As organizations embrace data-driven business models, remote and hybrid work environments, and global supply chains, cloud computing is more popular than ever. New capabilities and deployment models continue to emerge, offering businesses of all sizes and across all industries greater choice in how they consume, use, and benefit from their cloud investments.
Companies can take advantage of all of this without having to purchase and maintain their own IT infrastructure, helping them conserve their IT budgets. That’s particularly attractive to smaller and fast-growing businesses that can now access advanced technology previously out of reach.
What Is Cloud Computing?
Simply put, cloud computing allows companies to access computing services over the internet without purchasing or setting up their own infrastructure locally. Common business cloud services include data storage and analytics, development platforms, and business software, such as HR and ERP systems. Consumer-facing cloud platforms range from media-streaming platforms to videoconferencing software. This list is hardly exhaustive, with new cloud services constantly emerging to meet the changing demands of businesses and employees. For instance, in just a few short years, cloud collaboration platforms and videoconferencing solutions have become standard for businesses operating in remote and hybrid environments.
Companies can choose to run their entire IT infrastructure in the cloud or implement cloud-based solutions for specific aspects of their operations. Typically, they pay for the services they need on a subscription basis, giving them the flexibility to pursue the precise technology capabilities they require.
What Are the Trends in Cloud Computing?
Cloud computing trends demonstrate how this technology is changing how businesses operate and allocate their IT budgets. Significantly, public cloud users (who share computing resources) no longer have to purchase and maintain hardware and other infrastructure or manage IT upgrades and software patches—that responsibility falls on their cloud vendors. This allows businesses and their IT teams able to focus on core business objectives, such as innovation, new product or service offerings, and operational efficiency. It also helps level the playing field for growing businesses that have been unable to afford the steep price tag of advanced technologies, which they can now access through a subscription.
Underscoring this ongoing shift, IDC forecasts worldwide spending on public cloud services to reach $1.6 trillion in 2028, marking a near-99% increase over 2024, according to IDC. Additional trends revolve around new cloud delivery models, technologies, operating models, security, and application development.
24 Key Trends in Cloud Computing
Cloud computing is now seen as a linchpin for businesses that want to work smarter, focus on what they do best, and complete projects faster. From warehouse managers looking to strip complexity from their shipping operations to retail bank CIOs spearheading the development of new online banking applications, the use cases for cloud computing are virtually limitless.
With access to on-demand computing power, highly scalable platforms, and a more flexible approach to IT spending, the cloud is now an indispensable IT resource. Below we outline 24 trends, grouped into five categories, that are shaping the future of cloud computing.
Cloud Delivery Models
Cloud services can be delivered in a variety of ways. The delivery model a company chooses to use varies based on its functionality requirements and the maturity of its IT and data governance needs. While public software-as-a-service (SaaS) solutions remain the largest market segment, vendors increasingly offer solutions that cater to a wide range of customers and requirements.
- SaaS: SaaS applications deliver software over the internet that users access via a browser. The vendor manages the hardware, database, security, and infrastructure, while users typically have some ability to configure the software to their needs. In the business context, these applications are often departmental—for example, HR software for human resources and CRM for sales, service, and marketing.
- PaaS: Platform-as-a-service (PaaS) cloud solutions provide developers with the software and operating systems they need to build cloud-based applications, be it a mobile app for better inventory tracking or a consumer-facing social media platform. Companies are also using PaaS cloud systems for their network security, since they can easily be customized to suit specific security requirements. As organizations increasingly adopt cloud-native development platforms, PaaS spending is projected to reach $227.16 billion by 2030, up 65% from an estimated $137.4 billion in 2025, according to Mordor Intelligence.
- Multicloud: Certain businesses want to distribute internal computer processing and storage requirements across multiple cloud platforms and applications, often from different vendors, based on their needs. It’s common for them to choose different cloud providers for different functions, such as ERP, security, and marketing technology. While an all-in-one business management platform that supports numerous functions is the best option for many companies, they may still require complementary solutions to help with other areas of the business. Businesses might also spread out their use of public clouds for compute resources to avoid lock-in and gain leverage in negotiations. According to Flexera’s “2025 State of the Cloud Report,” 86% of organizations have a multicloud strategy. Small and midsize businesses expect a 13% increase in public cloud workloads over the coming year, compared to 7% for enterprises, the report also states.
- Private cloud: A private cloud is a cloud computing model where services are provided over private infrastructure for the use of a single business, typically managed by that same business. Businesses choose private clouds to gain the benefits of cloud services through vendors without incurring the costs of building out and maintaining the cloud infrastructure themselves.
- Hybrid cloud: Seventy percent of companies now opt for a hybrid cloud model, which combines public cloud services with the deployment of a private cloud, according to the Flexera cloud report. This is especially true of organizations that collect sensitive data or operate in highly regulated industries, such as insurance, where data privacy is essential. A hybrid approach is attractive because it offers the necessary level of control without holding businesses back from innovation and scale as they roll out new services for their customers.
- Serverless: Serverless computing is a form of cloud computing that lets businesses access IT infrastructure on demand, without the capital investment and need to manage the infrastructure themselves. The difference between generic cloud computing and serverless is based on how resources are allocated—serverless is a subset of PaaS used by companies that need a lot of processing power, but only in short bursts. Compiling software code is one example. Serverless models are gaining traction among companies big and small that want to build new applications quickly but lack the time, resources, and/or budget to deal with the infrastructure. This lets growing businesses take advantage of greater computing power at a reasonable cost, while large organizations can roll out new digital services without adding to the burden of their already-stretched IT teams. Mordor Intelligence projects the serverless computing market will nearly triple from $26.5 billion in 2025 to $76.9 billion by 2030.
Smarter Working With the Cloud
The cloud has emerged as more than a vehicle for computing power. Cloud storage and platforms also drive more efficient working practices, time and cost savings, and innovation, helping companies modernize the way they work.
- Machine learning and artificial intelligence: Cloud-based artificial intelligence (AI) technologies, including machine learning, are helping businesses draw additional value from the ever-growing volumes of data they collect. From logistics companies analyzing the efficiency of their transportation networks to ecommerce brands testing the performance of their websites in real time, AI algorithms empower businesses to glean new insights from their data and improve how they operate. Companies that don’t have the budget or talent to build AI infrastructure of their own—and many don’t—can still take advantage of it by running systems from cloud service providers.
- Automation: Automation is a key driver of cloud adoption, particularly when it comes to improving the efficiency of business operations. With their data and systems centralized on the cloud, companies can automate many of their internal processes, whether consolidating data from different locations or creating business intelligence dashboards. Today, many organizations are looking to tighten connections between different pieces of software with the aim of better managing their growing cloud footprints and making sure that solutions from different vendors work together seamlessly.
- Delegation of IT ops: As more vendors launch solutions that can be hosted on external servers, some businesses will elect to outsource portions of their IT operations to third parties. Rather than hiring dedicated teams to build, manage, and maintain their systems, companies can cut their operating costs and focus on the core product or service. That said, they must be mindful of their sensitive data and technologies when deciding which operations to outsource to avoid compromising their governance or compliance practices.
- Tailored infrastructure and verticalized clouds: Tailored infrastructure lets companies blend on-premises and cloud resources to optimize for performance, cost, or compliance. Verticalized clouds extend this approach with platforms built for specific industries. A healthcare provider, for example, might use a cloud platform with HIPAA-compliant data management and AI-powered diagnostic tools already in place, while a financial institution could leverage built-in fraud detection and regulatory reporting capabilities. The industrial cloud market is projected to reach $191.49 billion by 2030—up from $90.52 billion in 2025, according to Mordor Intelligence.
Compliance and Security Trends
IT security and data compliance are major concerns for businesses and customers alike, and today’s cloud solutions have evolved to address these concerns. Vendors have imbued their offerings with leading data controls and defenses that reduce the risk of human error when managing sensitive data.
- Complexity of compliance: With companies collecting more data from a growing number of sources and governments enacting data protection regulations such as the General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA), compliance has become a priority for companies. Cloud storage and applications improve access to business data, which gives companies added control over how the information is managed. Data governance is now a core consideration for all IT investments, particularly when implementing solutions that will handle sensitive financial data or other personal information about customers.
- Better cloud security: As cloud environments grow more complex, so does the challenge of protecting them. According to Fortinet’s “2025 State of Cloud Security Report,” 61% of organizations cite security and compliance concerns as top barriers to cloud adoption—and for good reason. Misconfigurations alone cause 68% of security incidents in public clouds. When breaches do occur, the costs add up quickly: Public cloud breaches in 2024 cost organizations an average of $4.68 million in detection, response, and lost business, according to IBM.
- SASE: With employees accessing more services and data from their own devices, which sit outside their companies’ IT networks, businesses are rethinking their approach to security and risk management. Secure access service edge (SASE), a term coined by Gartner, is a cloud-based approach to IT security that caters to the changing nature of work. Companies with a SASE architecture benefit from cloud-based network security services, such as secure gateways, firewalls, and zero-trust network access. This is a robust approach to IT security that empowers businesses to deliver new cloud services quickly and with peace of mind that their systems are well-protected.
- Cloud-based disaster recovery: While similar to traditional disaster recovery, cloud-based disaster recovery backs up a company’s data on an external cloud server and is generally more cost- and time-efficient, with the added bonus of being managed by an external provider. What’s more, businesses can add, change, and remove data from these external systems as they see fit without having to scale their own IT infrastructure. With ransomware attacks on the rise, 74% of organizations plan to use cloud-based disaster recovery services for ransomware recovery by 2026, according to Veeam. It’s also common for businesses to rely on cloud-based disaster recovery for critical servers and applications, such as large databases or ERP systems.
- Zero-trust models: Zero trust is a security framework in which every user, device, and application must continuously prove its identity before accessing resources. This “never trust, always verify” approach has become essential as cloud adoption, remote work, and cyber threats expand the attack surface beyond traditional network perimeters. The global zero-trust security market is projected to grow from $36.96 billion in 2024 to $92.42 billion by 2030, according to Grand View Research. A separate report by StrongDM shows that 84% of organizations are actively pursuing zero trust for cloud security.
Innovation and Application Development
As companies look to differentiate themselves by quickly launching new products and services, cloud-based platforms are evolving to support their development needs at a record pace. From purpose-built coding environments to decentralized data storage, cloud computing has opened the door to new possibilities in application development.
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Containers and Kubernetes: Containers—used by 91% of organizations for production, according to the Cloud Native Computing Foundation—offer businesses a dedicated, cloud-based space where they can build, test, and deploy new applications. This allows developers to focus on the details of their applications and IT teams to focus on deploying and managing solutions as they are developed, making the entire process quicker and more efficient.
Kubernetes is an open-source container orchestration system that simplifies the process of deploying and managing applications developed in containers. In addition to automated application scaling based on customer demand, the software also monitors the performance of new services so businesses can address issues proactively. The same study found 80% of respondents use Kubernetes, primarily in production.
- Edge computing: This form of cloud computing brings data processing—collection, storage, and analysis—closer to the sources generating the data, rather than a centralized cloud. This reduces latency and powers the use of edge devices. Edge computing is the driving force behind smart devices, such as smartphones, smartwatches, and smart cars, as well as the interconnection of all the data generated by these technologies. IDC forecasts global spending on edge computing solutions will reach $380 billion by 2028, up 46% from an estimated $261 billion in 2025.
- Cloud native: Cloud-native applications allow businesses to build and deliver new software to their customers more quickly than traditional, monolithic cloud applications, which run on a single hardware or software hub. Instead, cloud-native applications are built as a network of distributed containers and microservices. That means multiple teams can work on new features at the same time, accelerating the pace of innovation.
- CI/CD: Continuous integration and continuous delivery (CI/CD) automates the process of building, testing, and deploying software, helping development teams release updates faster and with fewer errors. In cloud environments, CI/CD is essential for managing frequent changes across containerized, microservice-based applications and programmable infrastructure. Teams using CI/CD tools see better performance across all key DevOps metrics, including deployment frequency and recovery time, according to the CD Foundation’s “2024 State of CI/CD Report.”
- Quantum computing: Quantum computing offers the potential to solve problems involving massive numbers of variables, such as optimizing logistics networks or simulating molecular behavior for drug discovery, exponentially faster than traditional computers. While still in their early stages, cloud-based quantum services from major providers now let organizations experiment without investing in specialized hardware. The quantum computing market is projected to grow from $1.42 billion in 2024 to $4.24 billion by 2030, according to Grand View Research.
Cloud-Based Operating Models
In addition to supporting more efficient technology operations, cloud computing has led to increased collaboration among employees across teams, departments, and geographies.
- Collaboration: Cloud collaboration platforms have made remote and hybrid work easy to achieve. Secure networks, conferencing, and communication platforms are must-haves for today’s organizations, reflected by projections that the enterprise collaboration software market will reach $109.32 billion by 2029, up 71% from $63.85 billion in 2024, according to a December 2025 report. Collaboration platforms are also becoming more advanced, ranging from spreadsheets that update in real time to advanced data warehouse modeling tools that keep teams across geographies up to date.
- Virtual cloud desktops: A virtual cloud desktop, also known as desktop-as-a-service, delivers the entire desktop operating system and software applications as a cloud-based service directly to a laptop, desktop, or other device. Companies pay only for the time their staff spend logged in to their devices, and they don’t have to pay for hardware upgrades. Virtual cloud desktops can also be scaled instantly, which means companies always have the licenses and devices they need to support their growing workforce. The desktop virtualization market is expected to reach $25.24 billion by 2030—up 65% from $15.25 billion in 2025, according to Mordor Intelligence.
- Cloud costs: The upfront costs of cloud computing are much lower than those that come with buying and setting up on-premises IT infrastructure and systems. The same applies to having to maintain and upgrade hardware and software, along with the cost of staff charged with those duties. However, that’s not to imply migrating to the cloud is always an inexpensive proposition. If not managed properly, the variable cost nature of the cloud may potentially exceed the budget and increase total costs over the long run.
- Energy efficiency: Data centers consumed an estimated 415 terawatt-hours of electricity globally in 2024—a figure the International Energy Agency expects to more than double by 2030 as AI workloads grow. Cloud providers, however, are far more efficient than on-premises data centers, reporting power usage effectiveness (PUE) ratings averaging between 1.1 and 1.2, compared to the industry average of 1.54 for enterprise and colocation data centers, according to the Uptime Institute. As energy costs rise and sustainability becomes a bigger factor in cloud provider selection, moving to the cloud can mean lower costs and a smaller carbon footprint.
NetSuite & Cloud Computing
NetSuite cloud ERP provides a unified suite of business management applications. With solutions for accounting and finance, supply chain, CRM, HR, project management, ecommerce, and more, NetSuite lets you run your entire business on a single platform. NetSuite offers all solutions through a SaaS model, meaning customers run their applications over the internet without having to buy, install, or manage IT infrastructure. This delivers a number of major benefits, including lower overhead, higher availability, anytime-anywhere access to critical applications, and the ability for IT staff to work on projects that will help the business grow rather than just on system upkeep.
Additionally, NetSuite’s SuiteCloud platform gives users and developers tools to customize, extend, test, and build applications. SuiteCloud empowers organizations to capitalize on some of the trends mentioned here as they look for new ways to leverage the cloud to push their business forward.
Cloud has become the starting point for most businesses, and adoption shows no signs of slowing. Companies continue to embrace advances in computing power, scalability, and flexibility that cloud-based systems deliver. The pace and path will vary from one business to the next, but the direction is clear—cloud is the foundation for what comes next.
Cloud Computing Trends FAQs
What are the trends in cloud computing?
Cloud computing trends span five main areas. Cloud delivery models include multicloud, hybrid cloud, and serverless computing. Smarter working with the cloud encompasses AI and machine learning integration, automation, and verticalized clouds. Compliance and security trends include zero trust and cloud-based disaster recovery. Innovation and application development cover edge computing and quantum computing. Cloud-based operating models include virtual desktops and collaboration platforms.
What are the three main key trends in cloud computing?
Key trends in cloud computing include the rapid adoption of AI and generative AI services, the growth of dedicated FinOps teams focused on managing and optimizing cloud spending, and an increased reliance on managed service providers to handle cloud complexity, according to Flexera’s “2025 State of the Cloud Report.”
What is the future for cloud computing?
IDC predicts global spending on public cloud services to reach $1.6 trillion in 2028—double 2024’s total. The future of cloud computing includes AI-driven automation, edge computing, and finding new ways to optimize costs while extracting greater value from cloud investments, according to leading analyst firms.
What are the 3 types of cloud computing?
Three primary forms of cloud computing are infrastructure-as-a-service (IaaS), software-as-a-service (SaaS), and platform-as-a-service (PaaS). With IaaS, businesses rent servers, storage, and networking infrastructure in a cloud environment. With SaaS, businesses access the applications they need over the internet and pay for what they use. With PaaS, businesses access a development platform for building or rolling out proprietary software and services.