The rise of purpose-built clouds

"Historically, many enterprises have avoided multicloud deployments, citing complexity in managing multiple platforms, compliance challenges, and security concerns. However, as the need for specialized solutions grows, businesses are realizing that a single vendor can't meet their workload demands. In practice, this may look like using AWS for machine learning hardware, Google Cloud for Tensor Processing Units (TPUs), or IBM's industry-specific solutions for sensitive data."

"Another major reason for purpose-built clouds is data residency and compliance. As regional rules like those in the European Union become stricter, organizations may find that general cloud platforms can create compliance issues. Purpose-built clouds can provide localized options, allowing companies to host workloads on infrastructure that satisfies regulatory standards without losing performance. This is especially critical for industries such as healthcare and financial services that must adhere to strict compliance standards."

Multicloud adoption is accelerating as purpose-built clouds drive organizations to combine specialized platforms with commodity cloud services. Many enterprises previously avoided multicloud due to management complexity, compliance challenges, and security concerns. Specialized needs now push workloads to vendors with appropriate hardware or industry features, such as AWS for machine learning hardware, Google Cloud for TPUs, or IBM for industry-specific solutions. Critical workloads increasingly run on tailored platforms while simpler tasks use commodity clouds. CIOs must manage hybrid and multicloud deployments and ensure compatibility with legacy systems. Data residency and stricter regional rules motivate localized infrastructure to meet regulatory standards without sacrificing performance.

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