By President Ntuli, Managing Director of HPE South Africa

As we step into 2025, the technological landscape is set to undergo some of the most thrilling transformations yet. However, with these advancements come new challenges for business leaders. From runaway IT costs to the urgent need for comprehensive AI strategies that drive sustainable business impact, executives must be prepared to navigate a complex and evolving environment. Here, we delve into the top five trends that will define 2025 and provide insights on how to strategically manage these changes and drive success.

Balancing cost with modernisation – the tipping point

With South African businesses under significant pressure to manage and reduce IT costs, company leaders are finding themselves in a tough spot. They need to balance these rising cost pressures with the urgent need to modernise, all while keeping a lid on operational complexity. These pressures will reach a tipping point in 2025, thanks to some unexpected cost spikes and advancements in generative AI. Because of this, many businesses are taking a hard look at their long-term IT strategies, trying to figure out how to handle the rising costs of their virtualised workloads, support both current and future needs, and streamline IT operations in an increasingly complex environment.

As we head into the new year, more organisations in South Africa are exploring unified management solutions like HPE VM Essentials. They allow for the management of Kernel-based Virtual Machines (KVMs) and VMware-based virtual machines from a single interface, which helps reduce complexity and costs through efficient resource utilisation and flexible consumption models.

Redefining the ‘why’ behind cloud migration

Cloud repatriation is taking centre stage in 2025 as businesses reassess their public cloud strategies. Escalating costs and the need for better budget management are driving this trend. Many organisations are now opting for a strategic mix of private and public cloud solutions to balance expenses and manage resources effectively. As a result, FinOps is becoming essential. Projected to hit almost $40 billion by 2034, the burgeoning cloud FinOps market underscores the need for skills and resources in this area.

A significant trend also driving cloud repatriation is the focus on regulatory compliance, especially in sectors like financial services. Around 42% of South African CEOs believe government regulations will reshape their operations in the next three years. Concerns over recent public cloud outages and ransomware attacks have made businesses more aware of their data's location and control. In a public cloud scenario, an organisation must depend on the provider to recover data during an outage, highlighting the necessity for greater control over their data.

AI will move from conversation to clear use cases

A recent PwC survey revealed that over half of the interviewed South African CEOs anticipate generative AI will greatly influence their businesses within the next three years. However, nearly two-thirds believe it hasn't seen widespread adoption in the past year. This disconnect has caused frustration, as AI discussions are happening in boardrooms, but practical, impactful use cases are still lacking.

For broader AI adoption within an organisation, it's essential to identify clear use cases and demonstrate the tangible benefits to the business unit. Without concrete evidence showing how an AI project will improve either the top or bottom line long-term, it will be challenging to gain the necessary support from stakeholders who can champion the initiative.

As 2025 unfolds, businesses will need to focus on use cases that can deliver tangible and sustainable results. For instance, chatbots are an excellent way to achieve quick wins by enhancing customer experience. Likewise, AI-driven visibility and automation in IT operations can provide organisations with the insights needed to speed up tasks and boost efficiency.

To accelerate the implementation, companies will also turn to prebuilt AI systems that will allow them to kick-off their AI adoption without starting from scratch. For instance, HPE's NVIDIA AI Computing offers a range of solutions to help businesses develop and deploy AI applications quickly and sustainably.

AI will accelerate the boom in edge computing

The International Data Corporation expects global spending on edge computing to grow steadily, reaching nearly $378 billion by 2028. This boom correlates with the rapid adoption of AI solutions, as certain applications require instant data analysis from IoT devices. For instance, in a mining operation, critical decisions such as safety measures must be made quickly based on real-time data. Processing this data at the edge, especially when the mine is in Kimberley and the head office is in Johannesburg, is crucial to avoid latency and performance issues. This trend towards edge computing will continue to surge as the need for immediate insights grows.

Focus will shift to high-performance computing

The exascale era is here, with the supercomputer market expected to grow by almost 10% annually from 2024 to 2030. With data being the foundation for most digital processes and applications, the need for powerful computing capabilities that can process massive amounts of data is increasing. Utilising high-performance computing (HPC) systems, businesses are able to harness that data for more advanced and complex workloads, gaining fresh insights and enabling new applications that allow them to stay competitive.

From a broader perspective, with the increasing development and use of AI models, dedicated, highly efficient systems are needed, allowing for a more sustainable approach. This technology could drive significant economic growth in a market like South Africa, but it requires serious political will and investment in the formidable infrastructure needed as businesses are not in the position to carry the investment. A great example is the UK's £300 million investment in the Isambard-AI supercomputer, making them a leader in AI. This top-tier supercomputer will give researchers access to the same advanced AI resources as the world's best, paving the way for the next wave of scientific breakthroughs.

At the start of this new year, public and private sector leaders should jump on the opportunities brought by cloud repatriation, high-performance computing and edge computing to stay ahead. By investing in advanced technologies and smart cloud management, they can drive innovation, boost operational efficiency, and maintain a competitive edge in our rapidly changing digital world.