APAC Rackspace Technology Survey Reveals Hybrid Cloud and AI Integration as Key Drivers for IT Innovation in 2025

A new global survey of more than 1,400 IT decision-makers conducted by Rackspace Technology®, a leading end-to-end, hybrid, multicloud, and AI solutions company, finds that organisations continue to shift away from a single cloud approach toward more flexible hybrid cloud environments. Over 90% of the APAC survey respondents report that they plan to make significant changes in their cloud strategy over the next two years. Of those respondents, 46% said that a hybrid cloud for multi-environment deployment will be critical to their IT operations over the next 12-24 months.

Main reasons for APAC respondents to utilise a hybrid cloud environment include improved reliability and availability (72%),  followed by Enhancing data security and compliance (56%)

Despite the steady adoption of public clouds, IT teams are not preparing to abandon private clouds. Over 72% of APAC respondents stated that their organisations had considered repatriating at least a portion of their workloads from public clouds back to private clouds or on premises infrastructure, citing data security and compliance requirements (49%), better integration with existing systems (42%), and skill gaps or staffing limitations in managing cloud environments (38%) as rationales. For those that had recently repatriated workloads, nearly 80% of respondents reported that it had resolved those concerns.

Although the importance of cloud deployments is widely recognised, the survey reveals a significant gap in its full adoption among enterprises. Only 11% of APAC respondents reported that cloud adoption is fully integrated into their business strategy and aligned with their business objectives with advanced practice areas in place.

“As AI continues to drive rapid advancements, IT leaders are reevaluating their approach to workload management. Instead of updating existing infrastructure, they are designing entirely new cloud strategies to meet evolving demands,” said Srini Koushik, President AI, Technology and Sustainability at Rackspace Technology. “To future-proof their organisations, many are transitioning from a ‘one-size-fits-all’ model in favour of a more flexible and resilient multi-strategy approach. This pivotal moment for hybrid and multi-cloud solutions empowers organisations to choose services tailored to their unique technical requirements and workloads.”

“For APAC organisations to achieve business and technology benefits such as operational efficiency and enhanced data analytics and insights, it is imperative for organisations to develop a clear AI and cloud strategy. As organisations shift away from a single-cloud approach, they are embracing flexible, multi-environment solutions to meet evolving business needs. This transformation is not just about technology but about crafting a resilient foundation for future growth while ensuring data security and compliance remain at the forefront,” said Adhil Badat, Chief Operating Officer for Asia-Pacific Japan at Rackspace Technology.

A driving force behind the desire for multi-solution approaches is the ease with which organisations can move data between different cloud environments, with 83% of APAC respondents stating that they can transfer workloads seamlessly between the public and private cloud, and 79% reporting that they can do so between multiple public cloud hyperscalers.

AI is the Catalyst for Next-Gen Cloud Developments

Development of AI initiatives remains a key focus for IT teams, with 84% of APAC respondents reporting that they have taken steps to integrate their AI and cloud strategies. When asked about the business outcomes that were driving the integration of AI and cloud, 44% reported that their goal is to enhance operational efficiency while 44% are leveraging AI to improve the insights generated by data analytics.

Major Hurdles Remain to Full Implementation of Cloud & AI Strategies

Although IT leaders are bullish on the prospect of cloud and AI integrations, talent and resource shortages remain major pitfalls that could limit their ability to fulfil these goals. Ensuring data and compliance was cited by 48% of APACrespondents as a constraint, followed by insufficient budgets are limiting their ability to meet business demands (45%). This trend is consistent with insights from Forrester’s 2024 State of Cloud in the US Report. Their research found that U.S enterprise cloud decision-makers saw AI/ML as the most critical cloud technology area, with 24% looking to hire new staff skilled in these areas, and an additional 25% planning to retrain existing staff to meet these needs.

Looking Ahead: New Innovations Are Coming but Security Remains Key Focus

According to the survey, enterprises remain bullish on their efforts to integrate AI and more advanced cloud strategies. 43% of APAC respondents listed autonomous cloud management as one of their top priorities, followed by cloud native AI/ML services (42%) and multi-cloud and hybrid cloud optimisation (41%).  46% of respondents listed Cloud Native AI/ML Services as one of their top priorities, followed by multi-cloud and hybrid cloud optimisation (42%), and Cloud Based Sustainable Computing (40%).

Data Security & Compliance remain a key focus with an overwhelming majority (97%) of APAC organisations surveyed having established procedures and policies for data privacy and compliance in cloud environments. 39% of APAC respondents also report that they are leveraging AI for advanced security and threat detection.

Click here for the full 2025 State of Cloud Report white paper.