elements.
Here are a few standout predictions we received: Kevin Cochrane from Vultr Inc. mentioned, Vendor Predictions that Don’t Suck. He hinted at:
- Cloud innovation will stall unless walled gardens are broken down.
- All hail the sovereign cloud.
Another intriguing prediction comes from Zencoder’s Andrew Filev, who stated:
- His mom will write her first software program in 2025.
And from Tarun Desikan of SonicWall, we have a serious caution:
- A major cyberattack will occur, utilizing highly advanced impersonation techniques enabled by AI.
Let’s move on to our predictions for this year!
A Quick Look at Our 2025 Predictions
Our predictions cover a range of topics such as tech spending, security, AI, cloud computing, and more.
1. Tech Spending to Rise by Over 5%
Our research predicts that tech spending will increase by about 5% in 2025. After a dip caused by geopolitical issues and economic uncertainties, businesses are ready to invest again, especially small and medium enterprises.
- Spending rebound: After a decline, spending is picking up now.
- Sector growth: Financial firms show the highest growth rates.
- New projects: Many companies are launching new IT initiatives.
Bottom line: We expect a modest but real recovery in tech spending this year.
2. Cybersecurity Platforms Will Gain Ground
As cyber threats increase, organizations will lean more toward comprehensive cybersecurity platforms. This shift results from the complexities and dangers of the current landscape.
Key points:
- The threat landscape is evolving, making integrated solutions more attractive.
- Major players are expanding their offerings to become “one-stop shops.”
- Companies are increasingly valuing platforms like Microsoft for their integrated security capabilities.
3. Agentic AI Lacks “Aha Moment” in 2025
We suggest that 2025 won’t see the breakthrough for agentic AI that many hope for, mainly due to security and privacy concerns.
Despite signs of investment in AI, organizations are cautious because of unresolved security issues.
4. Companies Shift Focus to On-Premises AI
We predict a shift in focus for cloud “repatriation” initiatives towards building AI capabilities on-premises.
Many organizations prefer to keep their AI processing close to their data, citing cost and security concerns as major reasons.
5. AI Inference at the Edge to Drive Revenue
Edge computing will become crucial for processing data quickly and will show significant revenue in 2025.
Key points:
- Edge computing is essential for industries requiring lower latency.
- Edge solutions will complement cloud systems rather than replace them.
- Investment in specialized hardware for edge AI inference is set to rise.
6. Public Cloud Revenue Will Cross $1 Trillion
Public cloud revenue is expected to soar beyond $1 trillion by 2025, driven by consistent demand for computational power.
Key insights:
- Cloud spending is predicted to grow significantly, exceeding 9%.
- SaaS remains strong, though it is growing at a slower rate.
- The need for cloud-based resources for AI applications is paramount.
7. AI Will Enhance RPA, Not Replace It
AI and robotic process automation (RPA) will work together, with AI boosting RPA functionalities.
Key points:
- Spotting an uptick in RPA spending as AI capabilities enhance traditional automation.
- AI augments RPA, making it more effective in streamlining tasks.
8. IPO Activity Will Revive in 2025
We foresee initial public offerings (IPOs) to rise, especially in the second half of 2025.
Private equity firms will push for public offerings in response to liquidity needs and rising interest rates.
9. Data Control Shifts to AI and Catalogs
We expect a shift in data management control from databases to governance catalogs, while the true value will lie in intelligent applications.
This shift will emphasize the importance of data governance and quality in AI applications.
10. AI Will Not Eliminate Jobs in 2025
Finally, we predict that AI won’t lead to massive job losses in 2025; instead, it will create new roles that require fresh skills.
Many organizations expect to increase hiring, indicating a shift in necessary skill sets rather than a reduction in workforce.
Bonus Prediction: Intel’s Future
One more thought: we predict Intel will need to spin off its foundry business in 2025 to remain competitive, stressing the importance of its independence for the tech industry.
What do you think about these trends? How do you see 2025 shaping up?
Image: theCUBE Research/DALL-E
Disclaimer: The views expressed reflect personal opinions and do not constitute financial advice.
Disclosure: Many companies mentioned are sponsors of theCUBE.
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