Multicloud adoption is accelerating
The rise of purpose-built clouds is also driving multicloud strategies. 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. This turns multicloud from complexity into a necessity for competitiveness. Purpose-built clouds help companies direct workloads to platforms best suited for each task.
This hybrid approach to multicloud deployment represents a fundamental shift. Organizations increasingly use tailored solutions for critical workloads while relying on commodity cloud services for simpler tasks. As a result, CIOs are now responsible for managing hybrid and multicloud deployments and ensuring compatibility between legacy systems and newer, specialized cloud platforms.
AI and data residency
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. Purpose-built platforms enable companies to store data locally for compliance reasons and enhance workloads with features such as fraud detection, regulatory reporting, and AI-powered diagnostics.