"In the company's annual Cloud Readiness Report 70% of CEOs admit they built their current cloud environment "by accident, rather than by design" - this often entailed periodic upgrades aimed at addressing short-term needs, rather than focusing on longer term strategic improvements. Kyndryl said this shows that many lacked a "deliberate strategy" when pursuing cloud transformation projects, and the effects of this are starting to show with huge workload pressure placed on cloud environments, as well as growing security threats and evolving regulatory requirements."
"AI is among one of the key factors bringing this lack of clear cut focus to light in 2025, according to Kyndryl. Organizations have increased cloud spending by 30% on average so far this year in a bid to supercharge AI adoption and build out infrastructure capacity to meet demand. 89% said these cloud investments have "made it easier to use AI" and have proved beneficial in underpinning adoption projects."
The cloud is a $750 billion industry that underpins critical digital-economy applications and platforms. Many enterprises migrated to cloud over the past decade and ended up with sprawling, splintered architectures lacking clear long-term goals. Seventy percent of CEOs admit current cloud environments were built "by accident, rather than by design," often relying on short-term upgrades instead of strategic plans. Those piecemeal environments are creating workload pressure, growing security threats, and mounting regulatory demands. Cloud success now requires deliberate design, treating cloud as a foundation for intelligence, adaptability, and trust. Organizations increased cloud spending roughly 30% in 2025 to accelerate AI, but integration challenges (35%) and poor designs hamper ROI and innovation; hybrid and multi-cloud approaches are under renewed focus.
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