Technologies, spending, and sustainability - will 2025 mark a turning point?

As a year, 2024 was marked by numerous uncertainties. On the geopolitical front, various conflicts and regional tensions heightened international concerns. Economically speaking, inflation, fluctuations in financial markets, and public debt maintained an atmosphere of caution among investors and decision-makers. Environmental challenges, including unexpected climatic events and the growing demand for energy in increasing volumes added to the uncertainty. Finally, rapid advancements in emerging technologies and the rise in cyber threats underscored the need for adaptability and resilience more than ever before.

With so much uncertainty behind us, 2025 is poised to be a tipping point where emerging technologies, economic pressures, and sustainability imperatives will redefine strategic corporate priorities. Over the next twelve months, the technology sector will undergo significant transformation, with a more selective approach to projects involving new technologies, signaling the end of an era of unrestrained investments and ushering in a more structured and sustainable phase of growth.

Spending to accelerate in 2025

The year 2024, characterized by elections in numerous countries, brought significant uncertainty to the global stage. Crucial decisions on issues such as global debt, public policies, and investments in the public sector were postponed, awaiting clear directions from new governments. In 2025, this pent-up demand for spending across various sectors is expected to materialize.

Nationally, discussions will center on balancing global debt management with the necessary investments in infrastructure. The year will be marked by these debates as new governments aim to deploy their strategies, strengthen public sectors, and stimulate private investment.

AI projects to face stricter scrutiny

In 2025, businesses will adopt a more selective approach to AI projects, marking the end of the unchecked enthusiasm of the early post-ChatGPT years. Spending rationalization will become essential, anticipating potential fatigue from the technological frenzy and facing increased pressure to demonstrate tangible returns on investment. Generic AI solutions have given way to more targeted approaches, such as Retrieval-Augmented Generation (RAG), which combines standardized personalization to improve results while mitigating risks like hallucinations, and the creation of domain-specific language models with lower inference costs. Strategies like these will offer concrete benefits in accuracy and efficiency, avoiding the high costs of training custom models.

Sustainability goals under pressure amid AI growth and new datacenters

The rising demand for AI and storage challenges sustainability goals, with increased energy consumption temporarily sidelining energy reduction initiatives. However, sustainability remains a strategic priority, driving companies to strengthen their practices. Key considerations that will be central to discussions include the energy transition and strategies like nuclear energy adoption for datacenters. Impact Accounting, analyzing environmental challenges and associated costs, will become a standard in corporate management. Lastly, the construction of new datacenters, particularly to meet the demands of sovereign cloud initiatives, will raise questions about energy supply and compatibility with sustainability objectives.

Has the cloud peaked?

Cloud adoption is now viewed through a more pragmatic lens. Between growing regulatory constraints, increased awareness of its limitations, cost pressures driving repatriation, and geographical restrictions, 2025 could mark the zenith of cloud adoption.

From a regulatory perspective, the EU’s implementation of DORA (Digital Operational Resilience Act) in early 2025 will require cloud providers to undergo rigorous testing and share resilience plans with regulators to ensure compliance. Hyperscalers will also face heightened responsibilities, especially in the financial sector, under threat of non-compliance.

Furthermore, the impact of Broadcom’s acquisition of VMware will continue to shape the market. Organizations are calculating how they can optimize their VMWare costs, considering if they will move, and how to maintain the service levels they’ve become used to. In 2025, it will be critical to see whether customers embrace this new dynamic or turn to alternative solutions. Many organizations are still exploring available options, evaluating their effectiveness and suitability for their needs. 2025 will be a pivotal year for strategic adjustments.

In conclusion, 2025 will emerge as a defining year where innovation, resilience, and sustainability must be balanced to enable businesses to meet challenges while seizing opportunities in a rapidly evolving world. Organizations capable of navigating this complex environment will be those best positioned for success.