Leadership teams across the public and private sectors face some tough decisions that could ultimately define their technology strategies for years to come. Rising cloud computing costs and the accelerated uptake of artificial intelligence (AI) now rank highly on the agenda for many. At the same time, the ongoing reliance on legacy systems continues to impede further digital transformation.
With budgetary pressures mounting and the need to demonstrate the value of IT now more urgently than ever, leaders need to get a handle on the rapidly changing IT landscape or risk falling behind. As they plan for the future, here are my top five trends set to dominate the agenda in 2025.
Technology Evangelist at SolarWinds.
1. A return to on-premises infrastructure
Over the past decade, cloud computing has become foundational for IT infrastructure, promising flexibility, scalability, and cost efficiency. Today, many organizations are reconsidering their cloud-first strategies and looking to return to—at least partly—on-premises infrastructure.
This shift is primarily driven by rising overheads, which are exacerbated by unpredictable pricing models, data egress fees, and the increased costs associated with the shift to AI. As a result, enterprises are exploring hybrid models, such as repatriating some services, to reduce costs and gain more control over their infrastructure. Although this may seem surprising, the return to on-premises infrastructure is not about rejecting the cloud but optimizing IT investments for long-term sustainability.
2. AI—From buzzword to business process revolution
No one can doubt the impact of AI on the digital world. For many, 2025 is the year AI moves from the ‘hype phase’ to a mainstay of business processes. Organizations are no longer simply experimenting with AI–they’re embedding the technology into their workflows to drive efficiency gains and competitive advantage.
AI-driven automation is key. Routine tasks that once required significant human effort are all being optimized with AI tools. It’s a similar story with AI’s predictive capabilities reshaping decision-making at the executive level. However, to truly integrate AI into business processes, organizations must address concerns around bias, data integrity, and regulation to establish AI as a reliable, ethical, and scalable tool for transformation.
3. The end of legacy systems as companies accelerate digital transformation
Reliance on legacy IT systems has long been a challenge for enterprises, but 2025 may mark a tipping point where organizations can no longer afford to delay modernization. Companies will need to replace outdated systems to reap the benefits of AI, automation, and advanced analytics.
Still, the replacement of legacy systems is being hastened thanks to ongoing regulatory pressures and ever-present security concerns. In today’s digital world, organizations need modern IT infrastructures to support real-time data access and seamless integrations.
4. Dismantling IT silos for collaboration and better results
It’s a similar story with IT silos, which for years have stifled innovation and prevented organizations from fully realizing the benefits of emerging technologies. With AI and automation transforming industries, organizations want to foster stronger collaboration between IT, security, operations, and business teams. Without this, the roll-out of AI risks stumbling before it can succeed.
As a result, cross-functional collaboration is becoming increasingly important as organizations embrace methodologies such as DevOps, SecOps, and DataOps. Platforms that unify data access and provide real-time insights across departments will be essential in breaking down silos.
5. Leaders need to prove value amid rising costs
Without acknowledging chief information officers’ (CIOs) growing budgetary challenges, no discussion about the year ahead would be complete. As each quarter passes, IT leaders are being asked to stretch their resources further by streamlining operations, cutting redundant tools, and seeking maximum ROI.
As a result, there’s a stronger push for IT teams to demonstrate how their spending directly supports business goals. In some cases, this drives a renewed focus on IT financial management (ITFM), where CIOs are expected to align technology investments directly with business outcomes.
Looking ahead
Looking ahead, IT departments designed to show real impact—whether through cost savings, boosting revenue, reducing risks, or driving innovation—will secure continued investment. With economic uncertainty and rising costs, there’s a growing belief that IT should be regarded simply as an expense but as a key driver of business success.
The year ahead poses some interesting challenges for business leaders. AI is becoming a core part of operations; cloud costs are making companies rethink their strategies, and legacy systems are reaching their limit. At the same time, CIOs are under growing pressure to show the actual value of IT investments while bringing teams together to work more effectively. The balance between opportunities and threats will be key to success in the coming months.
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