Insights / Research Report / Private AI, Virtualization, and Cloud: Transforming the Future of Infrastructure Modernization
July 22, 2025

Private AI, Virtualization, and Cloud: Transforming the Future of Infrastructure Modernization

Scott Sinclair
Practice Director, Infrastructure, Cloud & DevOps

Emily Marsh
Associate Research Director

Market Topics

Cloud & IT Operations Data Analytics & Artificial Intelligence Infrastructure

Recent technological shifts, including the widespread adoption of AI and shifts in the cost of licensing for hypervisor technology, are forcing IT decision-makers to reevaluate their preconceptions in hybrid cloud architecture and design. Cost increases in hypervisor technology have emerged across the IT world, leading to the exploration of alternatives. The prioritization of AI has fueled an increased focus on both the importance of private data and the need for greater control of infrastructure, reaffirming the significance of data centers, colocation, and hosted private cloud options for private AI.

To gain further insight into how these trends are impacting the future of on-premises infrastructure investments, architecture, and design, Enterprise Strategy Group surveyed 380 IT professionals at organizations in North America (U.S. and Canada) involved with or responsible for evaluating, purchasing, managing, and building application infrastructure.

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