U.K. Enterprises Accelerate Shift to Hybrid and Multicloud Platforms for AI Workloads and Enhanced Security

Enterprises across the U.K. are accelerating the modernization of their cloud infrastructures, driven by the increasing adoption of AI and machine learning (ML) workloads and the need for robust data protection and regulatory compliance. According to a new research report by Information Services Group (ISG), a global AI-centered technology research and advisory firm, there is a marked trend toward hybrid and multicloud platforms. These platforms offer the flexibility to align workloads with appropriate environments, enhance security, and optimize costs, making them the preferred choice for many U.K. businesses. The 2025 ISG Provider Lens® Private/Hybrid Cloud — Data Center Services report for the U.K. predicts significant growth in hybrid and multicloud adoption over the next three years. Key drivers include performance, data sovereignty, security, and regulatory pressures. Hybrid cloud solutions enable organizations to leverage private cloud resources for enhanced security, particularly vital in highly regulated industries like healthcare and finance, while benefiting from the cost savings and scalability of public clouds. Real-time monitoring and ML are increasingly integrated into private cloud environments to bolster data protection. This dual approach helps organizations manage AI and analytical tasks more efficiently, ensuring better resource utilization and security. ISG's report notes that by 2025, 75% of enterprise data will be processed outside traditional data centers or cloud environments, signaling a major shift in data management practices. Small and midsize enterprises (SMEs) are also embracing hybrid and multicloud platforms, focusing on custom solutions to meet specific industry needs. Modular data center designs are gaining popularity due to their lower total cost of ownership and faster deployment capabilities. The U.K. government's recognition of data centers as critical infrastructure and streamlined planning laws further support this trend. By 2028, the capacity of U.K. data centers is expected to double, driven by the growing demand for generative AI (GenAI), cloud computing, and government-backed infrastructure projects. The report highlights the importance of sustainability and the integration of agentic AI into hybrid and private cloud environments. Leading providers in the U.K. market include Fujitsu and Kyndryl, which are named as Leaders in three quadrants each. Other prominent firms named as Leaders include Accenture, Capgemini, Claranet, DXC Technology, Ensono, Hexaware, Infosys, Pulsant, Rackspace Technology, T-Systems, and TCS, among others. LTIMindtree, Mphasis, and NTT DATA are recognized as Rising Stars, indicating promising future potential. In terms of customer experience, Persistent Systems stands out as the global ISG CX Star Performer for 2025, earning the highest customer satisfaction scores in ISG’sVoice of the Customer survey. The firm's recognition underscores its strong performance and commitment to client satisfaction. Industry experts commend the strategic move toward hybrid and multicloud environments. Anthony Drake, a partner at ISG, emphasizes that these platforms are essential for protecting organizations against cyber threats and achieving cost efficiency. Meenakshi Srivastava, the lead analyst for the ISG Provider Lens Report, points out that the U.K. cloud market is transforming rapidly, with a focus on agility through tailored solutions and modular data center designs. ISG, founded in 2006, has established itself as a trusted advisor to over 900 clients, including 75 of the world’s top 100 enterprises. With a team of 1,600 professionals worldwide, ISG provides proprietary market data and in-depth provider ecosystem knowledge. The firm’s AI-centric approach helps organizations achieve operational excellence and faster growth, positioning it at the forefront of technology and business services. The 2025 ISG Provider Lens® Private/Hybrid Cloud — Data Center Services report is available to subscribers or for one-time purchase, offering detailed insights and analysis to guide enterprise decisions in selecting appropriate sourcing partners. Customized versions of the report are also available from providers like Hexaware and Unisys, further supporting the tailored approach to cloud solutions that many U.K. enterprises are pursuing. This strategic shift toward hybrid and multicloud platforms in the U.K. reflects a broader global trend, driven by the ever-increasing importance of AI and the need for secure, efficient, and scalable data management solutions. The collaboration between ISG and U.K. enterprises highlights the ongoing commitment to leveraging cutting-edge technology to drive business success and resilience.