Organizations shift from cloud-first approaches to balanced environments for flexibility, cyber resilience, financial accountability, ISG Provider Lens^® report says

Enterprises worldwide are redesigning IT operating models to support AI, strengthen operational resilience and improve consistency across increasingly distributed environments, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.

The 2026 ISG Provider Lens^® global Private/Hybrid Cloud — Data Center Solutions report finds that cloud-first strategies are becoming less common, giving way to balanced hybrid approaches that incorporate public cloud, private cloud, colocation, edge and sovereign environments. More than 80 percent of enterprises are revising their cloud plans to accommodate AI workloads while addressing resilience, sovereignty and financial management requirements.

"Hybrid cloud has become less about where workloads run and more about how enterprises maintain control across increasingly diverse environments," said Anay Nawathe, ISG cloud delivery lead for the Americas. "Organizations are redesigning operating models to support AI at scale while enhancing financial discipline and the flexibility to adapt to new business and regulatory demands."

Performance and cost management are high priorities for enterprises as they expand hybrid cloud environments. Rather than focusing primarily on infrastructure deployment, organizations increasingly expect unified platforms that combine observability, automation and financial management into a consistent operating framework. Sovereign cloud strategies are also gaining importance as enterprises place greater emphasis on infrastructure control, data residency and regional requirements when crafting hybrid strategies for the long term.

Preparation for AI expansion is one of the central reasons for changing cloud strategies. Enterprises are investing in GPU-enabled architectures, distributed data platforms and hybrid AI operating models while adopting AI platforms to reduce alert fatigue, speed root cause analysis and automate routine remediation. However, they remain cautious about AI and are incorporating explainable AI, policy controls and human oversight to reduce operational risk across distributed IT estates.

Cyber resilience is becoming an essential requirement as enterprises prepare for increasingly sophisticated threats affecting business continuity. Organizations now seek platforms that support immutable backups, air-gapped data vaults, identity system resilience and orchestrated disaster recovery. Recovery after cyber incidents now requires validation. Many enterprises are also carefully consolidating IT service management and other operational tools, seeking to simplify management while preventing vendor lock-in, ISG says.

"The most effective hybrid platforms no longer treat operations, cyber recovery and cost management as separate disciplines," said Shashank Rajmane, ISG principal analyst and lead author of the report. "Enterprises increasingly expect providers to unify these capabilities, improving business continuity and long-term performance."

The report also explores other trends affecting private hybrid cloud and data center solutions, including the growing importance of sovereign AI in enterprise infrastructure strategies and the increasing emphasis on operational auditability to support controlled AI-assisted automation.

For more insights into the private and hybrid cloud challenges faced by enterprises, along with ISG’s advice for addressing them, see the ISG Provider Lens Focal Points briefing here.

The report evaluates the capabilities of 40 providers across two quadrants: Hybrid Cloud Operations Platforms (AIOps enabled) and Resiliency Platforms.

It names Broadcom (VMware) and HPE as Leaders in both quadrants. BMC Software, CloudBolt Software, Cohesity, Commvault, Dell Technologies, Flexera, HCLSoftware, IBM, Rubrik, ServiceNow and Veeam are named as Leaders in one quadrant each.

In addition, CoreStack is named as a Rising Star — a company with a "promising portfolio" and "high future potential" by ISG’s definition — in one quadrant.

A customized version of the report is available from Cohesity.

The 2026 ISG Provider Lens global Private/Hybrid Cloud — Data Center Solutions report is available to subscribers or for one-time purchase on this webpage.

About ISG

ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its 1,500 professionals worldwide working together to help clients maximize the value of their technology investments.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260715859176/en/

Press Contacts:

Laura Hupprich, ISG

+1 203-517-3132

laura.hupprich@isg-one.com

Erik Arvidson, Matter Communications for ISG

+1 978-518-4542

isg@matternow.com