Just a few months ago, it looked like the Cloud industry was settling down (just like Taylor and Travis™).
The frantic rush to adopt AI appeared to be giving way to more measured planning. Businesses were talking more about architecture, governance, and strategy, and it all felt like the next phase of AI maturity had arrived.
Then things shifted. Again.
Our latest State of the Cloud Report shows the industry, authored by Dr Brooke Edge (above), has changed direction again. AI isn’t slowing down. It’s accelerating. At the same time, concerns about AI security have reached their highest level yet. So rather than replacing uncertainty, confidence is growing alongside it.
That’s one of several fascinating findings from latest in our quarterly research series, based on more than 2,400 responses collected across four survey waves from Cloud professionals worldwide.
AI adoption has entered a new phase
Almost 60% of respondents now rank AI among their top three business priorities—the highest figure we’ve recorded. That’s a significant jump from 45% less than a year ago.
Here’s the twist: the organizations most excited about AI are also among the most concerned about the risks it creates.
Our analysis found almost no difference between AI enthusiasts and AI skeptics when it comes to worries about security, cost or workforce impact. The people embracing AI understand its risks just as well as everyone else—they’ve simply decided they can’t afford to wait for certainty before moving ahead.
Cybersecurity is becoming impossible to ignore
One trend has remained remarkably consistent: concern about AI-related security vulnerabilities has risen every single wave, climbing from 57% to 76% since September 2025. No other metric in the report shows such sustained growth.
Yet the signs are that security investment isn’t keeping pace. Cybersecurity remains important, but it hasn’t been prioritized in line with growing concern. Many organizations recognise the risks but are still focusing resources on deploying AI rather than protecting it.
That widening gap could become one of the defining challenges for the Cloud industry over the next 12 months.
Strategy takes a back seat
Another surprise is what didn’t happen. In our previous report, business strategy appeared to be making a comeback as organisations shifted from experimentation towards structured implementation. Instead, strategy has slipped backwards.
Business strategy as a priority fell from 36% to 29%, suggesting many organizations have returned to moving at AI speed rather than planning for long-term transformation.
It seems that AI implementation is outpacing the infrastructure planning needed to support it. For Cloud providers and infrastructure vendors, that’s both a warning and a major commercial opportunity.
What happens next?
The report doesn’t just explain where the industry is today—it explores where it could be heading next.
Will AI and uncertainty simply become the new normal? Will businesses finally consolidate their strategies? Or will today’s planning gaps eventually trigger a major correction?
Our researchers outline three possible scenarios for late 2026, along with the indicators to watch over the coming months.
Download the full report
The CloudFest State of the Cloud Report – Summer 2026 goes far beyond the headline statistics.
You’ll find out:
- Why AI enthusiasm and AI anxiety are no longer opposites.
- What four quarters of data reveal about long-term industry trends.
- How attitudes to sovereignty, sustainability and geopolitics are evolving.
- What the findings mean for Cloud service providers, enterprise IT leaders, infrastructure vendors and solution providers.
- Three evidence-based scenarios for where the industry is heading next.
If you want to understand where the Cloud industry is moving—and where the next opportunities are emerging—the full report is essential reading. Download it for free.
