James Lucas, CEO at CirrusHQ, argues that cloud autonomy and ‘choice by default’ will accelerate as organisations push back on lock-in, cost shocks, and rigid contracts.
Over the last 12 months, we’ve seen more organisations recognise the value of the cloud. For us, there’s been a significant uptick in public sector organisations taking a cloud-native approach – something I expect will continue at pace into 2026.
As organisations realise the benefits of the cloud through smaller projects aligned with best practice, it’s encouraging to see them consider future migrations and deployments. But there are other developments I foresee over the next year.
Cloud autonomy will become a reality
Gone are the days when organisations wanted the security of a lengthy contract with a single vendor. Legacy vendor lock-in in the cloud remains a challenge for many – and we’ve seen a sharp rise in organisations being hit with significant cost hikes and lengthy contract extensions. Increasingly, they’re breaking away from the status quo and demanding cloud infrastructure that gives them the flexibility their business requires.
How organisations want to work with vendors has evolved significantly since many of those contracts were first signed. With cost and commitment under greater scrutiny, I expect more organisations will recognise the value of cloud marketplaces in 2026.
Marketplaces can give organisations the autonomy to pick and choose the services and tools they need, when they need them – without the pain of restriction. And when no one knows what might be around the corner from a macroeconomic or geopolitical perspective, organisations will increasingly seek to maintain control over the business operations that are within their power.
Shadow IT vs data sovereignty
Hyperscalers are creating and launching sovereign cloud offerings to guarantee where customer data is stored and processed. But organisations using cloud services must also ensure shadow IT doesn’t undermine sovereignty efforts or increase non-compliance. Enterprises need to take this seriously in 2026.
Many IT environments can benefit from stronger best practice – regardless of whether an organisation is pursuing something as complex as sovereign cloud. Much like the adage “if you don’t test your backups, you don’t have any,” in 2026 organisations should recognise that if they don’t have automated, detailed reporting on policy compliance, then they effectively don’t have it at all.
Without automated oversight, IT estates can become unwieldy, unmanageable, and non-compliant – and often end up duplicating work and data. By automating the detection of non-compliant activity, organisations can adopt a ‘shift left’ approach: addressing issues earlier in the process and keeping the environment secure and manageable.
AI and the cloud will be co-dependent
Unsurprisingly, AI will remain top of mind for organisations over the coming year. While many will look to AI to drive transformation, it will require a solid data foundation to thrive.
As we saw recently at AWS re:Invent, as the cloud enters a new phase of maturity in 2026, major platform investments will likely focus on three areas: advanced AI, data consolidation, and financial control.
From what we’re seeing in the wider market, cloud platforms will make AI development more dependable by automatically managing steps, fixing errors, and tracking complex jobs – dramatically improving the stability of AI tools and long-running workloads.
For those concerned about AI’s environmental impact over the coming year and beyond, the answer isn’t halting progress. It’s treating climate, power, and water considerations as measurable factors to be managed alongside performance and cost. Thoughtful choices around architecture, suppliers, and workload optimisation can help ensure AI delivers value while aligning with sustainability goals.
Ultimately, success in 2026 won’t just be measured by migration speed. It will be measured by whether organisations can combine the foundational stability of the cloud with proactive compliance – so technology decisions are considered, deliberate, and future-proof.
That means getting cloud systems ready to operate more efficiently and intelligently. Making the cloud work harder and deliver maximum value for the business is clearly the direction we’re headed – and it’s a positive shift I fully support.
This article is part of our DCR Predicts 2026 series. Check back every day this week for a new prediction, as we count down the final days of January.
