HCLTech 2025 Report: Multicloud, GenAI, Modernisation Essential
Cloud adoption is no longer optional it’s essential. HCLTech’s 2025 Cloud Report, Cloud Evolution: The Mandate to Modernize, reveals a striking trend: 87% of enterprises now use multiple cloud providers, while 98% are actively exploring Generative AI (GenAI). This signals a shift from basic cloud migration to integrated digital transformation.
As businesses across the globe and particularly in the Middle East align with national digital agendas, cloud strategy is evolving into a core business function. Enterprises are no longer treating cloud as a supportive tool. Instead, they are redesigning their infrastructure to prioritise agility, innovation, and resilience.
The findings also highlight the deliberate nature of current cloud decisions. Multicloud strategies are 2.2 times more intentional than they were three years ago. Companies are leveraging the strengths of various providers to ensure cost-efficiency, improve service reliability, and avoid vendor lock-in. In the Gulf region, where data sovereignty and compliance are top priorities, this diversified approach has become not just strategic but vital.
GenAI and Hybrid Cloud: Catalysts for Change
Enterprises are not waiting for AI to mature they are actively building custom GenAI models tailored to proprietary business data. These models serve diverse purposes, from automating legal reviews to refining retail forecasts. However, deploying GenAI at scale demands more than cloud access. A hybrid architecture is quickly emerging as the preferred path forward.
Why hybrid? Because 55% of data still resides on-premises. Hybrid solutions blend the scalability of public cloud with the control of on-site environments. This not only reduces latency but also ensures compliance with regional regulations. Consequently, hybrid cloud has become the backbone of scalable AI deployment.
Moreover, GenAI requires significant computing power, fast data access, and robust security. By using hybrid models, organisations can meet these demands while maintaining flexibility. For Middle Eastern companies aiming to deploy AI responsibly and at scale, a hybrid-first mindset is essential.
Beyond Migration: The Modernisation Imperative
Rehosting applications is no longer enough. Today, 80% of organisations agree that the true value of the cloud is unlocked only through application modernisation. Rather than simply moving systems to the cloud, businesses are refactoring them breaking monoliths into microservices, integrating DevSecOps practices, and deploying internal platforms for developer enablement.
This transition enables teams to work more efficiently and release features faster. Notably, 73% of surveyed companies reported active refactoring as part of their migration strategy. The result? Faster innovation cycles and better scalability.
In fast-growing Gulf markets, where industries like finance, logistics, and retail are digitising rapidly, this modernisation is crucial. Without it, even the most robust cloud plans may fall short. Additionally, third-party consultants are proving valuable: 83% of enterprises working with external experts saw measurable improvements in speed, efficiency, and GenAI readiness.
By embracing hybrid architectures, prioritising modernisation, and treating GenAI as a core workload, Middle Eastern enterprises can navigate complexity with confidence. The path forward is clear: invest wisely, modernise intentionally, and build a cloud foundation ready for the future.
